The U.S. Senate has passed the landmark Inflation Reduction Act of 2022 (IRA), which includes provisions related to the production tax credit (PTC), offshore wind, and wind power supply chain manufacturing as a part of $369 billion in funding aimed squarely at supporting U.S. clean energy programs.
In addition to the wind PTC being extended for projects that start construction before Jan. 1, 2025, the bill introduces new tax credits for certain renewable energy projects placed in service in 2025 or later that start construction before 2033.
“This unprecedented investment in clean energy will supercharge America’s clean energy economy and keep the United States within striking distance of our climate goals,” comments Heather Zichal, CEO of the American Clean Power Association.
“This is a generational opportunity for clean energy after years of uncertainty and delay,” she adds. “The IRA will lower consumer costs, enhance grid reliability and strengthen the nation’s energy security. It will expand our domestic manufacturing base, inject nearly half a trillion dollars into U.S. GDP over the next decade and create more than half a million new jobs – more than doubling today’s clean energy workforce.”
The legislation also includes a new measure – the Advanced Manufacturing Production Credit – designed to provide incentives for the domestic production of wind power components, including turbines, blades and towers.
Senate Democrats have touted that the overall provisions in the legislation will result in a reduction of greenhouse gas emissions of about 40% by 2030, spurred heavily by an increased emphasis on clean energy technologies.
“The legislation’s landmark investment of $369 billion in climate and clean energy programs will help deploy thousands of megawatts of renewable power, create hundreds of thousands of good-paying American jobs, reduce the cost of electric power, and finally put the country on track toward achievement of our climate goals,” says Gregory Wetstone, president and CEO of the American Council on Renewable Energy (ACORE).
For offshore wind specifically, the bill lays out approximately $40 billion for domestic clean energy manufacturing and shipbuilding: a measure that Business Network for Offshore Wind President and CEO Liz Burdock calls “an important down payment that will unleash the vast potential of offshore wind and localize a supply chain on American shores, creating thousands of good-paying jobs.”