The Internal Revenue Service is shedding light on the timeline for solar projects, including in Indiana, to get the biggest federal tax incentives.
Last week, the IRS said that if solar developers invest 5 percent of the total cost of the project by the end of 2019 and finish it by 2023, they can get a 30 percent tax credit. Projects started after 2021 would only get 10 percent.
President of the Indiana Energy Association Mark Maassel says this will help solar developers make their plans.
“This is always difficult for any business trying to make a decision to invest literally millions of dollars if they have those kinds of uncertainties out there,” he says.
Scott Biggs manages commercial accounts in Indiana for Jefferson Electric LLC. He says the guidance also gives Indiana solar developers enough time to buy any foreign panels they want to use at a lower price.
“If it’s done past 2021, the new tariff that came on for modules would also be voided,” he says.
The Trump administration imposed tariffs on solar panels in January. The Indiana Utility Regulatory Commission says Indiana utilities can also take advantage of the tax incentives.
Indiana Environmental reporting is supported by the Environmental Resilience Institute, an Indiana University Grand Challenge project developing Indiana-specific projections and informed responses to problems of environmental change.