The US Treasury Department has issued new guidance expanding the eligibility of offshore wind projects for the energy communities bonus tax credit. This guidance, welcomed by the American Clean Power Association (ACP), 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 Treasury Department and Internal Revenue Service (IRS) initially issued guidance on the bonus for energy communities in April 2023. The expansion of eligibility is expected to encourage significant private sector investments and create new jobs in historically disadvantaged communities, according to ACP chief executive Jason Grumet.
Grumet stated, “This guidance will spur the growth of offshore wind by encouraging significant private sector investments and new jobs in historically disadvantaged communities. Including ports in this bonus tax credit will revitalize hard-working communities that have long been engines of economic growth.”
The energy community bonus is available to developers locating projects in historical energy communities, offering up to 10 percentage points on top of the Investment Tax Credit (ITC) and an increase of 10% for the Production Tax Credit (PTC). The expanded eligibility criteria aim to support the growth of offshore wind projects while benefiting communities with a history of energy production.
