The Emergency Economic Stabilization Act of 2008, a.k.a. the “Wall Street bailout bill,” not only forged a structure for dealing with the credit crunch and mortgage crisis, but extended the Investment Tax Credit for residential and commercial solar systems.
In 2005 solar energy incentives were set for only two years. The Act extends the ITC for another eight years.
The ITC provides for a 30 percent tax credit on the purchase of solar energy systems for commercial and residential property. The incentive, which was set to expire on December 31, 2008, now is in effect through 2016.
The ITC provisions also eliminated the $2,000 cap on the residential tax break. Homeowners can now enjoy the full benefit of the 30 percent tax credit.
