Big news for offshore wind in Congress today! The Senate Finance committee just voted on a tax package that includes a one-year extension of the investment tax credit (ITC) for offshore wind.
We’ve been working on this for a long time, so it’s very satisfying that the ITC was included in this package. We’re now in very good shape to be included in the final package that will (hopefully) be voted on by the full Senate after November’s elections.
So why are we so concerned with getting the ITC extended? Because one of the biggest impediments to offshore wind development is financing, and the ITC can help incentivize investment in these expensive but beneficial projects.
Offshore wind farms will be extremely difficult, if not impossible, to finance without an extension of the ITC. As it stands now, the ITC for offshore wind expires at the end of 2012, which is why it’s so important to get this critical tax incentive extended.
Extending the ITC would send a clear signal to investors that America is open for business and committed to producing clean and domestic energy. Today’s vote in the Senate Finance committee brings us one step closer to achieving that goal.
Why is Oceana such a strong advocate for offshore wind, anyway? Here are a few big reasons:
- Because we have seen the damage that drilling for and burning fossil fuels can do to the health of the oceans and marine life, and we must find a better way to satisfy our energy needs.
- Because windmills harness a clean and infinite source of energy, while eliminating the risk of deadly oil spills and creating three times as many jobs as traditional fuel industries.
- Because we believe that the environmentally safe and responsible development of offshore wind is one of the best chances we have as a country to end our addiction to fossil fuels and to finally stop the dangerous practice of oil and gas drilling in our oceans.
- Because we believe that, if sited correctly, offshore wind could be the ocean-based part of the solution to climate change and its "evil twin," ocean acidification.
It’s an exciting time in the world of offshore wind and we’re thrilled to be a part of the action!
Nancy Sopko is an Ocean Advocate at Oceana.