Congresswoman Linda Sánchez introduces bill to increase and extend residential solar tax credit

Congresswoman Linda T. Sánchez (D-CA) introduced the Residential Solar Opportunity Act, which would ensure working families and homeowners have the same access as corporations to tax incentives for deploying solar power generation.

“Homeowners play a critical role in supplying our electric grid with the renewable energy we need to eliminate carbon emissions from our economy and combat climate change,” said Congresswoman Linda T. Sánchez. “As we prepare to make major investments in renewable energy, we must ensure that homeowners who want to reduce their carbon footprint have access to the same resources as corporations. This legislation would provide the same long-term value of the residential solar energy credit as the corporate solar investment tax credit under current law.”

Under Section 25D of the Internal Revenue Code, individuals can receive a 26% tax credit on the installation cost of a solar system through a direct purchase or a loan. Corporations can earn a similar 26% tax credit on solar system installation costs under Section 48.  However, under current law, corporations will continue to receive a permanent 10% credit while the residential solar credit is set to phase down to zero completely by 2024. Parity between these credits is critically important to sustained residential solar market growth, as the 25D credit supports 70% of residential solar systems sold in the U.S.

The Residential Solar Opportunity Act would ensure the 25D residential credit receives the same treatment as proposals to extend the Section 48 solar investment tax credit, including in the GREEN Act. The 25D residential credit would be increased to 30% for five years, and then gradually phased down to a 10% permanent credit after the year 2028.

“Ensuring homeowners and renters receive the same incentives as businesses to install solar and energy storage will expand access to the electricity bill savings and resiliency benefits for those who need it most, create more good paying jobs with benefits, and further enable the country to tackle climate change head-on,”said Suzanne Leta, Head of Policy and Strategy at SunPower. “This is a critical step for residential solar and energy storage customers across the country and towards a more sustainable future.”

Cosponsors of the Residential Solar Opportunity Act include Representatives Terri Sewell (D-AL) and Jimmy Gomez (D-CA).

The legislation is also endorsed by the 25D Parity Coalition, a group of solar companies, cooperatives and non-profits, including: SunPower Corporation, Amicus Solar Cooperative, Aztec Solar, Blue Raven Solar, Clean Energy Credit Union, Dividend Finance, Energy Toolbase, Freedom Solar Power, GoodLeap, LLC, Hanwha Q-Cells America, Jinko Solar (U.S.) Inc., Local Solar for All, Mosaic, Neil Kelly Company, Renova Energy, Sigora Solar, Solar United Neighbors Action, Sungage Financial and Sunlight Financial.

News item from the office of Congresswoman Linda T. Sánchez

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Original Source: https://www.solarpowerworldonline.com/2021/07/congresswoman-linda-sanchez-residential-solar-tax-credit-extension-bill/