TRENTON – A resolution sponsored by Senator Jim Whelan urging the President and the Congress of the United States to extend the solar investment tax credit, which will expire at the end of 2016, cleared the Senate Environment and Energy Committee today.
“The solar investment tax credit and other tax policies related to renewable sources of energy promote job creation, spur economic growth, and result in significant environmental benefits for our state and nation,” said Senator Whelan (D-Atlantic). “As we look to enhance our energy independence and create a more sustainable future in New Jersey, such credits are important incentives to residential and commercial property owners considering installing solar energy systems and must be renewed.”
Originally enacted as part of the federal Energy Policy Act of 2005, the solar investment tax credit provides a 30 percent tax credit for the cost of solar energy systems placed in service on residential and commercial properties before December 31, 2016. After that date, the tax credit will drop to 10 percent for commercial solar energy systems placed in service and will cease to be available for residential systems altogether, unless the deadline is changed.
“By maintaining and extending the solar investment tax credit, we are supporting the development of solar energy, encouraging private sector investment in solar manufacturing and project construction, and encouraging homeowners to invest in renewable energy systems that will benefit our economy and environment for many years to come while at the same time reducing costs for consumers,” said Senator Whelan.
Maintaining the residential solar investment tax credit will also assist thousands of small businesses across the country that install, contract, or work on residential systems, and provide market certainty for the solar industry to continue making long-term investments in manufacturing facilities and supply chain expansion.
The resolution, SCR-172, passed the Senate Environment and Energy Committee and now heads to the Senate for consideration.