New England Senate Democrats are pressuring the Treasury Department to release guidance on Inflation Reduction Act offshore wind credits.
The lawmakers — led by Massachusetts Democratic Sen. Ed Markey — sent a letter about two bonus tax credits to incentivize projects developed in traditionally fossil fuel-reliant communities and that use domestically produced materials.
“Without a clear understanding of whether — and to what extent — offshore wind projects would qualify for the domestic content and energy community bonus tax credits, developers may be forced to bid at unnecessarily high prices or may be unable to secure needed project financing due to an inflationary market and congested supply chain,” the senators wrote.
Rising inflation and an immature supply chain have spiked costs for U.S. offshore wind ventures, leading to broken contracts and two canceled wind farms off the coast of New Jersey.
