This is great news, and it happened because you spoke up. Thank you for lending your voice to support a more equitable federal solar incentive! In addition to direct pay, there’s much more in the Build Back Better Act for solar and climate policy that helps us build the renewable energy future we need.
Read the latest from Residential Renewables for All and the Solar Energy Industries Association below to learn what’s included in the new framework. Then, please take action to keep Build Back Better moving in this very hopeful direction.
From Residential Renewables for All:
Democrats unveiled the $1.75 trillion Build Back Better Act yesterday that includes an historic $550 billion for climate and clean energy programs. And… (drumroll)… lawmakers included refundability for the 25D tax credit!
This is a big deal! A mere two months ago 25D refundability wasn’t even on the radar. Now, it’s been included in the latest BBB update. (Specifically, you can find it on page 1208 of the legislative text). This is a major victory. And it’s because of every call, email, tweet, and letter sent by you and other Residential Renewables for All members that we’ve reached this game-changing moment.
But… it’s not over yet. The Build Back Better language released this week will change as lawmakers work to finalize it. Nothing is assured. So, now is the time to send your lawmakers a note asking them to pass the Build Back Better Act with 25D refundability.
If you missed our webinar with Vote Solar, Grid Alternatives, Solar United Neighbors and SEIA’s DG Committee Chair on what yesterday’s news means for 25D you can watch it here. There are lots of other big items in the Build Back Better bill. Those have been listed below, courtesy of SEIA.
Thank you for participating in this effort — now let’s get this bill across the finish line! Take action here to tell your legislators you support direct pay for the solar tax credits.
Senator Tim Kaine visits an Ipsun job site to learn more about the solar tax credits with direct pay
The Build Back Better Act now includes:
- 10-year extensions of section 48 and section 25D investment tax credits (ITC) restored to the 30 percent level. The first five years will be extensions as we typically understand them, with the second five years transitioned to a technology neutral credit, similar to having a choice between the ITC and a production tax credit (PTC). Solar projects will also be able to choose between the ITC and PTC from the outset.
- Direct pay for the section 48 (commercial) ITC. Beginning in 2024, projects must meet escalating domestic content requirements in order to receive 100% direct pay, subject to waivers for nonavailability and price.
- Refundability for the section 25D (residential) ITC
- Standalone Storage ITC
- Transmission ITC
- Significant support for domestic manufacturing, including a domestic production credit for certain solar components and a renewal of the 48C tax credit with direct pay
- Substantial funding for projects to bring solar to schools and low-income communities
- Requirements on prevailing wage and apprenticeships
It appears that Congress intends to pass the legislation in the coming weeks, once all the final legislative language has been completed. It is critically important for our industry and its supporters to stay engaged and urge lawmakers to get this work across the finish line. Please take a moment today to send your Member of Congress a note, asking them to pass the bill and enact these transformational policies for clean energy in America.
Thank you for lending your voice to this process!
It’s your voice that has gotten direct pay included in the Build Back Better Act. Let’s speak up now to keep it there, and keep all of these critical policies in the bill. Thank you, Ipsun fam, for staying engaged in this process to the very end!