An Additional 10% Tax Credit Boost in 2023 and Beyond

Fantastic news! The U.S. government announced today that it is extending an additional 10% Investment Tax Credit (ITC) to specific solar projects. This is on top of the existing 30% ITC and other applicable credits and incentives.

But not just any project qualifies - the project must be located in a Metropolitan Statistical Area (MSA) with a certain Fossil Fuel Employment threshold and unemployment level.

The Solar Bonus: An Extra 10% Investment Tax Credit

The Department of Energy has just released a map detailing the eligible MSAs with projects in the Los Angeles/Orange County and Oxnard/Thousand Oaks/Ventura MSAs eligible. This significant policy update means that any of our current and future projects in these two MSAs will have a net cost that is 10% less than it was yesterday.

Unfortunately, not every MSA in California is on the list. Notably, the Riverside, San Bernardino, and San Diego MSAs are excluded from this new incentive.

The Criteria: Fossil Fuel Employment and Unemployment Levels

These two criteria are designed to target areas that are transitioning from fossil fuel industries and also experiencing high levels of unemployment. The goal is to encourage solar investment in these areas to create new jobs and boost the local economy.

The Impact: Lower Costs and Higher Returns

For our investors, this means the potential for higher returns on investment. The extra 10% ITC can significantly reduce the net cost of a solar project, making it increasingly financially feasible and attractive. It also represents a major opportunity for us to contribute to clean energy transition in these areas, providing environmental benefits in addition to economic ones.

Looking Forward: Embracing the Solar Future

While this additional 10% ITC is a significant boost, it's also a testament to the government's commitment to renewable energy. By incentivizing solar projects in these areas, it's clear that the focus is not just on reducing carbon emissions, but also on creating jobs and revitalizing local economies.

This new incentive will undoubtedly catalyze further investment in these areas, driving growth in the solar sector and contributing to a more sustainable future.

Don't hesitate to reach out if you have any questions about what this could mean for your investments. We're here to help you navigate the sunny landscape of solar investment in 2023 and beyond.

Email us at customer@sunisticsgroup.com or call 323-393-0375.