The American Wind Energy Association (AWEA) issued the following
statement in support of two 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, American Wind Energy Association.
“At this critical moment for a new U.S. energy industry, policy
stability is more important than ever. 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.”
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), as well as 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.
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 gigawatts 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.
