Senator of Delaware Tom Carper and Maine Senator Susan Collins have introduced a bill expected to initiate investments in the U.S. offshore wind market by extending tax credits.
The Incentivizing Offshore Wind Power Act would extend the investment tax credit (ITC) at 30% for offshore wind farms that begin construction by 1 January 2027 or the year after the U.S. reaches 3GW of new capacity, whichever is later.
The bill is said to make sure that ITC is available until the local offshore wind industry is established and is expected to lower consumer costs by retroactively eliminating the current tax credit phase-down.
“In a few short months, critical tax credits that help spur U.S. offshore wind development and manufacturing and help bring down consumer costs will expire, just as the industry is starting to take off in this country,” said Carper .
“The Incentivizing Offshore Wind Power Act provides a long-term extension of the offshore wind investment tax credit to ensure offshore wind – and the manufacturing and construction jobs that go along with the industry – are a reality in this country.”
Other co-sponsors include Senators Sherrod Brown of Ohio, Ben Cardin of Maryland, Chris Coons of Delaware, Angus King of Maine, Bob Menendez of New Jersey, Jack Reed and Sheldon Whitehouse of Rhode Island, Brian Schatz of Hawaii and Elizabeth Warren of Massachusetts.
The news comes as Senator of Massachusetts Edward J. Markey, Rhode Island Senator Sheldon Whitehouse and Congressman Jim Langevin reintroduced the Offshore WIND Act that would extend the 30% ITC through 2025.