Legislators propose tax credit extension for offshore wind projects
Sens. Edward J. Markey (D-MA) and Sheldon Whitehouse (D-RI), along with Rep. Jim Langevin (D-RI), recently reintroduced legislation that would extend tax credits in order to support the growth of offshore wind energy in the United States.
The Offshore Wind Incentives for New Development (Offshore WIND) Act would extend the 30 percent Investment Tax Credit for offshore wind through 2025.
The Production Tax Credit (PTC) and Investment Tax Credit (ITC) for wind are currently in effect until 2019. Due to the long amount of time need to complete an offshore wind project, however, the Department of Energy (DOE) has projected that no additional offshore wind projects will qualify for the credits before they expire.
“The WIND Act puts the ‘win’ in wind energy,” Markey, a member of the Environment and Public Works Committee, said. “Offshore wind projects are a crucial part of America’s energy future. Offshore wind has the potential to create tens of thousands of jobs in Massachusetts and up and down the East Coast, encourage local innovation, and reduce carbon pollution. But in order to realize this potential, we need to provide this nascent industry the long-term certainty in the tax code that it needs.”
The first U.S. offshore wind project began operations in December 2016 near Block Island, Rhode Island. Deepwater Wind began developing the project nearly nine years ago.
“I’m proud to say that America’s first offshore wind farm is powering Rhode Island homes and businesses with clean, renewable energy. Building the wind farm off Block Island has been a boost for our economy, and those turbines are already reducing our region’s carbon footprint,” Whitehouse, who is also a member of the Environment and Public Works Committee, said. “This bill will extend an important investment tax credit to expand the benefits of offshore wind we’re enjoying in Rhode Island to coastal communities across the country.”
Sens. Jeff Merkley (D-OR), Elizabeth Warren (D-MA), Jack Reed (D-RI), Cory Booker (D-NJ) and Sherrod Brown (D-OH) are cosponsoring the legislation.
