U.S. Sens. Susan Collins, R-Maine, and Tom Carper, D-Del., have introduced a bill that would create an investment tax credit (ITC) redeemable for the first 3 GW of offshore wind facilities placed into service in the U.S.
According to the lawmakers, the bipartisan Incentivizing Offshore Wind Power Act would provide critical financial incentives to encourage investment in offshore wind energy. Specifically, according to the text of the legislation, it would “amend the Internal Revenue Code of 1986 to provide for an investment tax credit related to the production of electricity from offshore wind.”
Considering current tax credits (expiring on Dec. 31, 2019) have been a “lifeline to the nascent offshore industry,” the senators say, this bill would give the industry the certainty needed to plan investments and maximize deployment of the technology.
“By giving private-sector companies the certainty they need, our legislation will help accelerate the development of this promising industry in America and create a new, sustainable source of domestic power,” says Collins.
The legislation defines offshore facilities as any facility located in the inland navigable waters of the U.S., including the Great Lakes, or in the coastal waters of the U.S., including the territorial seas, the exclusive economic zone and the outer Continental Shelf.
According to a summary of the bill, the legislation would also do as follows:
- Require the secretary of the Treasury to consult with the secretaries of the Departments of Energy and Interior when establishing the credit;
- Give the Treasury the authority to make the final decision on who is awarded the tax credit. Once a credit is awarded, companies would have five years to install the project; and
- Prohibit companies from receiving other production or investment tax credits in addition to the offshore wind ITC created under the bill.
“Investing in new offshore wind projects spurs economic growth and has the potential to create millions of good-paying American jobs,” says Carper. “It also helps enhance our national security by encouraging domestic energy production and protects our environment and public health by deploying a cleaner source of energy. I’m proud to partner with Senator Collins to provide this growing industry the certainty it needs to draw private-sector investments in new offshore wind facilities across the country. Making smart investments to move us closer to energy independence is a win-win-win for our economy, our security, our health and our planet.”
Joining Collins and Carper are Sens. Sherrod Brown, D-Ohio; Ben Cardin, D-Md.; Chris Coons, D-Del.; Angus King, I-Maine; Robert Menendez, D-N.J.; Edward Markey, D-Mass.; Jack Reed, D-R.I.; Brian Schatz, D-Hawaii; Elizabeth Warren, D-Mass.; and Sheldon Whitehouse, D-R.I.
