{"id":331593,"date":"2024-06-05T10:11:29","date_gmt":"2024-06-05T08:11:29","guid":{"rendered":"https:\/\/climatescience.press\/?p=331593"},"modified":"2024-06-05T10:11:32","modified_gmt":"2024-06-05T08:11:32","slug":"permanent-tax-subsidy-solars-15-extensions","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=331593","title":{"rendered":"Permanent Tax Subsidy? Solar\u2019s 15 extensions"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

From Master Resource<\/a><\/p>\n\n\n\n

By Robert Bradley\u00a0<\/em><\/p>\n\n\n\n

\n

\u201cBut nothing is so permanent as a temporary government program.\u201d (Milton and Rose Friedman, Tyranny of the Status Quo<\/em>, 1983, p. 115)<\/p>\n\n\n\n

\u201cThe infant industry argument is a smoke screen. The so-called infants never grow up.\u201d (Milton and Rose Friedman, Free to Choose<\/em>, 1979, p. 49)<\/p>\n<\/blockquote>\n\n\n\n

What was said in a previous post regarding wind power\u2019s 14 extensions<\/a> of the Production Tax Credit also applies to solar power\u2019s Investment Tax Credit (ITC) and its preceding tax favors. From 1978 to the present (46 years), 15 extensions belie the industry\u2019s age-old claims of almost being competitive. Remember the New York Times\u2019 declaration<\/a> in 1994 (per Enron) that solar was \u201ccompetitive\u201d with fossil fuels? Remember Solyndra<\/a>? Joe Romm in 2011<\/a>: \u201cIt is clear that solar and wind are competitive in many situations right now.\u201d<\/p>\n\n\n\n

Solar is not an infant industry<\/a>, having been demonstrated as grid electricity in the nineteenth century<\/a> and again during World War II<\/a>. But it is dilute and intermittent, fatal qualities as against fossil-fuel-generated electricity.<\/p>\n\n\n\n

A legislative review (source: Congressional Research Service<\/a>) of the solar tax subsidy reveals fifteen (15) legislative extensions from 1978 to 2022 with the current law extending to 2035 (57 years). A dividing point is the Energy Policy Act of 1992, which tripled<\/em> solar\u2019s credit (and put wind back into business after a short expiration).<\/p>\n\n\n\n

Early History<\/strong> [7 laws; 6 extensions]<\/p>\n\n\n\n

    \n
  1. The\u00a0Energy Tax Act of 1978<\/strong><\/a>\u00a0(P.L. 95-618) created a \u201ctemporary\u201d 10 percent tax credit for business property and equipment using energies other than [thought to be rapidly depleting] oil or natural gas. Tax credits for solar (and wind) were refundable (e.g. credits could be received as a payment if the taxpayer could not offset his or her tax liability). Expiration was set for December 31, 1982.<\/li>\n\n\n\n
  2. The\u00a0Windfall Profit Tax Act of 1980<\/strong><\/a>\u00a0(P.L. 96-223) expanded the energy credit to subsidize qualifying renewables. The prior tax credits for solar (and wind) were extended for three years (through 1985) and increased to 15 percent. The credit was made nonrefundable.<\/li>\n\n\n\n
  3. The\u00a0Tax Reform Act of 1986<\/strong><\/a>\u00a0(P.L. 99-514), extended investment tax credits for solar (and geothermal) with a phase down to 10 percent before being set to expire December 31, 1988. The credit for wind was not extended.<\/li>\n\n\n\n
  4. The\u00a0Miscellaneous Revenue Act of 1988<\/strong><\/a>\u00a0(P.L. 100-647) extended the solar, geothermal, and ocean thermal investment credits at their 1988 rates.<\/li>\n\n\n\n
  5. The\u00a0Omnibus Budget Reconciliation Act of 1989<\/strong><\/a>\u00a0(P.L. 101-239) again extended the credits for solar (and geothermal and ocean thermal).<\/li>\n\n\n\n
  6. The\u00a0Omnibus Budget Reconciliation Act of 1990<\/strong><\/a>\u00a0(P.L. 101-508) extended the tax credits for solar (and geothermal).<\/li>\n\n\n\n
  7. The\u00a0Tax Extension Act of 1991<\/strong><\/a>\u00a0(P.L. 102-227) again extended the solar (and geothermal) tax credits.<\/li>\n<\/ol>\n\n\n\n

