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.
Summary
HB1462 would amend the Internal Revenue Code to deny federal tax incentives for certain offshore wind projects. Specifically, it would bar offshore wind facilities located in the inland navigable waters or coastal waters of the United States from qualifying for the investment tax credit, the renewable resources production tax credit, and the clean electricity production credit. The bill targets both existing and future tax credit provisions by making conforming changes across multiple sections of the tax code.
The bill’s practical effect would be to remove federal tax support for offshore wind facilities in U.S. inland and coastal waters for property placed in service and energy produced after December 31, 2025. That would likely increase project costs and reduce the financial viability of affected offshore wind developments, while leaving other renewable energy projects and offshore wind facilities outside those waters unaffected. Because the measure amends the Internal Revenue Code, its impact would be on federal tax law rather than state law, though it could indirectly affect state-level clean energy and coastal energy development plans.
Impact
HB1462 would change federal tax law by excluding certain offshore wind facilities from eligibility for the investment tax credit, the production tax credit, and the clean electricity production credit. It would amend Sections 48, 45, and 45Y of the Internal Revenue Code, and the changes would apply to energy produced and property placed in service after December 31, 2025. The bill would primarily affect offshore wind developers, investors, utilities, and related supply-chain participants by reducing or eliminating tax-based project incentives for facilities in inland navigable waters and coastal waters.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or vote sentiment in the available materials. Based on the bill text and sponsorship, the measure appears to reflect a skeptical or oppositional stance toward offshore wind subsidies, rather than a broadly supportive clean-energy framing. The bill was introduced and referred to the House Committee on Ways and Means, with no further action shown in the provided record.
Contention
The main point of contention is the policy choice to remove federal tax incentives from offshore wind facilities in U.S. inland navigable waters and coastal waters. Supporters of the bill would likely argue that offshore wind should not receive tax preferences, while opponents would likely contend that the credits are important for financing renewable energy, meeting clean electricity goals, and supporting coastal energy development. Because the bill specifically targets offshore wind rather than renewable energy generally, the dispute is likely to center on energy policy, climate policy, and the role of federal subsidies in shaping the power mix.
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.