Legislation Championed by Schatz to Make Clean Energy More Affordable Signed Into Law

Honolulu, HI – On Friday, President Obama signed into law legislation to extend a tax credit that helps families pay for residential clean energy equipment, such as solar photovoltaics and solar hot water heaters, for five years. U.S. Senator Brian Schatz (D-Hawai‘i) first introduced legislation, S.1755, to extend the Residential Energy Efficient Property Tax Credit, also known as 25D.  Schatz then worked to include the five-year tax credit extension into the omnibus spending bill, which passed the Senate on Friday.  

“At a time when more and more families in Hawai‘i and across the country are cutting their utility bills by transitioning to clean energy, this bill is just commonsense,” said Senator Schatz. “As we continue to move toward a clean energy economy, we need to continue finding sound solutions like clean energy tax credits that are both good for families in Hawai‘i and across the country, and for our energy security.”

As part of the bipartisan deal, the tax credit will remain 30 percent through 2019, and then will become 26 percent for 2020 and 22 percent for 2021.

An estimated 97,000 Americans are now employed installing solar energy systems across our country. While the price of solar panels have decreased by more than 60 percent since 2011, the demand has soared. In 2014, more than 1,200 megawatts of residential solar were installed and 32 percent of all new electric generating capacity in the U.S. came from solar energy. It is clear that residents across our country are eager to find cheaper and cleaner ways to produce energy.

Senator Schatz's legislation, which was introduced earlier this year, was cosponsored by Senators Martin Heinrich (D-N.M.), Dianne Feinstein (D-Calif.), Cory Booker (D-N.J.), Sheldon Whitehouse (D-R.I.), and Al Franken (D-Minn.).

Residents can learn more about how to access this tax credit here.