In October 2008, the United States Congress extended both the residential and commercial solar investment tax credits (ITCs) for an unprecedented eight years, lifted the $2,000 cap on the residential credit, removed the prohibition on utility use of the commercial credit, and eliminated restrictions on the use of both credits in conjunction with the Alternative Minimum Tax. These significant changes, which apply to systems placed in service on or after January 1, 2009, will increase the value of the solar credits for residential system owners in particular, and are likely--in conjunction with state, local, and utility rebate programs targeting solar--to spur significant growth in residential, commercial, and utility-scale photovoltaic (PV) installations in the years ahead. This article focuses specifically on the residential credit, describing three areas in which removal of the $2,000 cap on the residential ITC will have significant implications for PV rebate program administrators, PV system owners, and the PV industry.
