The American Wind Energy Association (AWEA) extends its support to two new bills introduced in the U.S. Senate this week, which would both extend the federal Investment Tax Credit (ITC) for offshore wind energy. The legislation comes at a critical time for offshore wind in America, as energy developers prepare to start construction on the first wave of large-scale projects.
“Without Congressional action, the federal Investment Tax Credit for offshore wind is set to phase out this year — just as the first wave of large-scale offshore wind projects prepare to begin construction,” said Tom Kiernan, CEO, AWEA. “At this critical moment for a new U.S. energy industry, policy stability is more important than ever.”
AWEA supports two bills that would achieve tax policy parity for offshore wind.
- The Offshore Wind Incentives for New Development Act introduced by Senators Markey (D-MA), Whitehouse (D-RI), and Congressman Jim Langevin (RI-02)
- The Incentivizing Offshore Wind Power Act introduced by Senators Carper (D-DE) and Collins (R-ME) would extend the ITC at 30 percent of the project’s total value for six years and eight years respectively. The biggest difference between the bills relates to how they are positioned in the tax code.
“We appreciate and strongly support proposals that would extend the Investment Tax Credit for offshore wind, jumpstarting the projected $70 billion build-out of America’s offshore wind infrastructure, delivering large amounts of reliable, homegrown clean energy, and tens of thousands of jobs to the U.S. economy,” added Kiernan.
Promoting investment in offshore wind will strengthen and diversify American energy production. With world-class resource potential off the East Coast, West Coast, and in the Great Lakes, offshore wind is uniquely well-suited to meet consumer demand for large amounts of reliable clean energy near America’s largest population centers.
There’s also a huge opportunity for U.S. supply chain businesses, including those with experience in offshore oil and gas, to construct and service offshore wind farms. According to the University of Delaware’s Special Initiative on Offshore Wind, building 18.6 GW of offshore wind capacity by 2030 would create a nearly $70 billion opportunity for businesses in the industry supply chain. And investing in offshore wind at scale will help revitalize coastal infrastructure and create tens of thousands of high-skilled, well-paying careers for Americans.