US Senators Introduce Offshore Wind Manufacturing Tax Credit Bill
Four US Senators have introduced a bill to create offshore wind manufacturing tax credits aimed at advancing the manufacturing and offshore wind deployment in the USA.
With the growing number of offshore wind leases offered in the United States, the Offshore Wind American Manufacturing Act is said to boost domestic manufacturing through an investment tax credit and a production tax credit for qualified offshore wind components and dedicated offshore wind vessels.
The legislation would create a 30 per cent investment tax credit for qualified facilities that manufacture offshore wind components and subcomponents that would reduce the high capital costs required to build, upgrade, or retool a facility.
The investment tax credit would be complemented by a new production tax credit that ranges from 2 to 5 cents per watt multiplied by the total rated capacity of the turbine. The production tax credit varies by components including blades, towers, nacelles, generators, gearboxes, foundations, and related vessels.
Senator Edward J. Markey (D-Mass.), and cosponsors Senators Robert Menendez (D-N.J.), Cory Booker (D-N.J.), and Elizabeth Warren (D-Mass.), are behind the Offshore Wind American Manufacturing Act.
”Offshore wind is a booming market, but without effective manufacturing policy, American workers will be left behind,” said Senator Markey.
”The Offshore Wind American Manufacturing Act helps ensure that each offshore wind turbine deployed in the United States over the next 10 years is made in America and made by Americans receiving family sustaining wages. Our clean energy future is blowing in the offshore wind—it’s time to put those winds to work for American industry.”
The full investment tax credit would be available until 31 December 2028 and phase out annually afterward. The production tax credit would be available until 31 December 2030.
”We appreciate Senator Markey’s leadership in accelerating America’s transition to renewable energy,” said David Hardy, CEO of Ørsted Offshore North America, headquartered in Boston.
”As the industry leader, we recognize the importance of expediting the establishment of a sustainable U.S.-based offshore wind supply chain that will not only enable clean energy production but will also boost the transition to domestic manufacturing and create good-paying jobs across the country. The Offshore Wind American Manufacturing Act will play an integral role in achieving these shared objectives, and we look forward to working with Senator Markey to advance this important legislation.”
The Offshore Wind American Manufacturing Act is expected to help create thousands of manufacturing jobs and ensure that the United States meets President Biden’s offshore wind goal of 30 GW of offshore wind by 2030, the Senators said.
”The Offshore Wind American Manufacturing Act presents the opportunity for the United States to make its mark as a competitive player in global race for offshore wind supply chain investments,” said Steve Dayney, Head of Offshore North America at Siemens Gamesa Renewable Energy Inc.
”Siemens Gamesa applauds Senator Markey’s leadership in proposing solutions that can help manufacturers build stronger, more sustainable supply chains here in the US. As we continue to work alongside our partners to deliver on the promise of high-quality jobs for our local communities, this bill offers crucial support to bridge the divide across state-level markets and bring cost-effective climate solutions to American shores.”