Four US Democratic Senators have introduced a bill that aims to drive domestic manufacturing and offshore wind deployment.
The Offshore Wind American Manufacturing Act would create a 30% investment tax credit for qualified facilities that manufacture offshore wind components and subcomponents.
It 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 (PTC) that ranges from two to five US cents per watt multiplied by the total rated capacity of the turbine.
The PTC varies by components including blades, towers, nacelles, generators, gearboxes, foundations, and related vessels.
The full investment tax credit would be available until 31 December 2028 and phase out each year afterward.
The production tax credit would be available until 31 December 2030.
The legislation was introduced by Senators Edward Markey, Robert Menendez, Cory Booker and Elizabeth Warren.
It builds off the success from the 48C Advanced Manufacturing Tax Credit, the sponsors said.
Markey said: “Offshore wind is a booming market, but without effective manufacturing policy, American workers will be left behind.
“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.”