US Congress has agreed on Covid-19 omnibus legislation that includes targeted renewable energy initiatives, including a one-year extension of the production tax credit.
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.
Solar will benefit from a two-year extension of the investment tax credit at 26% and offshore wind will benefit from a 30% investment tax credit for projects that commence construction until 31 December 2025.
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.
The American Clean Power Association stated: “This bipartisan agreement is a major win for American energy consumers, providing more opportunities for them to receive reliable, zero-carbon, and pollution-free electricity in their local communities.
“We appreciate that Congress has recognized clean energy’s significant contributions to our nation’s economy and role in providing jobs and investments during the recovery from the Covid-19 pandemic.
“As we enter the new year, stable policy support will help ensure that wind and solar can continue providing the backbone of our country’s electricity growth.
“We also applaud Congress for recognising the enormous potential of offshore wind, America’s largest untapped electricity source, as a brand-new provider of jobs for American workers and clean power for American families.”