ON June 26, 2019, Senators Tom Carper (D-DE) and Susan Collins (R-ME), introduced the Incentivizing Offshore Wind Power Act, which would extend the investment tax credit (ITC) for offshore wind power investments. An existing tax credit has been winding down since 2017, and is set to expire at the end of 2019.
The bipartisan bill is co-sponsored by Sherrod Brown (D-OH), Ben Cardin (D-MD), Chirs Coons (D-DE), Angus King (I-ME), Bob Menendez (D-NJ), Jack Reed (D-RI), Brian Schatz (D-HI), Elizabeth Warren (D-MA) and Sheldon Whitehouse (D-RI).
The bill would extend the investment tax credit at 30% for offshore wind projects that start construction by the later of 2027 or the year after the U.S. has installed 3000 MW of new offshore wind capacity. It would apply to any facility located in the Great Lakes, the territorial seas of the United States, the exclusive economic zone of United States, and the outer Continental Shelf of the United States.
The proposed bill has received support from the Environmental Defense Fund and the American Wind Energy Association. It has been introduced the day after Senators Markey (D-MA), Whitehouse (D-RI) and Congressman Jim Langevin (R-RI) re-introduced the Offshore Wind Incentives for New Development Act, which has very similar provisions. Strong corporate support for offshore wind developmen and the need for new sources of power to meet renewable portfolio standards in coastal states make it probable that one of these bills will ultimately be passed and extend the offshore wind tax credit.