Country:United States
Year:1992 (last amended 2016)
Policy status:In Force
Date Effective:1992 (last amended 2016)
Date Amended:

updated 2005, 2006, 2008, 2009, 2016

Date Ended:2022
Policy Type:Economic Instruments>Fiscal/financial incentives>Tax relief
Policy Target:Energy Sector>Electricity Generation>Renewable>Wind, Energy Sector>CHP, Energy Sector>Electricity Generation>Renewable>Bioenergy, Energy Sector>Electricity Generation>Renewable>Geothermal, Energy Sector>Electricity Generation>Renewable>Solar Photovoltaic, Energy Sector>Electricity Generation>Renewable>Solar Thermal
Agency:Internal Revenue Service (IRS)
Legal References:Tax Relief and Health Care Act of 2006

The federal Business Energy Investment Tax Credit (ITC) has been amended a number of times, most recently in December 2015, and affects a number of generation technologies.
• For solar technologies (PV, water heating, space heating/cooling, process heat) a 30% ITC is available through 2019, ramping down to 26% in 2020 and 22% in 2021. In 2022 and beyond a 10% ITC is permanent
• Small wind, fuel cells, and hybrid solar lighting the 30% ITC expires at the end of 2016.
• Geothermal heat pumps, CHP, and microturbines have a 10% ITC which also expires at the end of 2016
• Geothermal electric systems have a permanent 10% ITC
• Large wind systems can elect a 30% ITC in 2016, ramping down annually to 24% in 2017, 18% in 2018, and 12% in 2019 before expiring fully at the end of 2019.

The expiration date for solar technologies and wind is based on when construction begins. For all other technologies, the expiration date is based on when the system is placed in service (fully installed and being used for its intended purpose).

Last modified: Thu, 09 Feb 2017 15:24:41 CET