Solar companies in the Bay Area are asking Congress to extend a popular renewable energy tax program that expires at the end of the year.
Solar companies benefit from a 30 percent tax credit, but there’s a problem: most companies developing solar projects don’t have enough income to take the deduction. That’s where the 1603 treasury grant program comes in. It gives companies a cash grant up front in place of the tax credit.
“This program really was a fix that brought liquidity back to the market and enabled developers to move forward with their projects,” said Arno Harris, the CEO of Recurrent Energy, a San Francisco-based solar developer. “It’s definitely going to have an impact, if it’s not extended, on our appetite to continue investing in the US solar market.”