The Bipartisan Budget Act of 2018 signed by President Trump on February 11th, included a package of tax credits that may be a boost for renewable energy development and storage projects. The deal extends tax credits for the so-called “orphan” renewable energy technologies along with nuclear power production.
The tax credits were not included in the Tax Cuts and Jobs Act, signed into law late last year. These “orphan” technology extensions include fuel cells, fiber optic solar and small-scale wind which will regain ITC eligibility and will be subject to a phaseout schedule similar to that of solar projects.
The business and residential investment tax credits for fuel cells, small wind, solar fiber optics, solar water heating, groundwater geothermal heating, and geothermal heatpumps were extended through 2021. All included energy tax credits that lapsed at the end of 2017 would be retroactively reinstated for one year.
Companies will also be able to earn tax credits for every ton of carbon emissions stored through carbon capture technologies. For more information see the full bill here.