The U.S. Department of the Treasury and Internal Revenue Service released new guidance on the Investment Tax Credit, providing the private sector with additional clarity in making investment decisions for offshore wind energy projects.
Wind Energy Technologies Office
November 28, 2023
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The U.S. Department of the Treasury and Internal Revenue Service (IRS) released new guidance on the Investment Tax Credit, providing the private sector with additional clarity in making investment decisions for offshore wind energy projects. The Notice of Proposed Rulemaking (NPRM) provides transparency around the eligibility of power conditioning and transfer equipment like subsea export cables, as well as certain power conditioning equipment located in onshore substations. The NPRM also includes proposed rules to support the development of utility-scale, long-duration energy storage and transmission upgrades, which are vital to ensuring grid reliability as utilities transition to renewable sources like wind.
Treasury and the IRS will accept comments on the NPRM for 60 days and will carefully consider all comments as part of the rulemaking process. For a summary of additional incentives and tax credits available for wind energy, see our funding factsheet.