The IRS released establishing rules for the solar Investment Tax Credit (ITC).
The rule says if a solar project meets one of two thresholds by an end-of-year deadline, it can still qualify for the credit in that year. The two thresholds include starting physical work of a significant nature or meeting the 5 percent safe harbor test, which is paying 5 percent or more of the total cost of the facility in the year construction begins.
At the beginning of 2020, the 30 percent ITC reduces to 26 percent; in 2021, it will decrease to 22 percent and drop to 10 percent for commercial projects in 2022 and beyond.
The long-term extension provides market certainty for companies to develop long-term investments that drive competition and technological innovation.
