Legislation Would Bar Projects With Chinese Solar Modules From Tax Credit

Posted by SI Staff on May 16, 2012 No Comments
Categories : Policy Watch

Sens. Charles Schumer, D-N.Y., and Sherrod Brown, D-Ohio, have introduced legislation that would make PV modules manufactured in China ineligible for the 30% federal tax credit that homeowners and businesses receive when installing PV arrays.

The proposal would narrow the scope of solar panels eligible for the existing 30% tax credit by adding a domestic-content requirement. Specifically, the proposal would require that 70% of the parts of the qualifying solar panel be U.S.- made – or, if the final point of manufacture is in the U.S., then 50% of the parts must be U.S.-made.

Currently, the U.S. Internal Revenue Service provides tax incentives for all solar panels sold and installed in the U.S., no matter where they are made. According to Schumer and Brown, the U.S. should not ‘let Chinese companies take advantage of these tax credits, on top of the built-in subsidies [they] already enjoy back in China.’

‘The federal government has to take China's stranglehold on the solar power industry very seriously, and U.S. manufacturers must have every arrow in their quiver to fight back,’ Schumer says. ‘This proposal is tough, but it's needed to successfully counter China's unfair trade practices.’

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