Business Network cites state and regional support of offshore wind as essential, after ITC tax credit left out of federal tax extension bill

“While we are disappointed that the Investment Tax Credit (ITC) for offshore wind energy was not included in the end-of-year federal legislation, we will continue to work with our supporters in the House and the Senate to pass a 30% ITC bill in 2020,” said Liz Burdock, President & CEO of the Business Network for Offshore Wind today after analyzing yesterday’s announcement by the House Rules Committee. 

“The 10 East Coast offshore wind projects are expected to continue through the development process and stay on track for their operational due dates. However, the expiration of the federal tax credit will place additional demands on states to provide funding for regional and state-level supply chain development, as well as accelerate investments in workforce development, job training and port infrastructure.”

Burdock noted that the lack of a continuing federal ITC means a strong domestic supply chain is required to replace the financial benefits of the existing investment tax credits: “Federal tax credits not just encourage investment and keep costs down for ratepayers, they help ease the additional costs of establishing a new industry in a country without an established supply chain. Once again it is critical that states lead our energy and economic growth and fill the void left by the federal government.”  

Some early U.S. offshore wind projects may be able to qualify in time to use the alternative Production Tax Credit. Used mostly by land-based projects, which go up faster and have revenue earlier, the PTC was extended in the budget deal announced yesterday at 60% of its value for wind energy projects that start construction by the end of 2020. Offshore projects that qualify would be allowed to treat it as an investment tax credit for one more year.