    Modern History<\/strong> [9 extensions\/modifications]<\/p>\n\n\n\n

      \n
    1. The\u00a0Energy Policy Act of 1992<\/a><\/strong>\u00a0(P.L. 109-58) increased the ITC from 10 percent to 30 percent for commercial\/residential solar through 2006.<\/li>\n\n\n\n
    2. The\u00a0Tax Relief and Health Care Act of 2006<\/strong>\u00a0<\/a>(P.L. 109-432) extended the above credits for one additional year (2007).<\/li>\n\n\n\n
    3. The\u00a0Emergency Economic Stabilization Act of 2008<\/a><\/strong>\u00a0(P.L. 110-343) substantially expanded and provided the ITC for solar through 2016 (8 years).<\/li>\n\n\n\n
    4. The\u00a0Energy Improvement and Extension Act of 2008<\/a><\/strong>\u00a0expanded the new solar tax credits for Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, and Solar Hybrid Lighting with a home-use cap of $2,000.<\/li>\n\n\n\n
    5. The\u00a0American Recovery and Reinvestment Act of 2009<\/a><\/strong>\u00a0(P.L. 111-5) modified and extended the ITC energy tax credit through 2016. The $2,000 cap was removed.<\/li>\n\n\n\n
    6. The\u00a0Consolidated Appropriations Act of 2016<\/a><\/strong>\u00a0(P.L. 114-113) extended the credit through 2019. The termination date was changed from a placed-in-service deadline to a construction start-date phaseout, with a 26 percent for construction beginning in 2020, and 22 percent for construction commencing in 2021.<\/li>\n\n\n\n
    7. The\u00a0Bipartisan Budget Act of 2018<\/a><\/strong>\u00a0(P.L. 115-123) extended the ITC for five years for fiber-optic solar (as well as fuel cell, small wind, microturbine, CHP, and geothermal heat pumps). These energies were eligible for a 30 percent credit through 2019, with rates declining with construction dates.<\/li>\n\n\n\n
    8. The\u00a0Taxpayer Certainty and Disaster Tax Relief Act of 2019<\/a><\/strong>\u00a0(P.L. 116-260) extended the ITC by two years.<\/li>\n\n\n\n
    9. The\u00a0Inflation Reduction Act of 2022<\/a><\/strong>\u00a0extended the Residential Clean Energy Credit, previously called the Investment Tax Credit (ITC), through 2034 (12 years). The credit was increased to 30 percent (from 26 percent). Thirty percent of solar panel purchases were deductible from the total cost of federal taxes. The residential solar tax credit is scheduled to drop to 26 percent in 2033 and 22 percent in 2034.<\/li>\n<\/ol>\n\n\n\n

      <\/p>\n","protected":false},"excerpt":{"rendered":"

