The U.S. Congress agreed Thursday to extend tax credits for renewable energy in the country as part of the 2016 budget, according to U.S. media.
The move will boost the country's renewable energy industry in the coming years through credit reductions especially in the solar and wind sectors and its installed capacity.
According to the budget proposal, wind power facilities to be built in 2017 will see a credit reduction of 20 percent. For projects proposed construction in 2018, a 40 percent tax reduction will be applied, while a 60 percent reduction will be given to projects being built in 2019.
The budget sees credit reductions for solar energy as well. For solar projects, if the plants' properties are constructed between 2017 and 2019, a 30 percent credit reduction will be enforced; during 2020, they will benefit from a 26 percent credit reduction; and if they are built during 2021, there will be a 22 percent credit reduction.
The U.S. solar industry is expected to generate nearly 8,000 megawatts (MW) in 2015 with the aim of reaching a total of 28,000 MW installed capacity in total, according to the U.S.' Solar Energy Industries Association.
The U.S.' wind energy installed capacity was 69,471 MW by the end of this October, according to data from the American Wind Energy Association's third quarter market report for 2015.
The renewable proposals would be a win for the Democrats if the 2016 budget passes the Congress as voting is expected to occur on Friday.
Meanwhile, the Republicans are aiming to lift the U.S.' four-decade-old self-imposed ban on exporting domestically produced crude oil through a spending bill in the 2016 budget proposal.
By Ovunc Kutlu