California has been basking in a solar energy boom, as companies and homeowners scramble to install solar panels by the end of 2016. That’s when a hefty tax credit is due to fade away.
Right now, the federal solar investment tax credit saves businesses and homeowners 30 percent off the price of solar installations. That credit is slated to disappear completely for residential installations at the end of 2016. At the same time, businesses will see it drop to a 10 percent tax credit. While it’s possible Congress could extend the subsidies, it has made no move to do so yet.
If the subsidies shrink, the state’s solar-induced economic growth spurt – which has produced jobs, corporate profits and lower electric bills for homeowners and businesses – also could sputter.
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