      From 1978 to the present (46 years), 15 extensions belie the industry\u2019s age-old claims of almost being competitive. Remember the New York Times\u2019 declaration in 1994 (per Enron) that solar was \u201ccompetitive\u201d with fossil fuels? Remember Solyndra? Joe Romm in 2011: \u201cIt is clear that solar and wind are competitive in many situations right now.\u201d<\/p>\n","protected":false},"author":121246920,"featured_media":331596,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691828999,691818267,691828998],"class_list":{"0":"post-331593","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-investment-tax-credit-itc","9":"tag-solar-power","10":"tag-tax-subsidy","12":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/06\/020200721_155348_0000-1.webp?fit=1200%2C675&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1ogh","jetpack-related-posts":[{"id":336117,"url":"https:\/\/climatescience.press\/?p=336117","url_meta":{"origin":331593,"position":0},"title":"A Permanent Subsidy? Nuclear Power\u2019s Price-Anderson Act (5 Extensions, 89 years)","author":"uwe.roland.gross","date":"11\/07\/2024","format":false,"excerpt":"\u201cThe infant industry argument is a smoke screen,\u201d wrote Milton and Rose Friedman in their 1979 classic, Free to Choose. \u201cThe so-called infants never grow up.\u201d And several years later, the two wrote: \u201cNothing is so permanent as a temporary government program.\u201d","rel":"","context":"In \"Industrial Wind Power\"","block_context":{"text":"Industrial Wind Power","link":"https:\/\/climatescience.press\/?tag=industrial-wind-power"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/07\/0Nuclear-Power-Plant-at-night-ratio-2.jpg?fit=1200%2C683&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/07\/0Nuclear-Power-Plant-at-night-ratio-2.jpg?fit=1200%2C683&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/07\/0Nuclear-Power-Plant-at-night-ratio-2.jpg?fit=1200%2C683&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/07\/0Nuclear-Power-Plant-at-night-ratio-2.jpg?fit=1200%2C683&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/07\/0Nuclear-Power-Plant-at-night-ratio-2.jpg?fit=1200%2C683&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":253638,"url":"https:\/\/climatescience.press\/?p=253638","url_meta":{"origin":331593,"position":1},"title":"Solar Optimism and Coal Alarmism a Century Ago","author":"uwe.roland.gross","date":"19\/04\/2023","format":false,"excerpt":"Energy history brings perspective and caution to the real-world prospects of dilute, intermittent energies becoming 21st century mainstays. The wisdom of history also checks the notion that solar (and wind) are infant industries in need of \u2018temporary\u2019 government subsidies.","rel":"","context":"In \"CO2\"","block_context":{"text":"CO2","link":"https:\/\/climatescience.press\/?tag=co2"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/04\/0Solar-energy.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/04\/0Solar-energy.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/04\/0Solar-energy.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/04\/0Solar-energy.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/04\/0Solar-energy.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":407292,"url":"https:\/\/climatescience.press\/?p=407292","url_meta":{"origin":331593,"position":2},"title":"Utility-scale Solar: The Grim News Begins (Blue Ridge \u201cwind-down\u2019)","author":"uwe.roland.gross","date":"09\/10\/2025","format":false,"excerpt":"\u201cSolar construction firm Blue Ridge Power issues mass worker layoff in North Carolina,\u201d read the article in pv magazine. \u201cThe utility-scale solar engineering, procurement and construction firm filed a WARN act with the state, cutting over 500 jobs.\u201d","rel":"","context":"In \"Blue Ridge Power\"","block_context":{"text":"Blue Ridge Power","link":"https:\/\/climatescience.press\/?tag=blue-ridge-power"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/10\/AQNNJbgkALrVzctMoejK3N-tVWQAhFZBjWVoZ9rxaH9XS70Z7h2z1RxAsoUTB51c_sQV8Sr_oWJ3A-r_60J-YqmXpySY-TNPzQpb2S0A6koYDW1ZM9dibYXp6tRX4YBGDNUivOeo-hXKAsLBTgsVFb4kz2crIQ.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/10\/AQNNJbgkALrVzctMoejK3N-tVWQAhFZBjWVoZ9rxaH9XS70Z7h2z1RxAsoUTB51c_sQV8Sr_oWJ3A-r_60J-YqmXpySY-TNPzQpb2S0A6koYDW1ZM9dibYXp6tRX4YBGDNUivOeo-hXKAsLBTgsVFb4kz2crIQ.