H.R. 2133: Lakes Before Turbines Act

This bill, known as the Lakes Before Turbines Act, seeks to modify a specific tax incentive for offshore wind energy projects. Here’s a summary of what the bill intends to do:

Purpose

The main purpose of the bill is to amend the Internal Revenue Code related to investment tax credits (ITC) for offshore wind facilities. Specifically, it aims to restrict the eligibility for these tax credits for certain offshore wind projects located in the inland navigable waters of the United States, such as the Great Lakes.

Key Provisions

• Modification of Tax Credit Eligibility: The bill proposes a change to section 48 of the Internal Revenue Code, which outlines the investment tax credit for renewable energy projects. By adding a clause that specifies the exclusion of the Great Lakes from the areas qualifying for this tax credit, the bill effectively limits financial incentives for wind energy projects in that region.
• Effective Date: The changes made by this bill would apply to taxable years that begin after December 31, 2022. This means that any offshore wind projects seeking the investment tax credit would need to be located outside the designated waters after this date to qualify for the credit.

Implications

If passed, this legislation may influence the development and financing of offshore wind projects in the Great Lakes and nearby inland navigable waters, potentially shifting the focus of investments to other areas where the tax credit remains available.

Relevant Companies

• None found