Congress has reached a bipartisan deal that contains important relief measures for the renewable energy industry in the US, including a new 30% investment tax credit for offshore wind projects that start construction through 2025
The deal struck on 21 December also includes a two-year extension of the investment tax credit, which is important for solar power, and a one-year extension of the production tax credit, which is important for the onshore wind power industry.
The American Wind Energy Association, which is merging into the American Clean Power Association (ACP) in January 2021, and other renewable energy bodies welcomed the legislation.
ACP chief executive Heather Zichal said, “This bipartisan agreement is a major win for American energy consumers, providing more opportunities for them to receive reliable, zero-carbon, and pollution-free electricity.
“We appreciate that Congress has recognised clean energy’s significant contributions to the economy and role in providing jobs and investment during the recovery from the Covid-19 pandemic.
“As we enter 2021, stable policy support will help ensure that wind and solar can continue providing the backbone of our country’s electricity growth.
“We also applaud Congress for recognising the enormous potential of offshore wind, America’s largest untapped electricity source, as a brand-new provider of jobs for American workers and clean power for American families.”
American Council on Renewable Energy president and chief executive Gregory Wetstone said, “With 13% of the clean energy workforce out of a job this holiday season due to Covid-19, we are grateful that lawmakers included common sense emergency relief measures for the renewables sector in this package.
“Extending the solar and wind tax incentives and making the investment tax credit available for offshore wind projects is a bipartisan vote of support for the renewable industry and the hundreds of thousands of Americans building our clean energy future.
“These policies will help get people back to work, accelerating our economic recovery and achieving greenhouse gas emissions reductions that scientists tell us are necessary to protect our climate.”