Sens. Tom Carper, D-Del., and Susan Collins, R-Maine, have introduced the Incentivizing Offshore Wind Power Act, which would provide critical financial incentives to encourage investment in offshore wind energy. This legislation would create an investment tax credit (ITC) that is redeemable for the first 3,000 MW of offshore wind facilities placed into service, amounting to approximately 600 wind turbines.
According to Carper, Congress has previously offered a temporary credit for investments in wind power, but they are frequently short-lived. The last extension of the ITC expired Dec. 31, 2014.
The credit has been a lifeline to the nascent offshore wind industry, but it has only been extended by periods of one and two years at a time. This leaves the offshore wind industry without the predictability it needs to fully take advantage of the incentive. The Incentivizing Offshore Wind Power Act would give the industry the certainty needed to plan investments and maximize deployment of this clean power technology.
‘Offshore wind energy will mean reliable, homegrown power, cleaner air, and good-paying American jobs – it's a win-win-win,’ Sen. Carper says. ‘Senator Collins and I have introduced this bill to help create the nurturing environment the industry needs to grow and thrive. Instead of yearly extensions of the ITC that fall short, a credit for the first actors will encourage private-sector development of offshore wind facilities across the country and help move the U.S. closer to energy independence.’
The legislation defines offshore facilities as any facility located in the inland navigable waters of the U.S. or in the U.S. coastal waters and the Outer Continental Shelf.
To read a detailed summary of the bill, click here.Â
The legislation is supported by Sens. Cory Booker, D-N.J.; Sherrod Brown, D-Ohio; Ben Cardin, D-Md.; Chris Coons, D-Del.; Kirsten Gillibrand, D-N.Y.; Angus King, I-Maine; Robert Menendez, D-N.J.; Edward Markey, D-Mass.; Barbara Mikulski, D-Md.; Jack Reed, D-R.I.; Brian Schatz, D-Hawaii; Elizabeth Warren, D-Mass.; and Sheldon Whitehouse, D-R.I.