Solar tax credits extended in COVID relief bill

WASHINGTON — A little-known provision in the sweeping $900 billion relief package approved by Congress Monday contains a two-year tax exemption credit for solar energy producers, a growing industry in Nevada, Sen. Catherine Cortez Masto said.

Other credits for wind-generated power also were included in the bill and praised by the American Clean Power Association.

Cortez Masto said Nevada’s solar industry “supports over 9,000 jobs and spurs our clean energy economy.”

She said the extension of the Solar Investment Tax Credit and the residential renewable energy tax credit would help the state recover from “the pandemic’s devastating impact on our economy.”

The credits “will ensure that Nevada’s solar industry can continue to grow and thrive, providing good-paying jobs to Nevada workers, furthering our commitment to sustainability,” Cortez Masto said.

Solar accounts for nearly 15 percent of electricity used in Nevada. In addition to solar farms, many residents and businesses generate solar energy at homes and at office buildings.

Without an extension, the Solar Investment Tax Credit would have dropped from its current 26 percent to 22 percent after Dec. 31, and then dropped to zero for homeowners and 10 percent for businesses across the country by the end of next year.

The American Clean Power Association praised the bipartisan support to include the tax credits in the bill and recognizing the role of the clean energy industry in the economy.

“We appreciate that Congress has recognized clean energy’s significant contributions to our nation’s economy and role in providing jobs and investments during the recovery from the COVID-19 pandemic,” said Heather Zichal, CEO of the association.

Zichal said that as the new year begins, “stable policy support will ensure that wind and solar can continue providing the backbone of our country’s electricity growth.”

Contact Gary Martin at gmartin@reviewjournal.com or 202-662-7390. Follow @garymartindc on Twitter.