To amend the Internal Revenue Code of 1986 to disallow the production tax credit and investment tax credit for offshore wind facilities placed in service in the inland navigable waters of the United States or the coastal waters of the United States.
Impact
The impact of HB 2187 could be significant, as it effectively removes financial incentives that have been instrumental in promoting the development of offshore wind facilities. This change may deter investment in offshore wind projects, slowing growth in this renewable sector and potentially leading to increased reliance on fossil fuels. The amendment applies to energy produced and properties placed in service after December 31, 2025, indicating a transitional period for stakeholders to adapt to the new regulatory framework.
Summary
House Bill 2187 seeks to amend the Internal Revenue Code of 1986 to disallow both the production tax credit and investment tax credit for offshore wind facilities that are placed in service in the inland navigable waters and the coastal waters of the United States. The bill is framed as a measure to limit incentives for offshore wind developments that may not align with broader economic or environmental goals. This legislation represents a notable shift in federal support for renewable energy production, particularly in the offshore wind sector, which has been receiving increasing attention and investment in recent years.
Contention
There are likely to be points of contention surrounding HB 2187, particularly from stakeholders in the renewable energy sector who view the bill as a setback for clean energy initiatives. Proponents of offshore wind energy argue that tax credits are pivotal in fostering innovation and expansion in the renewable sector. Critics of the bill may view it as a reflection of political pressure against renewable energy policies, accentuating the ongoing debate about energy independence, climate change, and the future of energy production in the U.S.
Related
To amend the Internal Revenue Code of 1986 to disallow the production tax credit and investment tax credit for offshore wind facilities placed in service in the inland navigable waters of the United States or the coastal waters of the United States.
To amend the Internal Revenue Code of 1986 to cover into the treasury of the Virgin Islands revenue from tax on fuel produced in the Virgin Islands and entered into the United States.
To amend the Internal Revenue Code of 1986 to allow certain credits and deductions to be taken as a refundable tax credit by Puerto Rico businesses or residents, and to extend such credits and deductions to possessions of the United States.