Heinrich Leads Bipartisan Letter Urging Treasury To Clarify Investment Tax Credit Eligibility Of Offshore Wind Assets
WASHINGTON — U.S. Senator Martin Heinrich (D-N.M.) led a bipartisan letter to Secretary of the Treasury Janet Yellen urging the Biden Administration to clarify that offshore wind developers can treat assets leading up to, and including, the onshore transformer and project substation as qualifying for purposes of claiming the investment tax credit (“ITC”).
“Realizing the importance of offshore wind, in 2020 Congress enacted a new 30% ITC to incentivize our domestic offshore wind industry, but Congress did not define the assets that were eligible for this new credit,” wrote the senators. “Instead, Congress relied on existing guidance for other renewable ITCs, such as solar, to help determine qualifying assets.”
The senators added, “The Bluebook released by the Joint Committee on Taxation, JCS-1-22, also contained additional clarifying language stating that subsea cables and voltage transformers are necessary properties to condition electricity for the grid. We encourage Treasury to quickly provide official guidance that incorporates these statements of congressional intent either directly or as an example of qualified property.”
Senator Heinrich was joined by U.S. Senators Susan Collins (R-Maine), Brian Schatz (D-Hawaii), Jack Reed (D-R.I.), Chris Van Hollen (D-Md.), Tom Carper (D-Del.), Ed Markey (D-Mass.), Kirsten Gillibrand (D-N.Y.), Chris Murphy (D-Conn.), Cory Booker (D-N.J.), Elizabeth Warren (D-Mass.), Chris Coons (D-Del.), Dianne Feinstein (D-Calif.), Richard Blumenthal (D-Conn.), Angus King (I-Maine), Sheldon Whitehouse (D-R.I.).
Read the full text of the letter below or by clicking here.
Dear Secretary Yellen:
We write to ask that the Department provide needed official guidance, as soon as practicable, to clarify that offshore wind developers can treat assets leading up to, and including, the onshore transformer and project substation as qualifying for purposes of claiming the investment tax credit (“ITC”). This is consistent with the intent of Congress when it created this credit as part of the Consolidated Appropriations Act of 2021 and is critically important for offshore projects to move forward.
Realizing the importance of offshore wind, in 2020 Congress enacted a new 30% ITC to incentivize our domestic offshore wind industry, but Congress did not define the assets that were eligible for this new credit. Instead, Congress relied on existing guidance for other renewable ITCs, such as solar, to help determine qualifying assets. The Bluebook released by the Joint Committee on Taxation, JCS-1-22, also contained additional clarifying language stating that subsea cables and voltage transformers are necessary properties to condition electricity for the grid. We encourage Treasury to quickly provide official guidance that incorporates these statements of congressional intent either directly or as an example of qualified property.
We look forward to working with you and your staff to secure clarifying guidance expeditiously. Please let us know what we can do to further assist you in this effort.
Read the full text of the letter below or by clicking here.
Dear Secretary Yellen:
We write to ask that the Department provide needed official guidance, as soon as practicable, to clarify that offshore wind developers can treat assets leading up to, and including, the onshore transformer and project substation as qualifying for purposes of claiming the investment tax credit (“ITC”). This is consistent with the intent of Congress when it created this credit as part of the Consolidated Appropriations Act of 2021 and is critically important for offshore projects to move forward.
Realizing the importance of offshore wind, in 2020 Congress enacted a new 30% ITC to incentivize our domestic offshore wind industry, but Congress did not define the assets that were eligible for this new credit. Instead, Congress relied on existing guidance for other renewable ITCs, such as solar, to help determine qualifying assets. The Bluebook released by the Joint Committee on Taxation, JCS-1-22, also contained additional clarifying language stating that subsea cables and voltage transformers are necessary properties to condition electricity for the grid. We encourage Treasury to quickly provide official guidance that incorporates these statements of congressional intent either directly or as an example of qualified property.
We look forward to working with you and your staff to secure clarifying guidance expeditiously. Please let us know what we can do to further assist you in this effort.
Related Issues
