It would create a 30% investment tax credit for up to 3000MW of offshore wind projects selected by the US Treasury with the proviso that they are commissioned within five years.
The credit would be the same 30% tax credit that is granted to many other US renewable energy sources.
The proposed five year window takes into account the longer siting, permitting and financing process required by offshore wind projects.
Current federal tax credit provision for offshore wind expires in 2012.
There are at least three offshore wind generation projects proposed for both state and federal waters off the coast of New Jersey.
Congressman LoBlondo, who is also a member of the House Renewable Energy and Energy Efficiency Caucus, said: "For several years we have looked to the Jersey Shore as a potential source of renewable wind energy.
"In South Jersey, projects continue to move forward with the promise of increased domestic energy and creating jobs.
"Our legislation will further encourage the nation to follow New Jersey’s lead and move towards wind energy, thus reducing our reliance on foreign oil".
The Bill would amend the internal revenue code of 1986 to provide for an investment tax credit related to the production of electricity from offshore wind.
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