U.S. East Coast senators have submitted to Congress two separate bipartisan bills aimed at extending investment tax credits (ITCs) at 30% of project value for as much as eight years.
The bills are designed to support industrial growth and job creation in the early years of U.S. offshore wind deployment.
Under the current legislation, the ITC for offshore wind drops from 18% for projects starting in 2018, to 12% for projects in 2019 and 0% from 2020.
On July 2, U.S. Senators Susan Collins (Republican(R)-Maine) and Tom Carper (Democrat(D)-Delaware) introduced a bill that would extend the ITC at 30% for projects starting construction by the end of 2026, or the year after U.S. installed capacity surpasses 3 GW if this occurs later.
The legislation is co-sponsored by Senator Angus King (I-ME) along with Senators Sherrod Brown (D-OH), Ben Cardin (D-MD), Chris Coons (D-DE), Bob Menendez (D-NJ), Jack Reed (D-RI), Brian Schatz (D-HI), Elizabeth Warren (D-MA) and Sheldon Whitehouse (D-RI), Collins and Carper said in a statement.
A week earlier, Senators Edward J. Markey (D-Massachusetts) and Sheldon Whitehouse (D- Rhode Island), and Congressman Jim Langevin (Rhode Island-02) had reintroduced legislation that would extend the ITC at 30% for six years.
Senators co-sponsoring this bill include Jack Reed (D-R.I.), Elizabeth Warren (D-Mass.), and Cory Booker (D-N.J.), the proponents of the bill said in a statement.
“At this critical moment for a new U.S. energy industry, policy stability is more important than ever,” Tom Kiernan, CEO, American Wind Energy Association, said.
“We appreciate and strongly support proposals that would extend the ITC 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,” he said.
The value of the U.S. East Coast offshore wind supply chain is forecast to hit $68 billion by 2030, the University of Delaware said in a report earlier this year.
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