The House passed a tax extenders package this week that includes a one-year extension of the production tax credit (PTC) for wind but failed to move forward an investment tax credit (ITC) provision for offshore wind power.
The PTC is currently set to be eliminated. Wind projects that begin construction on or before Dec. 31, 2019, and are placed into service by the end of 2021 are eligible, but the PTC will phase out completely after that.
The extenders bill, however, would extend the tax credit at a 40% reduction of the full PTC value ($0.025/kWh) for projects that start construction in 2020.
The extenders package is expected to be signed into law by the end of the week.
Missing from the legislation is any type of tax credit for offshore wind projects. It was hoped that Congress would add a five-year extension of the 30% investment tax credit (ITC) to the year-end extenders bill, but that provision did not make it into the legislation.
“If the investment tax credit for offshore wind is added in the final federal budget, Congress will unleash a trillion dollars of investment in a new American industry,” said Liz Burdock, CEO and president of the Business Network for Offshore Wind.
“As it stands, Congress is foregoing thousands of well-paying steady jobs in port cities that need them, and business opportunities for thousands of U.S. companies that are eager to supply this new sector,” she added.
“While I am deeply disappointed in today’s development, the offshore wind industry remains a huge economic opportunity with bipartisan support, and we will continue to work with our member companies to advocate for this emerging renewable energy sector.”