Sen. Ed Markey (D-Mass.) introduced the “Offshore Wind American Manufacturing Act” with Sens. Robert Menendez, Cory Booker and Elizabeth Warren. It would create tax credits for making offshore wind parts and vessels in the USA.
What the bill would do
- A 30% investment tax credit for factories that build, upgrade or retool to make offshore wind components.
- A production tax credit of 2 to 5 cents per watt of turbine capacity, depending on the part. It covers blades, towers, nacelles, generators, gearboxes, foundations and related vessels.
- The investment credit would run through December 31, 2028, then phase out. The production credit would run through December 31, 2030.
The sponsors said the bill would help meet the goal of 30 GW of offshore wind by 2030. Ørsted and Siemens Gamesa backed it.
“Offshore wind is a booming market, but without effective manufacturing policy, American workers will be left behind.”
Sen. Ed Markey
FAQ
What credits would the bill create?
A 30% investment tax credit and a production tax credit of 2 to 5 cents per watt.
Who introduced it?
Sen. Ed Markey with Sens. Menendez, Booker and Warren.
How long would the credits last?
The investment credit through 2028 and the production credit through 2030.
Source & credit
Source: Offshore WIND, August 12, 2021: “US Senators Introduce Offshore Wind Manufacturing Tax Credit Bill”.