Today’s guidance from the Internal Revenue Service means that more Americans will enjoy the benefits of offshore wind.
For Immediate Release: March 22, 2024
Media Contact: Luke Jeanfreau | [email protected] | 504-302-8079
BALTIMORE — The Oceantic Network, the leading organization working to advance offshore wind and other ocean renewable industries and their supply chains, celebrates today’s announcement from the Biden-Harris Administration and its Internal Revenue Service (IRS). The updated guidance for implementation of the Inflation Reduction Act’s Energy Communities Bonus will allow for a greater number of offshore wind projects bringing clean energy and economic prosperity to American communities. The new guidance clarifies that certain project operations located within energy communities will now qualify for the bonus, as will projects with multiple points of interconnection (at least one of which is within an energy community), and introduces two new classifications to the list of qualified communities.
An offshore wind project’s onshore operations and maintenance activity can now qualify for the Energy Communities Bonus, provided the project’s Supervisory Control and Data Acquisition (SCADA) system is located within an energy community. The SCADA system is the nerve center for an offshore wind project and creates long-term high paying jobs throughout the 25+ year project life cycle. The new guidance also clarifies that projects with multiple points of interconnection can qualify for the credit if one of them is within an energy community, an important development for the advancement of shared transmission infrastructure. Finally, two more North American Industry Classification System (NAICS) codes have been added to the list of eligible industrial activities to define an energy community, one related to the existence of oil pipeline infrastructure, and another related to natural gas distribution infrastructure.
The following statement can be attributed to Liz Burdock, founder and CEO of Oceantic Network:
“In a move to bolster the transition from fossil fuel to clean energy, the eligibility expansion for the 10% Energy Communities credit creates an easier path to market for many offshore wind projects. Crucially, it channels a greater portion of project funding into the development of ports, laying a robust foundation for supply chain advancement. By taking a more holistic approach to the Energy Communities Bonus, consistent with the intent of the legislation, the Biden-Harris Administration has ensured that local ratepayers will see cost reductions and long-term, high wage jobs will be created in the areas that need it most.”
Additional Information:
- IRS issues guidance for energy communities and the bonus credit program under the Inflation Reduction Act
- Treasury Releases Additional Guidance to Drive Investment to Energy Communities As Part of President Biden’s Investing in America Agenda
- Full IRS Notice
For more information or to arrange an interview with the Network, contact Luke Jeanfreau at [email protected] or 504-302-8079.
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As a non-profit organization, the Oceantic Network’s driving purpose is to inform, coordinate, and mobilize human ingenuity, enterprise, and labor to take advantage of the urgent need to tap the vast offshore wind and renewable energy resources that lie in the world’s oceans. The collective, coordinated efforts of our 600+ members equip communities and nations to accelerate the transition to clean energy and create economic opportunities.
