After a tough year, we’re delighted to start 2021 with some good news for renewable energy and climate action!
After eight long months, and thanks to strong leadership from Senator Leahy, Senator Sanders and Congressman Welch, we finally have a COVID-relief and budget package that begins to address the climate crisis.
Making local renewable energy more affordable, this bill translates directly into good jobs, less climate pollution and more resilient communities.
What a good way to start the new year!
Among the most significant measures are extended tax credits for renewable energy.
SOLAR: The investment tax credit (ITC), which was scheduled to drop from 26% to 22% in 2021, will stay at 26% for two more years.
ADVANCED WOOD HEAT: For the first time, a 26% investment tax credit applies to the installed cost of home heating and hot water systems that utilize wood pellets, chips and cordwood at efficiencies greater than 75 percent high heat value.
GEOTHERMAL HEAT PUMPS: The 26% tax credit was also extended for geothermal heat pump projects that begin construction in 2021 and 2022.
Overall, the bill includes $600 million for wind energy, $1.35B for solar, and $1.35B for grid-scale energy storage. It also includes a plethora of stimulus measures for small businesses.