The US Stimulus Bill, which includes a one-year extension of the production tax credit for targeted renewable energy initiatives, has been signed into law by President Trump.
Under the new legislation, the production tax credit for onshore wind will remain at 60% before decreasing again at the beginning of 2021, instead of the previous deadline at the end of this year.
The nation’s nascent offshore wind industry will benefit from a 30% investment tax credit for projects that commence construction until 31 December 2025.
Solar will benefit from a two-year extension of the investment tax credit at 26%.
The tax credit extensions form part of a $1.4 trillion federal spending and tax extension package in conjunction with a $900bn coronavirus rescue deal.
US Congress agreed the Covid-19 omnibus legislation on 21 December.