The government has agreed to prolong terms to wind and solar energy companies delivering renewable energy to qualify for federal tax credits. Trump “turned green“ due to the coronavirus pandemic.
The move was of course welcomed by wind and solar energy producers. The federal tax credits has turned out to be a critical tool to make wind energy more competitive with electricity from fossil fuels in regards of electricity production.
Federal tax credits will concern projects released in 2016, 2017 and later. Similarly, the tax credits can be used for projects released during the upcoming year. The credit is 2.5 cents per kWh for wind projects launched in 2016 and only 2 cents per kWh for projects that started a year later.
Solar projects can utilize tax credits in case they were launched in 2019 or later. The bonus will represent 30% of project value in 2019, but only for those projects launched that year. The tax credit is set on 26% for 2020 projects and the value will probably further decline in the upcoming year.
