A new study has claimed that some USD232bn in investment and thousands of new jobs will be created if the US Congress approves the extension of the solar investment tax credit (ITC) for an additional eight years.
“By extending the solar investment tax credits, Congress can provide an immediate boost to the floundering US economy by creating hundreds of thousands of jobs and injecting billions of dollars of new investment capital into the economy, while at the same time driving down energy costs for consumers,” said Rhone Resch, president of the Solar Energy Industries Association (SEIA), based in Washington, D.C.
“The solar energy industry creates jobs that are the foundation of our economy – jobs for manufacturers, construction workers, engineers, roofers, electricians, and plumbers. These jobs are needed now and Congress is in a position to extend the ITC and ensure that these jobs are created here in the US," Resch added.
Both the House of Representatives and the Senate are deliberating on plans to extend the 30% investment tax credit for solar energy property and qualified fuel cell property through 2016 as part of a wider package of clean energy tax incentives worth many billions of dollars. The House bill also stipulates that an existing limitation that prevents public utilities from claiming the investment tax credit be removed, and both bills allow these credits to be used to offset alternative minimum tax (AMT).
According to the study, by 2016, the solar energy industry would create 440,000 permanent US jobs with much of the direct growth occurring in domestic manufacturing, construction and the trades.
Because solar energy components are manufactured near their markets, extending the solar ITC would create investment opportunities in all 50 states, the report noted. Those states that would enjoy the largest economic boost are California, Florida, Arizona, New Mexico, Nevada, New Jersey, Massachusetts, New York, Oregon, and Washington.
"There is the potential to create significant US employment and investment opportunities," said Jay Paidipati, Managing Consultant at Chicago-based Navigant Consulting, Inc.
"An 8-year extension of the ITC would allow the market to maintain or possibly exceed its current growth rate," he added.
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