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US senators announce offshore wind manufacturing tax credit bill

Senators Cory Booker (D-NJ), Ed Markey (D-MA), Robert Menendez (D-NJ), and Elizabeth Warren (D-MA) today announced the Offshore Wind American Manufacturing Act, which would drive domestic manufacturing and offshore wind deployment.

Offshore wind bill

The offshore wind supply chain currently exists mainly in Europe, China, and South Korea. With the growing number of offshore wind leases offered in the US, the Offshore Wind American Manufacturing Act would give a much-needed boost to US manufacturing with an investment tax credit and a production tax credit for qualified offshore wind components and dedicated offshore wind vessels.

Warren said:

The offshore wind industry is critical to our efforts to combat climate change, generate clean power, and boost our economy. 

The Offshore Wind American Manufacturing Act will help create more good jobs by building a made in America supply chain for all of the components that are needed for these large transformational projects.

Here’s how it would work, according to a summary emailed by Senator Ed Markey’s office:

This legislation would create a 30% investment tax credit for qualified facilities that manufacture offshore wind components and subcomponents that 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 that ranges from 2 to 5 cents per watt multiplied by the total rated capacity of the turbine. The production tax credit varies by components including blades, towers, nacelles, generators, gearboxes, foundations, and related vessels.

The Offshore Wind American Manufacturing Act would prioritize American workers and require prevailing wages for laborers involved in the construction and expansion of qualified manufacturing facilities or in the manufacture of qualified offshore wind products. The full investment tax credit would be available until December 31, 2028 and phase out annually afterward. The production tax credit would be available until December 31, 2030.

Most importantly, the Offshore Wind American Manufacturing Act would help create thousands of manufacturing jobs and ensure that the United States meets President Biden’s offshore wind goal of 30 GW by 2030.

Industry reaction

Unsurprisingly, and rightly so, the clean energy/offshore wind sector completely backs this bill. 30 GW of offshore wind by 2030 is a tight deadline, and this sector needs to motor.

Jason Walsh, the executive director of BlueGreen Alliance, which unites labor unions and environmental organizations, said:

Without the domestic manufacturing to support offshore wind, the US will be importing the materials and components we need to build out America’s offshore wind industry.

We need policies, like those in the Offshore Wind Manufacturing Act of 2021, to ensure we’re building back better and manufacturing America’s energy future here in the United States.

David Hardy, the CEO of offshore wind industry leader Ørsted Offshore North America, based in Boston, said:

We recognize the importance of expediting the establishment of a sustainable US-based offshore wind supply chain that will not only enable clean energy production but will also boost the transition to domestic manufacturing and create good-paying jobs across the country.

And Steve Dayney, head of offshore North America at Siemens Gamesa Renewable Energy, said:

As we continue to work alongside our partners to deliver on the promise of high-quality jobs for our local communities, this bill offers crucial support to bridge the divide across state-level markets and bring cost-effective climate solutions to American shores.

Read more:

Photo: Ørsted

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Avatar for Michelle Lewis Michelle Lewis

Michelle Lewis is a writer and editor on Electrek and an editor on DroneDJ, 9to5Mac, and 9to5Google. She lives in White River Junction, Vermont. She has previously worked for Fast Company, the Guardian, News Deeply, Time, and others. Message Michelle on Twitter or at Check out her personal blog.