US expands bonus tax credit to eligible offshore wind ports

The US Treasury Department on Friday issued guidance that expands the eligibility of offshore wind in the energy communities bonus tax credit.

The Treasury Department and Internal Revenue Service (IRS) issued initial guidance on the bonus for energy communities in April 2023. The new guidance offers more options for offshore projects that locate their operation and maintenance ports or have at least one point of interconnection in these communities to claim the bonus tax credit, the American Clean Power Association (ACP) pointed out as it welcomed the step.

“This guidance will spur the growth of offshore wind by encouraging significant private sector investments and new jobs in historically disadvantaged communities,” said ACP chief executive Jason Grumet.

“Including ports in this bonus tax credit will revitalise hard working communities that have long been engines of economic growth,” Grumet added.

The energy community bonus is available to developers locating projects in historical energy communities. They can receive up to 10 percentage points on top of the Investment Tax Credit (ITC) and an increase of 10% for the Production Tax Credit (PTC).

Choose your newsletter by Renewables Now. Join for free!