Congresswoman Linda Sánchez introduces bill to increase and extend residential solar tax credit
Congresswoman Linda T. Sánchez (D-CA) introduced the Residential Solar Opportunity Act, which would ensure that working families and homeowners have the same access as businesses to tax incentives for deploying solar energy.
“Homeowners play a critical role in providing our electrical grid with the renewable energy we need to eliminate our economy’s carbon emissions and fight climate change,” said Congresswoman Linda T. Sánchez. “As we prepare for major investments in renewable energy, we must ensure that homeowners looking to reduce their carbon footprint have access to the same resources as businesses. This legislation would provide the same long-term value of the residential solar credit as the tax credit for investments in solar energy for businesses under the current legislation.”
Under Section 25D of the Internal Revenue Code, individuals can receive a 26% tax credit on solar system installation costs through a direct purchase or loan. Businesses can earn a similar 26% tax credit on solar system installation costs under Section 48. However, under current law, businesses will continue to receive a 10% permanent credit, while residential solar credit will be completely reduced to zero by 2024. Parity between these credits is critical to continued growth of the residential solar market as the 25D credit supports 70% of residential solar systems sold in the US
The Residential Solar Opportunity Act would ensure that the 25D home loan receives the same treatment as proposals to extend the Section 48 tax credit for solar investments, including in the GREEN Act. The 25D home loan would be increased to 30% for five years and gradually reduced to a permanent loan of 10% after the year 2028.
“Ensuring that homeowners and renters have the same incentives as companies to install solar and energy storage will increase the savings and resilience benefits of the electric bill for those who need it most, creating more high-paying jobs with benefits and the land.” further enable us to tackle climate change head-on,” said Suzanne Leta, chief of policy and strategy at SunPower. “This is a critical step for residential solar and energy storage customers across the country and towards a more sustainable future.”
Co-sponsors of the Residential Solar Opportunity Act include Representatives Terri Sewell (D-AL) and Jimmy Gomez (D-CA).
The legislation is also endorsed by the 25D Parity Coalition, a group of solar energy companies, cooperatives and nonprofits including: SunPower Corporation, Amicus Solar Cooperative, Aztec Solar, Blue Raven Solar, Clean Energy Credit Union, Dividend Finance, Energy Toolbase , Freedom Solar Power, GoodLeap, LLC, Hanwha Q-Cells America, Jinko Solar (US) Inc., Local Solar for All, Mosaic, Neil Kelly Company, Renova Energy, Sigora Solar, Solar United Neighbors Action, Sungage Financial, and Sunlight Financial .
News from the office of Congresswoman Linda T. Sánchez