Congress quietly kills offshore wind tax credits, protecting fossil fuels
H.R. 2187 — 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. · Filed by Pat Fallon (R-TX) · 4 cosponsors · Introduced Mar 18, 2025 · Referred to committee
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What it does
This bill removes federal tax credits for offshore wind facilities built in U.S. inland navigable waters and coastal waters. It strips four tax incentives—the investment tax credit, renewable resources production credit, clean electricity production credit, and clean electricity investment credit—from offshore wind projects in these zones, effective January 1, 2026. The result: offshore wind developers lose billions in potential tax breaks, making projects in U.S. waters far less economically viable.
Why we flagged it
The bill's operative mechanism is selective tax-credit denial targeting only offshore wind in U.S. waters, while leaving onshore renewables and other energy sources untouched. This asymmetric treatment protects incumbent fossil fuel and onshore energy interests by making a specific renewable technology uncompetitive.
What the text implies
- Offshore wind is the fastest-growing renewable resource in U.S. coastal zones; removing credits effectively halts development in federal waters, concentrating energy production inland and offshore in foreign jurisdictions.
- The bill does not touch onshore wind, solar, or other renewables—only offshore wind—suggesting targeted protection of competing energy sectors (fossil fuels, onshore wind, or both).
The full analysis lists 4 implications of this text.
Who stands to gain
fossil fuel energy producers; natural gas utilities; coal power operators