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 today.
“The solar investment tax credit is an important incentive to residential and commercial property owners who are considering solar energy systems,” said Senator Whelan (D-Atlantic). “Such tax policies that relate to renewable sources of energy promote job creation, economic growth, and yield great environmental benefits that will move New Jersey and our nation forward as we aim to reduce our reliance on carbon-based energy sources.”
Originally enacted as part of the federal Energy Policy Act of 2005, the solar investment tax credit provides a 30 percent tax credit for the cost of solar energy systems placed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.
“Extending the solar investment tax credit would continue to support the development of solar energy and encourage investment in renewable energy systems that will benefit our economy and environment and reduce 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 with a vote of 37-1. It now heads to the Assembly for consideration.