Investment Tax Credit for offshore wind turbines left out of initial tax package from House Rules Committee
It is imperative that Members of Congress add a five-year extension of the 30% Investment Tax Credit (ITC) to build more wind turbines offshore, along with the extension of the Production Tax Credit for land-based wind energy, to a proposal that emerged from the House Rules Committee this morning.
“If the Investment Tax Credit for offshore wind is added in the final federal budget, Congress will unleash a trillion dollars of investment in a new American industry,” said Liz Burdock, CEO & President of the Business Network for Offshore Wind, the leading nonprofit advocate for offshore wind energy at the state, federal, and global levels.
“As it stands, Congress is foregoing thousands of well-paying steady jobs in port cities that need them, and business opportunities for thousands of U.S. companies that are eager to supply this new sector,” Burdock said.
“While I am deeply disappointed in today’s development, the offshore wind industry remains a huge economic opportunity with bipartisan support and we will continue to work with our member companies to advocate for this emerging renewable energy sector,” added Burdock.
Wind turbines will typically be placed over 10 miles offshore, to capture strong winds that blow almost continuously over the open ocean. Barely visible from shore but still close to major cities hungry for affordable electricity at peak hours, these turbines offer affordable electricity that will never run out and will help reduce global warming.
According to the government’s Wind Vision, launched under the Bush administration and updated in 2015, wind energy can be the leading source of electricity in America by midcentury, and over a fifth of that will be located off both coasts and in the Great Lakes. So far there is only one offshore wind farm in America, off Block Island, Rhode Island. Many are now under development along the East Coast and in Lake Michigan – over 8,000 megawatts (MW) worth so far – and developers are eyeing the deep waters of the West Coast for floating turbines.
The House Ways & Means Committee last month released a comprehensive clean energy tax package that included the tax credit extension for offshore wind energy. The package announced today now goes to the full House as part of the federal spending plan for 2020. As it stands, the investment tax credit for offshore wind has not yet been included.
About the Business Network for Offshore Wind
The Business Network for Offshore Wind is the leading 501(c)(3) nonprofit organization solely focused on developing the US offshore wind industry and advancing its supply chain. We are not a trade association of many voices; we are one leading voice for the offshore wind business community, in the states, at the federal level, and globally. We bring together developers, policymakers, academia, global experts and hundreds of member businesses for critical discussions and unprecedented networking opportunities. We empower our members with the education, tools, and connections necessary to participate in this booming industry. For information on joining, click here.