United States

United States

Tax incentive boost for US offshore

Two bills have been introduced into the US Senate to extend tax credits for the offshore wind sector until 2025 or 2027 respectively.

With US offshore still in its infancy, continued tax support is essential
With US offshore still in its infancy, continued tax support is essential

One of the bipartisan proposals, dubbed the Offshore Wind Incentives for New Development Act, would extend the 30% Investment Tax Credit (ITC) for offshore wind projects for six years.

It was introduced by senators Sheldon Whitehouse, Edward Markey — who co-sponsored the Green New Deal — and congressman Jim Langevin.

The same lawmakers previously introduced similar legislation in the Republican-led Senate in 2017 but it failed to pass.

A few days earlier, a similar bi-partisan bill, titled 'Incentivising Offshore Wind Power Act', was introduced by senators Tom Carper and Susan Collins. It would extend the ITC for eight years.

"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," said Markey, from Massachusetts.

"In order to harness this potential, we need to provide this burgeoning industry the long-term certainty in the tax code that it needs," he added.

Tom Kiernan, CEO, American Wind Energy Association, said: "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 prepares to begin construction."

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