Congress approves tax incentives for offshore wind

In: Windfarms
23/12/2020
The US Congress has approved five-year extensions of critical tax incentives for offshore wind. It was part of the Offshore Wind Incentives for New Development (WIND) Act (S. 1957) which was included as part of the year-end spending package.

The provision would extend the Investment Tax Credit (ITC) for offshore wind facilities at 30 percent through 2025, as called for in the Offshore WIND Act. Introduced in June 2019 by Senators Markey and Whitehouse, and Rep. Langevin, the Offshore WIND Act aims to spur the growth of offshore wind energy in the United States by extending tax credits for the renewable energy industry.

In addition to extending the offshore wind ITC, the omnibus budget package extends the ITC for solar and the production tax credit (PTC) for onshore wind. It makes permanent energy efficiency improvements for commercial buildings and extends a credit of up to $2,000 for the purchase of energy efficient homes, as well as extends credits for non-business energy property purchases. The package also includes a five-year extension of the tax used to fund the Oil Spill Liability Trust Fund.

“Offshore wind has the potential to change the game on climate change, and those winds of change are blowing off the shores of Massachusetts,”
said Senator Markey. “Offshore wind projects are a crucial part of America’s clean energy future, creating tens of thousands of jobs up and down the East Coast and reducing carbon pollution. In our effort to harness this potential, we will now be able to provide this burgeoning industry the long-term certainty in the tax code that it needs. Our workers and our manufacturers stand ready to meet the demands of the offshore wind industry, and our economy stands ready to reap the winds of success. My big thanks to Senator Whitehouse and Rep. Langevin for their continued partnership and dedication to this legislation.”

“Rhode Island’s first-in-the-nation offshore wind farm charted a course for wind energy in American waters,”
said Senator Whitehouse. “Now our growing offshore wind industry will have the certainty to follow Rhode Island’s lead.  That means huge investment in coastal communities and jobs, plus lots of clean, affordable energy for consumers.  I’m proud to have worked with Sen. Markey and Rep. Langevin to get this legislation over the finish line.”

“As home to the United States’ first offshore wind farm, my district has seen first-hand the power and benefits of renewable energy, and it’s important that other communities are able to tap into it as well,”
said Rep. Langevin. “The extension of these vital incentives will strengthen our ability to produce clean energy, create good-paying jobs, reduce harmful emissions, and make communities more resilient. I thank Senators Whitehouse and Markey for their leadership in advancing this legislation and helping to build a greener, more sustainable future.”
 

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