Congress approves tax incentives for offshore wind
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.”
