The US extends renewables tax credit deadlines due to Covid-19


The US Congress agreed Sunday a $900 billion bipartisan pandemic relief bill. The bill contains several provisions aimed to boost investment in clean energy. For instance, the package includes targeted renewable energy initiatives and a one-year extension of the production tax credit.

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US Congress new Covid-19 package for renewable energy

On Sunday, US Congressional leaders agreed on a $900 billion bipartisan pandemic relief bill, part of a larger $1.4 trillion Covid-19 omnibus government spending package.

This legislation would extend federal tax credits that incentivize the construction of new wind and solar power plants. The package also contains extensions for carbon capture, biofuels, and alternative fuels tax credits.

In this regard, the US tax credit extensions aim to mitigate the effects on developers of disrupted supply chains.

The production tax credit for onshore wind will remain at 60% before decreasing again at the beginning of 2021, instead of the previous deadline at the end of this year.

Solar projects will benefit from a two-year extension of the investment tax credit at 26% in the US. Offshore wind will benefit from a 30% investment tax credit for projects that commence construction until 31 December 2025.


The American Clean Power Association said regarding the package: “This bipartisan agreement is a major win for American energy consumers; providing more opportunities for them to receive reliable, zero-carbon, and pollution-free electricity in their local communities.”

“We appreciate that Congress has recognized clean energy’s significant contributions to our nation’s economy and role in providing jobs and investments during the recovery from the Covid-19 pandemic,” the Association added

“As we enter the new year; stable policy support will help ensure that wind and solar can continue providing the backbone of our country’s electricity growth.”

“We also applaud Congress for recognizing the enormous potential of offshore wind, America’s largest untapped electricity source, as a brand-new provider of jobs for American workers and clean power for American families,” the Association concluded

Energy Storage Association

“The inclusion of the Better Energy Storage Technology (BEST) Act as part of the year-end spending and relief package is further proof of the bipartisan, bicameral support for energy storage to improve grid reliability and flexibility,” said U.S. Energy Storage Association CEO, Kelly Speakes-Backman.

“Congress has recognized the critical role of energy storage in building a clean energy future. We commend Senator Collins and Senator Heinrich, along with Representatives Casten, Foster, and Herrera Beutler, for their leadership in introducing this important legislation.”

“The BEST Act authorizes $1 billion over 5 years for federal innovation investments in energy storage technology research, development, and demonstration (RD&D). In addition to elevating energy storage as a top, cross-functional R&D priority of U.S. Department of Energy, the BEST Act establishes a new competitive grant program for states, utilities, and private companies to deploy energy storage in a variety of applications,” the CEO added.

“This demonstration program advances storage technology innovation and grid operations and sets the foundation for future storage deployments to protect our electric infrastructure against disruption as it enables a zero-carbon energy supply mix. We look forward to working with DOE and Congress to ensure this important program is fully funded and operates effectively,” Backman concluded.

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