House Introduces Bill to Boost Offshore Wind Manufacturing
A bill introduced Tuesday in the U.S. House of Representatives aims to boost offshore wind construction and manufacturing through the investment tax credit (ITC) and production tax credit (PTC). H.R. 7388, The Offshore Wind American Manufacturing Act, would create a 30% ITC for qualified facilities that manufacture offshore wind components through Dec. 31, 2028, followed by a reduction of 30% for property placed in service in 2029, 65% for property placed in service in 2030 and 100% for property placed in service after Dec. 31, 2030. The bill would also create a new PTC that would range from approximately 2 to 5 cents per watt multiplied by the total rated capacity of the turbine, with components such as blades, towers, generators, gearboxes and foundations contributing to variable factors. This PTC would expire Dec. 31, 2030. Both would apply to properties or components placed in service after Aug. 1, 2021. Proponents say as a vehicle for job growth, the credit would see a boost in areas where prevailing wages are paid for laborers involved in construction and expansion of manufacturing facilities or where there is unionized labor in the manufacturing of offshore wind components.
Deepen your knowledge of ITCs, PTCs and more about the renewable energy sector at the Novogradac 2022 Spring Renewable Energy and Environmental Tax Credits Conference May 19-20 at The Ritz-Carlton in Denver.