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/10\/AQNNJbgkALrVzctMoejK3N-tVWQAhFZBjWVoZ9rxaH9XS70Z7h2z1RxAsoUTB51c_sQV8Sr_oWJ3A-r_60J-YqmXpySY-TNPzQpb2S0A6koYDW1ZM9dibYXp6tRX4YBGDNUivOeo-hXKAsLBTgsVFb4kz2crIQ.jpeg?fit=1200%2C1200&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/10\/AQNNJbgkALrVzctMoejK3N-tVWQAhFZBjWVoZ9rxaH9XS70Z7h2z1RxAsoUTB51c_sQV8Sr_oWJ3A-r_60J-YqmXpySY-TNPzQpb2S0A6koYDW1ZM9dibYXp6tRX4YBGDNUivOeo-hXKAsLBTgsVFb4kz2crIQ.jpeg?fit=1200%2C1200&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/10\/AQNNJbgkALrVzctMoejK3N-tVWQAhFZBjWVoZ9rxaH9XS70Z7h2z1RxAsoUTB51c_sQV8Sr_oWJ3A-r_60J-YqmXpySY-TNPzQpb2S0A6koYDW1ZM9dibYXp6tRX4YBGDNUivOeo-hXKAsLBTgsVFb4kz2crIQ.jpeg?fit=1200%2C1200&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":214695,"url":"https:\/\/climatescience.press\/?p=214695","url_meta":{"origin":331593,"position":3},"title":"After 40 Years of Massive Subsidies Wind & Solar \u2018Industries\u2019 Still Begging for More","author":"uwe.roland.gross","date":"21\/08\/2022","format":false,"excerpt":"Schumer-Manchin makes the wind and solar credits permanent, not phased out as advertised.","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/08\/0Screenshot-2022-08-21-100907.png?fit=616%2C876&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/08\/0Screenshot-2022-08-21-100907.png?fit=616%2C876&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/08\/0Screenshot-2022-08-21-100907.png?fit=616%2C876&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":277949,"url":"https:\/\/climatescience.press\/?p=277949","url_meta":{"origin":331593,"position":4},"title":"America\u2019s Offshore Wind Industry Covering Up True Cost of Taxpayer Funded\u00a0Subsidies","author":"uwe.roland.gross","date":"09\/09\/2023","format":false,"excerpt":"The rent-seekers that profit from the great wind and solar scam are always begging for more: more subsidies, tougher mandates and even greater renewable energy targets.","rel":"","context":"In \"America\"","block_context":{"text":"America","link":"https:\/\/climatescience.press\/?tag=america"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/00Sidebar-image-The-future-of-offshore-wind.jpg?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/00Sidebar-image-The-future-of-offshore-wind.jpg?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/00Sidebar-image-The-future-of-offshore-wind.jpg?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/00Sidebar-image-The-future-of-offshore-wind.jpg?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/00Sidebar-image-The-future-of-offshore-wind.jpg?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":427962,"url":"https:\/\/climatescience.press\/?p=427962","url_meta":{"origin":331593,"position":5},"title":"Solar Industry Searches for a Message (it is not economics)","author":"uwe.roland.gross","date":"25\/02\/2026","format":false,"excerpt":"\u201cBut messaging isn\u2019t the problem. The economics, the numbers, are. If solar is truly affordable, reliable, and resilient, the suppliers should say so plainly: in cents per kWh, free of explicit subsidies and mandates.\u201d","rel":"","context":"In \"\"better messaging\"\"","block_context":{"text":"\"better messaging\"","link":"https:\/\/climatescience.press\/?tag=better-messaging"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/02\/0-solar-scam1.jpg?fit=784%2C1168&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/02\/0-solar-scam1.jpg?fit=784%2C1168&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/02\/0-solar-scam1.jpg?fit=784%2C1168&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/02\/0-solar-scam1.jpg?fit=784%2C1168&ssl=1&resize=700%2C400 2x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/331593","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/users\/121246920"}],"replies":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=331593"}],"version-history":[{"count":3,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/331593\/revisions"}],"predecessor-version":[{"id":331597,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/331593\/revisions\/331597"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/media\/331596"}],"wp:attachment":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=331593"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=331593"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=331593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}