U.S. Sens. Michael Bennet, D-Colo., and Dean Heller, R-Nev., have introduced a bill to allow firms to qualify for the investment tax credit (ITC) for solar projects that are under construction before the credit's expiration date, rather than having to wait until those projects are completed and in service.
Currently, in order for a project to qualify for the ITC, it must be ‘placed in service’ by Dec. 31, 2016, meaning it must be complete and capable of generating power. The Bennet-Heller bill would replace this requirement to allow projects meaningfully under construction to be eligible for the credit, similar to a change made to the production tax credit for wind projects in 2012.
Solar sector advocates, including the Solar Energy Industries Association, have been lobbying for legislation to postpone the ITC sunset.