II 

112TH CONGRESS 

1ST SESSION S. 1397 

To amend the Internal Revenue Code of 1986 to provide for an investment 

tax credit related to the production of electricity from offshore wind. 

IN THE SENATE OF THE UNITED STATES 

JULY 21, 2011 

Mr. CARPER (for himself, Ms. SNOWE, Mr. MENENDEZ, Ms. COLLINS, Mr. 

COONS, Mr. WHITEHOUSE, Mr. BROWN of Ohio, Mr. REED, Mr. LAUTENBERG, and Mr. CARDIN) introduced the following bill; which was read 

twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

for an investment tax credit related to the production 

of electricity from offshore wind. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Incentivizing Offshore 

5 Wind Power Act’’. 

6 SEC. 2. QUALIFYING OFFSHORE WIND FACILITY CREDIT. 

7 (a) IN GENERAL.—Section 46 of the Internal Rev8 enue Code of 1986 is amended by striking ‘‘and’’ at the 

9 end of paragraph (5), by striking the period at the end 


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1 of paragraph (6), and by adding at the end the following 

2 new paragraph: 

3 ‘‘(7) the qualifying offshore wind facility cred4 it.’’. 

5 (b) AMOUNT OF CREDIT.—Subpart E of part IV of 

6 subchapter A of chapter 1 is amended by inserting after 

7 section 48D the following new section: 

8 ‘‘SEC. 48E. CREDIT FOR OFFSHORE WIND FACILITIES. 

9 ‘‘(a) IN GENERAL.—For purposes of section 46, the 

10 qualifying offshore wind facility credit for any taxable year 

11 is an amount equal to 30 percent of the qualified invest12 ment for such taxable year with respect to any qualifying 

13 offshore wind facility of the taxpayer. 

14 ‘‘(b) QUALIFIED INVESTMENT.— 

15 ‘‘(1) IN GENERAL.—For purposes of subsection 

16 (a), the qualified investment for any taxable year is 

17 the basis of eligible property placed in service by the 

18 taxpayer during such taxable year which is part of 

19 a qualifying offshore wind facility. 

20 ‘‘(2) CERTAIN QUALIFIED PROGRESS EXPENDI21 TURES RULES MADE APPLICABLE.—Rules similar to 

22 the rules of subsections (c)(4) and (d) of section 46 

23 (as in effect on the day before the enactment of the 

24 Revenue Reconciliation Act of 1990) shall apply for 

25 purposes of this section. 


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1 ‘‘(c) DEFINITIONS.—For purposes of this section— 

2 ‘‘(1) QUALIFYING OFFSHORE WIND FACILITY.— 

3 ‘‘(A) IN GENERAL.—The term ‘qualifying 

4 offshore wind facility’ means an offshore facility 

5 using wind to produce electricity. 

6 ‘‘(B) OFFSHORE FACILITY.—The term 

7 ‘offshore facility’ means any facility located in 

8 the inland navigable waters of the United 

9 States, including the Great Lakes, or in the 

10 coastal waters of the United States, including 

11 the territorial seas of the United States, the ex12 clusive economic zone of United States, and the 

13 outer Continental Shelf of the United States. 

14 ‘‘(2) ELIGIBLE PROPERTY.—The term ‘eligible 

15 property’ means any property— 

16 ‘‘(A) which is— 

17 ‘‘(i) tangible personal property, or 

18 ‘‘(ii) other tangible property (not in19 cluding a building or its structural compo20 nents), but only if such property is used as 

21 an integral part of the qualifying offshore 

22 wind facility, and 

23 ‘‘(B) with respect to which depreciation (or 

24 amortization in lieu of depreciation) is allow25 able. 


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1 ‘‘(d) QUALIFYING CREDIT FOR OFFSHORE WIND FA2 CILITIES PROGRAM.— 

3 ‘‘(1) ESTABLISHMENT.— 

4 ‘‘(A) IN GENERAL.—Not later than 180 

5 days after the date of the enactment of this sec6 tion, the Secretary, in consultation with the 

7 Secretary of Energy and the Secretary of the 

8 Interior, shall establish a qualifying credit for 

9 offshore wind facilities program to consider and 

10 award certifications for qualified investments el11 igible for credits under this section to qualifying 

12 offshore wind facility sponsors. 

13 ‘‘(B) LIMITATION.—The total amount of 

14 megawatt capacity for offshore facilities with 

15 respect to which credits may be allocated under 

16 the program shall not exceed 3,000 megawatts. 

