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Offshore Wind Manufacturing Tax Credit Bill Announced by US Senators

Senators Cory Booker (D-NJ), Ed Markey (D-MA), Robert Menendez (D-NJ), and Elizabeth Warren (D-MA) introduced the Offshore Wind American Manufacturing Act today, which aims to boost domestic manufacturing and Offshore wind deployment. Currently, the wind supply chain is concentrated in Europe, China, and South Korea.

The Offshore Wind American Manufacturing Act would provide a much-needed boost to US manufacturing by providing an investment tax credit and a production tax credit. It was for qualified  wind components and dedicated offshore wind vessels, in response to the growing number of  wind leases available in the US.

Offshore Wind Manufacturing Tax Credit Bill Announced by US SenatorsWarren said, “The Offshore wind industry is critical to our efforts to combat climate change, generate clean power, and boost our economy. The Wind American Manufacturing Act will help create more good jobs by building a made in America supply chain for all of the components that are needed for these large transformational projects.”This bill would establish a 30% investment tax credit for eligible Offshore wind component and subcomponent manufacturers, lowering the high capital expenditures associated with the construction, upgrade, or retooling of a plant. A new production tax credit of 2 to 5 cents per watt multiplied by the total rated capacity of the turbine would be added to the investment tax credit.

Blades, towers, nacelles, generators, gearboxes, foundations, and related vessels all qualify for different production tax credits. The Offshore Wind American Manufacturing Act would put American workers first and require prevailing wages for labourers working on the development and expansion of qualifying manufacturing facilities or the manufacture of qualified Offshore wind goods.The entire investment tax credit would be accessible until December 31, 2028, after which it would begin to phase away annually. Until December 31, 2030, the production tax credit would be available.

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