Today House Ways and Means Select Revenue Measures Subcommittee Chairman Mike Thompson (D-CA), Rep. Paul Cook (R-CA), and Rep. Brian Fitzpatrick (R-PA) announced the introduction of the Renewable Energy Extension Act, a bipartisan bill to extend the energy investment tax credit (ITC) for five years to promote clean energy investment. Senator Catherine Cortez Masto (D-NV) introduced the companion bill in the Senate.
"Clean energy is our future -- a crucial part of deploying green energy that creates jobs, reduces our dependence on foreign energy sources, improves our environment. That's why I am proud to introduce the Renewable Energy Extension Act, a bill to extend the energy investment tax credit at 30 percent for five years," said Thompson. "This tax credit is a key part of increasing the use of clean energy technologies and it helps our environment. And we know it works, the ITC produced billions in investment last year alone and I'm proud to introduce this important bill to help green our tax code today."
"I'm pleased to cosponsor the Renewable Energy Extension Act. This legislation will create jobs, encourage investment in our economy, and it's good for the environment," said Cook. "I look forward to working with Congressman Thompson to advance this bipartisan issue."
"Clean energy presents an enormous opportunity to grow our economy, reduce carbon emissions, and bolster our national security," said Fitzpatrick. "Entrepreneurship in clean energy must be incentivized for these reasons, and I strongly support enhanced investment in the clean energy sector to promote American prosperity."
Under current law, several provisions of the ITC begin to phaseout at the end of this year and 2019 is the last year that both residential and commercial renewable energy projects can take advantage of the ITC's full 30 percent value before it steps down to 10 percent in 2022 for commercial and utility projects, as well as residential systems owned by companies. Without the ITC's extension, the credit drops to zero for residential installations owned by homeowners in 2022. The Renewable Energy Extension Act would provide a five-year extension of the current law Section 48 business energy investment tax credit (ITC) and 25D tax credit for residential energy efficient property. This includes technologies related to solar, fuel cells, geothermal, and microturbines.
"Protecting the environment is good for our health and our economy. These tax incentives help us achieve these goals by increasing commercial and residential solar use, reducing carbon emissions, and creating good-paying jobs," said Senator Cortez Masto. "My legislation would ensure that Nevada remains a national leader in solar energy and that companies continue to make strong investments in solar energy and innovation for years to come."
The solar industry alone generated a $17 billion investment in the American economy in 2018 and employs over 240,000 workers nationwide. Because of these credits, solar energy has averaged 50 percent annual growth for a decade. A copy of Thompson's legislation to expand the ITC is attached to this release.