U.S. Senate Finance Committee Reports Energy Tax Package with 30% Solar Tax Credit

This week, the Senate Finance Committee approved a tax package that includes the strongest incentives for solar energy in over 20 years. The bill expands the existing 10% commercial tax credit to 30% for all property placed in service after December 31, 2005 and before January 1, 2010. The tax credit returns to 10% in 2010. This tax credit is available for all solar technologies, including PV, concentrating solar power, solar water heating, and solar hybrid lighting. The bill also creates the first residential tax credits for solar energy in the last 23 years! Residential consumers will enjoy a 30% tax credit for the installation of PV and solar water heating systems, capped at $2000. These provisions were passed with strong, bipartisan support. Having passed the Senate Finance Committee, the tax package will now be considered by the full Senate as an amendment to the energy bill. The Senate will continue markup of the Energy Bill next week and have scheduled a final vote on the bill for June 24th. In early July, the House and the Senate will work through Conference Committee to resolve differences between their respective energy bills. The Joint Committee on Taxation estimated that the solar […]

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