17 ‘‘(2) CERTIFICATION.— 

18 ‘‘(A) APPLICATION PERIOD.—Each appli19 cant for certification under this paragraph shall 

20 submit an application containing such informa21 tion as the Secretary may require beginning on 

22 the date the Secretary establishes the program 

23 under paragraph (1). 

24 ‘‘(B) PERIOD OF ISSUANCE.—An applicant 

25 which receives a certification shall have 5 years 


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1 from the date of issuance of the certification in 

2 order to place the facility in service and if such 

3 facility is not placed in service by that time pe4 riod, then the certification shall no longer be 

5 valid. 

6 ‘‘(3) SELECTION CRITERIA.—In determining 

7 which qualifying offshore wind facilities to certify 

8 under this section, the Secretary shall— 

9 ‘‘(A) take into consideration which facili10 ties will be placed in service at the earliest date, 

11 and 

12 ‘‘(B) take into account the technology of 

13 the facility that may lead to reduced industry 

14 and consumer costs or expand access to off15 shore wind. 

16 ‘‘(4) REVIEW, ADDITIONAL ALLOCATIONS, AND

17 REALLOCATIONS.— 

18 ‘‘(A) REVIEW.—Periodically, but not later 

19 than 4 years after the date of the enactment of 

20 this section, the Secretary shall review the cred21 its allocated under this section as of the date of 

22 such review. 

23 ‘‘(B) ADDITIONAL ALLOCATIONS AND RE24 ALLOCATIONS.—The Secretary may make addi25 tional allocations and reallocations of credits 


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1 under this section if the Secretary determines 

2 that— 

3 ‘‘(i) the limitation under paragraph 

4 (1)(B) has not been attained at the time of 

5 the review, or 

6 ‘‘(ii) scheduled placed-in-service dates 

7 of previously certified facilities have been 

8 significantly delayed and the Secretary de9 termines the applicant will not meet the 

10 timeline pursuant to paragraph (2)(B). 

11 ‘‘(C) ADDITIONAL PROGRAM FOR ALLOCA12 TIONS AND REALLOCATIONS.—If the Secretary 

13 determines that credits under this section are 

14 available for further allocation or reallocation, 

15 but there is an insufficient quantity of quali16 fying applications for certification pending at 

17 the time of the review, the Secretary is author18 ized to conduct an additional program for appli19 cations for certification. 

20 ‘‘(5) DISCLOSURE OF ALLOCATIONS.—The Sec21 retary shall, upon making a certification under this 

22 subsection, publicly disclose the identity of the appli23 cant and the amount of the credit with respect to 

24 such applicant. 


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1 ‘‘(e) DENIAL OF DOUBLE BENEFIT.—A credit shall 

2 not be allowed under this section with respect to any facil3 ity if— 

4 ‘‘(1) a credit has been allowed to such facility 

5 under section 45 for such taxable year or any prior 

6 taxable year, 

7 ‘‘(2) a credit has been allowed with respect to 

8 such facility under section 46 by reason of section 

9 48(a) or 48C(a) for such taxable or any preceding 

10 taxable year, or 

11 ‘‘(3) a grant has been made with respect to 

12 such facility under section 1603 of the American Re13 covery and Reinvestment Act of 2009.’’. 

14 (c) CONFORMING AMENDMENTS.— 

15 (1) Section 49(a)(1)(C) of the Internal Revenue 

16 Code of 1986 is amended— 

17 (A) by striking ‘‘and’’ at the end of clause 

18 (v), 

19 (B) by striking the period at the end of 

20 clause (vi) and inserting ‘‘, and’’, and 

21 (C) by adding after clause (vi) the fol22 lowing new clause: 

23 ‘‘(vi) the basis of any property which 

24 is part of a qualifying offshore wind facil25 ity under section 48E.’’. 


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1 (2) The table of sections for subpart E of part 

2 IV of subchapter A of chapter 1 of the Internal Rev3 enue Code of 1986 is amended by inserting after the 

4 item relating to section 48D the following new item: 

‘‘48E. Credit for offshore wind facilities.’’. 

5 (d) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to periods after the date of the 

7 enactment of this Act, under rules similar to the rules of 

8 section 48(m) of the Internal Revenue Code of 1986 (as 

9 in effect on the day before the date of the enactment of 

10 the Revenue Reconciliation Act of 1990). 

Æ 


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