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.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
This bill eliminates federal tax credits for offshore wind energy facilities that are located in U.S. inland navigable waters (like the Great Lakes) or coastal waters. Specifically, it removes both the investment tax credit (which helps finance initial construction) and the production tax credit (which provides ongoing payments based on electricity generated) for these offshore wind projects placed in service after December 31, 2025.
Who Benefits and How
The U.S. Treasury benefits by reducing tax expenditures - the government will no longer forgo revenue from these tax credits for qualifying offshore wind projects in these waters. Taxpayers indirectly benefit as federal revenue loss from these credits is eliminated, though the amounts saved would need to be quantified by specific project data.
Who Bears the Burden and How
Offshore wind energy developers and operators in inland navigable waters and coastal waters face the burden. They lose valuable tax incentives that help make offshore wind projects financially viable - the investment tax credit can cover up to 30% of project costs, while production tax credits provide per-kilowatt-hour payments over 10 years. This makes new offshore wind projects in these locations significantly less economically attractive and may halt development entirely.
Key Provisions
• Strikes provisions allowing investment tax credits for offshore wind facilities
• Excludes offshore wind facilities in inland navigable or coastal U.S. waters from the clean electricity production credit
• Defines "disqualified offshore wind facility" as any offshore wind facility in inland navigable waters or coastal waters of the United States
• Applies to energy produced and property placed in service after December 31, 2025
• Does not affect deep-ocean offshore wind (beyond coastal waters)
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
This bill disallows production tax credit and investment tax credit for offshore wind facilities placed in service in inland navigable waters or coastal waters of the US.
Key Policy Areas
Energy, Finance
Primary Purpose
This bill disallows production tax credit and investment tax credit for offshore wind facilities placed in service in inland navigable waters or coastal waters of the US.
Policy Domains
Sponsors
Pat Fallon
R-TX | Primary Sponsor
Legislative Progress
IntroducedMr. Fallon (for himself and Mr. Gooden) introduced the following …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Offshore wind energy developers and operators in inland/coastal waters
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of Energy
Key Definitions
Terms defined in this bill
A tax credit for investments in renewable energy projects, including offshore wind facilities.
An offshore wind facility located in the inland navigable waters of the United States or in the coastal waters of the United States.
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
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