Renewable Energy Memo

March 16, 2010

New Legislation for Offshore Wind Tax Credits

Filed under: CleanTech investing,wind — Tags: , , , , — Jonathan B. Wilson @ 6:04 am

Two bills have recently been introduced in the Senate that would expand or extend tax credit programs for offshore wind projects.

Senate Bill 3062 sponsored by Sen. Tom Carper (D-Del) would extend existing tax credits for offshore wind projects until January 1, 2020.

The Deepwater Offshore Wind Incentive Act (S. 3064 sponsored by Senators Carper and and Susan Collins (R-Maine)  would offer tax credits to “deepwater offshore” wind projects.  Some project developers believe that deepwater projects may be able to circumvent some of the environmental and NIMBY resistance tocloser-in offshore wind projects. 

S. 3064 would increase the Section 45 production tax credit for “deepwater offshore” wind projects to 3.04 cents per kWh, with an inflation adjustment for years after 2010.  The bill would also extend the placed in service date for qualifying projects to 2030 for Section 48 investment tax credit purposes. 

The bill defines “deepwater offshore” projects as any project that is located in water with a depth of 60 meters or more (regardless of whether the project is in the internal or territorial waters of the U.S.) 

Both bills have been referred to the Senate Finance Committee.

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