Capstone Turbine Corp. announced that its personnel worked to pass the federal Investment Tax Credit for microturbines and combined heat and power projects that was extended for four years in the new budget legislation.
The tax credit, which applies to purchases of the Van Nuys company’s natural gas-powered microturbines, will be phased out through the end of 2021, dropping from 10 percent, to 8 percent and then to 6 percent in the final year.
The tax credit has accelerated deployment of microturbines, the company said.
Capstone Chief Executive Darren Jamison said extending the credit is a key component, along with a weak U.S. dollar and high crude oil prices, to help drive revenue growth for Capstone.
“We will work with our U.S. based distribution partners to immediately rerun the economics on all pending CHP (combined heat and power) projects to show customers the new tax impact on their project,” Jamison said in a prepared statement.
Shares in Capstone (CPST) closed Monday down 2 cents, or just more than 2 percent, to 94 cents on the Nasdaq.