Sign Up For Novogradac Industry Alert Emails

Renewable Energy Tax Credits News Briefs - September 2016

Sen. Martin Heinrich, D-N.M., introduced the Energy Storage Tax Incentive and Deployment Act of 2016 (S. 3159) July 12. The bill would create a 30 percent investment tax credit (ITC) for energy storage devices. The bill would apply to both large, grid-connected energy storage systems and smaller systems for residential properties. Systems would be eligible for the same 30 percent ITC that other renewable energy technologies receive. Systems would also face the gradual phase-down starting in 2019 that was part of the ITC extension that was passed at the end of 2015. The tax credit would be in effect for property placed in service starting at the beginning of this year. The bill would also expand Section 25D of the Internal Revenue Code to create a 30 percent ITC for residential energy storage equipment. Under this bill, no credits would be issued after Dec. 31, 2026. At press time, S. 3159 had been sent to the Senate Finance Committee. The text of the bill is available at


On Aug. 1, the U.S. Department of Housing and Urban Development (HUD) published the Renewable Energy Toolkit for Affordable Housing. This toolkit enables recipients of HUD Community Planning and Development (CPD) grants to integrate renewable energies into their affordable housing development programs. This is done through the HOME Investment Partnerships Program, Community Development Block Grant (CDBG), and Housing Opportunities for Persons With AIDS or Emergency Solutions Grants. The toolkit is available at


The Louisiana Department of Revenue announced July 19 that the amount of claims already submitted for Louisiana’s solar energy system tax credit exceeds by $14 million the amount of money available to pay claims on purchased systems. Consumers purchasing residential solar energy systems from now on are not expected to receive tax credits from the state. The scheduled end of the credit program is Dec. 31, 2017. Taxpayers who applied for credits under the fiscal year (FY) 2016 cap but did not receive those credits will be notified if they are eligible for deferred claims under the $10 million cap for FY 2016-17 or the $5 million cap for FY 2017-18. Any taxpayer who is denied a solar energy system tax credit due to lack of funds will receive a certified letter of denial. At press time, the department was reviewing prior claims. The state’s program covers 50 percent of the first $25,000 spent by a consumer on solar panels, which can be combined with a tax credit from the federal government, which covers an additional 30 percent. 


Sen. Lamar Alexander, R-Tenn., introduced S. 3169 July 12. The bill would end the production tax credit (PTC) this year, despite its scheduled expiration date of Dec. 31, 2019. Alexander has opposed efforts to extend the PTC since he joined the Senate in 2003, and this new bill would provide additional funding for the Department of Energy’s Office of Science, as well as increase funding for the Office of Science by the $8.1 billion saved by ending the PTC two years sooner. S. 3169 was referred to the Senate Finance Committee. 


On Aug. 3, Greentech Media (GTM Research) released the report, “Global Solar Demand Monitor: Q3 2016.” The report analyzes five trends for the global solar market, but says that while global solar installations will grow by more than 40 percent this year, there is a downward revision for installations in the United States. The report said that the extension of the ITC last winter helped solidify the U.S. market, but shifted the demand to 2017. In its previous forecast, GTM Research forecast 16 gigawatts of solar would be installed this year in the United States. FTM Research now forecasts 14.5 gigawatts will be installed. The report said that 60 percent of utility photovoltaic capacity additions that were expected to come online this year will actually come online next year. The report is available at 

Journal Category:

Renewable Energy Tax Credits



Learn more about Novogradac's expertise and many services