# Plain Language Summary: Offshore Wind Tax Credit Restrictions

This bill would eliminate two major tax breaks for offshore wind energy projects built in U.S. waters. Currently, companies that build offshore wind facilities can claim a production tax credit (which gives them money back for each unit of electricity they generate) and an investment tax credit (which lets them deduct a portion of their construction costs from their taxes). This bill would take away both of those incentives for any offshore wind project placed in service in inland navigable waters or coastal waters of the United States.

In practical terms, this makes offshore wind projects significantly more expensive for developers and investors. Without these tax credits, companies would need to charge more for the electricity they produce to make their projects financially viable, or they might decide not to build them at all. This could slow down the development of offshore wind farms along the U.S. coasts and in inland waterways, making it harder for the country to expand renewable energy sources in these locations.

The bill would primarily affect energy companies and investors involved in offshore wind development, as well as consumers in coastal areas who might see fewer renewable energy options or higher electricity costs. It could also impact jobs in the offshore wind industry, which has been growing as a source of clean energy. The change would essentially shift the economics of offshore wind projects by removing federal support that currently helps make them competitive with other energy sources.

To amend the Internal Revenue Code of 1986 to disallow the production tax credit and investment tax credit for offshore wind facilities placed in service in the inland navigable waters of the United States or the coastal waters of the United States.