A bill to amend the Internal Revenue Code of 1986 to provide a credit for the production of energy from deep water offshore wind.

Summary: Deepwater Offshore Wind Incentive Act - Amends the Internal Revenue Code to allow a general business tax credit for the production of energy from a deep water offshore wind facility. Makes such credit equal to the product of 3.04 cents and the kilowatt hours of electricity produced at a facility during a 10-year period and sold by a taxpayer to an unrelated person during the taxable year. Defines "deep water offshore wind facility" as facility that uses wind to produce electricity, operates in 60 meters or more of water, is located within the internal or territorial waters of the United States, and is placed in service after the enactment of this Act and before January 1, 2030.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Deepwater Offshore Wind Incentive 
Act''.

SEC. 2. CREDIT FOR PRODUCTION OF ENERGY FROM DEEP WATER OFFSHORE WIND.

    (a) Production Credit.--
            (1) In general.--Subpart D of part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 is amended by 
        adding at the end the following new section:

``SEC. 45R. CREDIT FOR PRODUCTION FOR DEEP WATER OFFSHORE WIND.

    ``(a) General Rule.--For purposes of section 38, the deep water 
offshore wind production credit of any taxpayer for any taxable year is 
equal to the product of--
            ``(1) 3.04 cents, multiplied by
            ``(2) the kilowatt hours of electricity--
                    ``(A) produced by the taxpayer at a deep water 
                offshore wind facility during the 10-year period 
                beginning on the date the facility was originally 
                placed in service, and
                    ``(B) sold by the taxpayer to an unrelated person 
                during the taxable year.
    ``(b) National Limitation.--
            ``(1) In general.--The amount of credit which would (but 
        for this subsection) be allowed with respect to any facility 
        for any taxable year shall not exceed the amount which bears 
        the same ratio to such amount of credit as--
                    ``(A) the national megawatt capacity limitation 
                allocated to the facility, bears to
                    ``(B) the total megawatt nameplate capacity of such 
                facility.
            ``(2) Amount of national limitation.--The aggregate amount 
        of national megawatt capacity limitation allocated by the 
        Secretary under paragraph (3) shall not exceed 6,000 megawatts.
            ``(3) Allocation of limitation.--The Secretary shall 
        allocate the national megawatt capacity limitation in the 
        following manner:
                    ``(A) The Secretary shall allocate the first 5,000 
                megawatts of the national megawatt capacity limitation 
                to facilities by giving priority to facilities which 
                will be placed in service at the earliest date.
                    ``(B) The Secretary shall allocate the remaining 
                megawatts of the national megawatt capacity limitation 
                by taking into account the technology of the facility.
            ``(4) Regulations.--Not later than 6 months after the date 
        of the enactment of this section, the Secretary shall prescribe 
        such regulations as may be necessary or appropriate to carry 
        out the purposes of this subsection. Such regulations shall 
        provide a certification process under which the Secretary, 
        after consultation with the Secretary of Energy, shall approve 
        and allocate the national megawatt capacity limitation.
    ``(c) Deep Water Offshore Wind Facility.--For purposes of this 
section--
            ``(1) In general.--The term `deep water offshore wind 
        facility' means any facility which--
                    ``(A) is owned by the taxpayer,
                    ``(B) uses wind to produce electricity,
                    ``(C) operates in 60 meters or more of water,
                    ``(D) is located within the internal or territorial 
                waters of the United States, and
                    ``(E) is placed in service after the date of the 
                enactment of this section and before January 1, 2030.
            ``(2) Exceptions.--Such term shall not include any facility 
        if--
                    ``(A) a credit has been allowed to such facility 
                under section 45 for such taxable year or any prior 
                taxable year,
                    ``(B) a credit has been allowed with respect to 
                such facility under section 46 by reason of section 
                48(a) for such taxable or any preceding taxable year, 
                or
                    ``(C) a grant has been made with respect to such 
                facility under section 1603 of the American Recovery 
                and Reinvestment Act of 2009.
    ``(d) Other Rules to Apply.--Rules similar to the rules of 
paragraphs (1), (3), (4), and (5) of section 45(e) shall apply for 
purposes of this section.
    ``(e) Inflation Adjustment.--
            ``(1) In general.--In the case of any calendar year after 
        2010, the 3.04 cent amount in subsection (a)(1) shall be 
        adjusted by multiplying such amount by the inflation adjustment 
        factor for the calendar year in which the sale occurs. If any 
        amount as increased under the preceding sentence is not a 
        multiple of 0.01 cent, such amount shall be rounded to the 
        nearest multiple of 0.01 cent.
            ``(2) Inflation adjustment factor.--For purposes of 
        paragraph (1), the term `inflation adjustment factor' has the 
        meaning given such term under section 45(e)(2)(B), except that 
        `calendar year 2010' shall be substituted for `calendar year 
        1992'.''.
            (2) Credit made part of general business credit.--Section 
        38(b) of the Internal Revenue Code of 1986 is amended--
                    (A) by striking ``plus'' at the end of paragraph 
                (34),
                    (B) by striking the period at the end of paragraph 
                (35) and inserting ``, plus'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(36) the deep water offshore wind production credit 
        determined under section 45R(a).''.
            (3) Coordination with other benefits.--
                    (A) Section 45 production credit.--Section 45(e) of 
                the Internal Revenue Code of 1986 is amended by adding 
                at the end the following new paragraph:
            ``(12) Coordination with deep water offshore wind credit.--
        No credit shall be allowed under subsection (a) with respect to 
        any qualified facility described in subsection (d)(1) if a 
        credit has been allowed to such facility under section 45J for 
        such taxable year or any prior taxable year.''.
                    (B) Investment credit.--Subsections (B) and (C) of 
                section 48(d)(5)(B) of such Code are each amended by 
                inserting ``or section 45R'' after ``section 45''.
                    (C) Grants.--Section 48(d)(1) of such Code is 
                amended by striking ``or section 45'' and inserting ``, 
                section 45, or section 45R''.
            (4) Clerical amendment.--The table of sections for subpart 
        D of part IV of subchapter A of chapter 1 of the Internal 
        Revenue Code of 1986 is amended by adding at the end the 
        following:

``Sec. 45R. Credit for production for deep water offshore wind.''.
    (b) Option To Elect Investment Credit in Lieu of Production 
Credit.--Section 48(a)(5)(C)(i) of the Internal Revenue Code of 1986 is 
amended by inserting ``, or any deep water offshore wind facility 
(within the meaning of section 45R) if such facility is placed in 
service before 2030'' before the period at the end.
    (c) Effective Date.--The amendments made by this section shall 
apply to facilities placed in service after the date of the enactment 
of this Act.