Potential federal tax breaks for offshore wind

By Ramona du Houx - March 1st, 2013 

Incentivizing Offshore Wind Power Act a bill to boost offshore wind energy generation is co-sponsored in the U.S. Senate by Tom Carper of Delaware and Susan Collins of Maine. A House version of the bill is also being introduced.

The proposals provide financial incentives for investment in offshore wind energy. They seek to extend investment tax credits for the first 3,000 megawatts of offshore wind facilities placed into service, or about 600 wind turbines.

UMaine and Stratoil energy have plans to build floating offshore floating wind farms. The two have a memorandum of understanding to share technological expertise. Plans for offshore wind development started during the Baldacci administration and permitting from Maine was streamlined in 2010.

The tax credits are necessary for offshore wind energy technology because of the longer lead-time for the permitting and construction of offshore wind turbines, compared to onshore stationary wind energy turbines.