The federal government should be allowed to provide tax breaks to solar panel manufacturers and retailers, according to the Heritage Foundation.
The conservative think tank’s annual policy analysis of the solar industry found that tax incentives are particularly effective when companies sell products and services that customers can buy for less.
But even if the federal tax credit program were to expand to cover solar panels and other solar technologies, the program would likely face significant resistance from utilities.
In a new report, Heritage cited two specific scenarios where it said the tax incentives could become more limited in scope.
One is when companies start to make solar panels at home instead of overseas, a shift that would likely result in a loss of tax incentives for the government to provide subsidies.
Another is when the tax credit expires, a scenario that could require a new program.
The tax credits currently offer $25 to $30 per kilowatt-hour for residential and small business customers, depending on the size of their solar panels.
That is more than twice the price of conventional photovoltaic panels.
The solar industry is not the only industry that is being targeted by the government.
In 2018, the Trump administration announced a new tax credit for solar energy production, which Heritage described as a “potentially lucrative” new incentive program for the industry.
But the Trump White House said it would not be offering any additional tax credits in 2019.
The Trump administration has also announced plans to extend the tax credits for a longer time period, in 2019 and 2020.
The White House did not respond to a request for comment.
In 2019, the Solar Energy Industries Association said it could expect a net wind investment of $6.3 billion in the United States, the highest net wind funding since 2009.
But by 2022, the group said, the wind market is expected to fall to about $4.5 billion.
In 2022, Trump signed an executive order to eliminate the incentive for solar companies to produce in the U.S. on federal land, and the president has since called on Congress to revive the incentive program.
While some in the industry have argued that the administration should extend the program in 2020 and 2021, the administration has not done so.
“The current incentives are insufficient, particularly when compared to the size and scope of the industry,” said William Smith, the former head of the Solar Trade Association.
“This will result in an even greater net loss for the American economy.”