GAI13108

S.L.C.

113TH CONGRESS 1ST SESSION

S. ll

To amend the Internal Revenue Code of 1986 to provide for an investment tax credit related to the production of electricity from offshore wind.

IN THE SENATE OF THE UNITED STATES

llllllllll Mr. CARPER (for himself, Ms. COLLINS, Mr. COONS, Mr. LAUTENBERG, Mr. WHITEHOUSE, Mr. BROWN, Mr. REED, Mr. KING, Mrs. GILLIBRAND, Mr. MENENDEZ, Mr. COWAN, Mr. CARDIN, and Ms. WARREN) introduced the following bill; which was read twice and referred to the Committee on llllllllll

A BILL
To amend the Internal Revenue Code of 1986 to provide for an investment tax credit related to the production of electricity from offshore wind. 1 Be it enacted by the Senate and House of Representa-

2 tives of the United States of America in Congress assembled, 3 4

SECTION 1. SHORT TITLE.

This Act may be cited as the Incentivizing Offshore

5 Wind Power Act. 6 7

SEC. 2. QUALIFYING OFFSHORE WIND FACILITY CREDIT.

(a) IN GENERAL.Section 46 of the Internal Rev-

8 enue Code of 1986 is amended

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2 1 2 3 4 5 6 7 8 9 it.. (b) AMOUNT

OF

(1) by striking and at the end of paragraph (5), (2) by striking the period at the end of paragraph (6) and inserting , and, and (3) by adding at the end the following new paragraph: (7) the qualifying offshore wind facility cred-

CREDIT.Subpart E of part IV of

10 subchapter A of chapter 1 is amended by inserting after 11 section 48D the following new section: 12 13
SEC. 48E. CREDIT FOR OFFSHORE WIND FACILITIES.

(a) IN GENERAL.For purposes of section 46, the

14 qualifying offshore wind facility credit for any taxable year 15 is an amount equal to 30 percent of the qualified invest16 ment for such taxable year with respect to any qualifying 17 offshore wind facility of the taxpayer. 18 19 20 21 22 23 24 25 (b) QUALIFIED INVESTMENT. (1) IN
GENERAL.For

purposes of subsection

(a), the qualified investment for any taxable year is the basis of eligible property placed in service by the taxpayer during such taxable year which is part of a qualifying offshore wind facility. (2) CERTAIN
QUALIFIED PROGRESS EXPENDI-

TURES RULES MADE APPLICABLE.Rules

similar to

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3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section. (c) DEFINITIONS.For purposes of this section (1) QUALIFYING (A) IN
OFFSHORE WIND FACILITY.

GENERAL.The

term qualifying

offshore wind facility means an offshore facility using wind to produce electricity. (B) OFFSHORE
FACILITY.The

term

offshore facility means any facility located in the inland navigable waters of the United States, including the Great Lakes, or in the coastal waters of the United States, including the territorial seas of the United States, the exclusive economic zone of United States, and the outer Continental Shelf of the United States. (2) ELIGIBLE
PROPERTY.The

term eligible

property means any property (A) which is (i) tangible personal property, or (ii) other tangible property (not including a building or its structural components), but only if such property is used as

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4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 an integral part of the qualifying offshore wind facility, and (B) with respect to which depreciation (or amortization in lieu of depreciation) is allowable. (d) QUALIFYING CREDIT
CILITIES FOR

OFFSHORE WIND FA-

PROGRAM. (1) ESTABLISHMENT. (A) IN

GENERAL.Not

later than 180

days after the date of the enactment of this section, the Secretary, in consultation with the Secretary of Energy and the Secretary of the Interior, shall establish a qualifying credit for offshore wind facilities program to consider and award certifications for qualified investments eligible for credits under this section to qualifying offshore wind facility sponsors. (B) LIMITATION.The total amount of megawatt capacity for offshore facilities with respect to which credits may be allocated under the program shall not exceed 3,000 megawatts. (2) CERTIFICATION. (A) APPLICATION
PERIOD.Each

appli-

cant for certification under this paragraph shall submit an application containing such informa-

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5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 tion as the Secretary may require beginning on the date the Secretary establishes the program under paragraph (1). (B) PERIOD
OF ISSUANCE.An

applicant

which receives a certification shall have 5 years from the date of issuance of the certification in order to place the facility in service and if such facility is not placed in service by that time period, then the certification shall no longer be valid. (3) SELECTION
CRITERIA.In

determining

which qualifying offshore wind facilities to certify under this section, the Secretary shall (A) take into consideration which facilities will be placed in service at the earliest date, and (B) take into account the technology of the facility that may lead to reduced industry and consumer costs or expand access to offshore wind. (4) REVIEW,
REALLOCATIONS. ADDITIONAL ALLOCATIONS, AND

(A) REVIEW.Periodically, but not later than 4 years after the date of the enactment of this section, the Secretary shall review the cred-

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6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 its allocated under this section as of the date of such review. (B) ADDITIONAL
ALLOCATIONS.The ALLOCATIONS AND RE-

Secretary may make addi-

tional allocations and reallocations of credits under this section if the Secretary determines that (i) the limitation under paragraph (1)(B) has not been attained at the time of the review, or (ii) scheduled placed-in-service dates of previously certified facilities have been significantly delayed and the Secretary determines the applicant will not meet the timeline pursuant to paragraph (2)(B). (C) ADDITIONAL
PROGRAM FOR ALLOCA-

TIONS AND REALLOCATIONS.If

the Secretary

determines that credits under this section are available for further allocation or reallocation, but there is an insufficient quantity of qualifying applications for certification pending at the time of the review, the Secretary is authorized to conduct an additional program for applications for certification.

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7 1 2 3 4 5 6 (5) DISCLOSURE
OF ALLOCATIONS.The

Sec-

retary shall, upon making a certification under this subsection, publicly disclose the identity of the applicant and the amount of the credit with respect to such applicant. (e) DENIAL
OF

DOUBLE BENEFIT.A credit shall

7 not be allowed under this section with respect to any facil8 ity if 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (v), (B) by striking the period at the end of clause (vi) and inserting , and, and (1) a credit has been allowed to such facility under section 45 for such taxable year or any prior taxable year, (2) a credit has been allowed with respect to such facility under section 46 by reason of section 48(a) or 48C(a) for such taxable or any preceding taxable year, or (3) a grant has been made with respect to such facility under section 1603 of the American Recovery and Reinvestment Act of 2009.. (c) CONFORMING AMENDMENTS. (1) Section 49(a)(1)(C) of the Internal Revenue Code of 1986 is amended (A) by striking and at the end of clause

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8 1 2 3 4 5 6 7 8 9 (C) by adding after clause (vi) the following new clause: (vii) the basis of any property which is part of a qualifying offshore wind facility under section 48E.. (2) The table of sections for subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 48D the following new item:
48E. Credit for offshore wind facilities..

10

(d) EFFECTIVE DATE.The amendments made by

11 this section shall apply to periods after the date of the 12 enactment of this Act, under rules similar to the rules of 13 section 48(m) of the Internal Revenue Code of 1986 (as 14 in effect on the day before the date of the enactment of 15 the Revenue Reconciliation Act of 1990).