Washington (March 8, 2024) – Senator Edward J. Markey (D-Mass.), chair of the Senate Environment and Public Works Subcommittee on Clean Air, Climate, and Nuclear Safety, today led a letter with five Senate colleagues to the Department of Treasury (Treasury) and the Internal Revenue Service (IRS), requesting that they provide information on the expected timeline for the final guidance on the domestic content and energy communities bonus tax credits. The senators ask for Treasury and IRS to quickly release final and strengthened guidance, so that states can maximize ratepayer savings and contribute to a clean energy economy.
Cosigners include Senators Elizabeth Warren (D-Mass.), Richard Blumenthal (D-Conn.), Chris Murphy (D-Conn.), Sheldon Whitehouse (D-R.I.), and Jack Reed (D-R.I.).
In their letter to Treasury and IRS, the senators wrote, “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. Guidance will create much needed certainty for the offshore wind industry, especially when it comes to procurement.”
The senators continued, “Governors of Massachusetts, Connecticut, Maryland, New Jersey, New York, and Rhode Island have already written to you reiterating the importance of quickly finalizing the domestic content and energy community guidance and warning that inaction or delay could threaten offshore wind projects in their states. We share their concerns and urge Treasury and the IRS to promptly provide information on the guidance release timeline and strengthen the final guidance for the energy community bonus tax credit.”
Senator Markey is a longtime supporter of offshore wind. In November 2023, Senator Markey reintroduced the Offshore Wind Jobs and Opportunity Act, which would support offshore wind workforce development that meets the needs of the offshore wind and maritime industry and helps create good-paying jobs. Senator Markey’s Offshore Wind American Manufacturing Act, which provides tax incentives for offshore wind components and vessels, was included in the Inflation Reduction Act.
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