II 

117TH CONGRESS 

1ST SESSION S. 2766 

To amend the Internal Revenue Code of 1986 to provide a manufacturing 

investment tax credit and a production tax credit for manufacturing 

facilities that produce offshore wind turbine components. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 21, 2021 

Mr. MARKEY (for himself, Mr. BOOKER, Mr. MENENDEZ, Ms. WARREN, Mr. 

VAN HOLLEN, and Mr. OSSOFF) 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 

a manufacturing investment tax credit and a production 

tax credit for manufacturing facilities that produce offshore wind turbine components. 

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 ‘‘Offshore Wind Amer5 ican Manufacturing Act of 2021’’. 

6 SEC. 2. OFFSHORE WIND MANUFACTURING CREDIT. 

7 (a) IN GENERAL.—Subpart C of part IV of sub8 chapter A of chapter 1 of the Internal Revenue Code is 


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1 amended by inserting after section 36B the following new 

2 section: 

3 ‘‘SEC. 36C. OFFSHORE WIND MANUFACTURING CREDIT. 

4 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al5 lowed as a credit against the tax imposed by this subtitle 

6 for any taxable year an amount equal to the sum of— 

7 ‘‘(1) the offshore wind manufacturing invest8 ment credit, and 

9 ‘‘(2) the offshore wind manufacturing produc10 tion credit. 

11 ‘‘(b) CREDIT AMOUNTS.—For purposes of this sec12 tion— 

13 ‘‘(1) MANUFACTURING INVESTMENT CREDIT.— 

14 ‘‘(A) IN GENERAL.—The offshore wind 

15 manufacturing investment credit for any tax16 able year is an amount equal to 30 percent of 

17 the qualified investment for such taxable year. 

18 ‘‘(B) QUALIFIED INVESTMENT.—The 

19 qualified investment for any taxable year is the 

20 basis of any advanced offshore wind manufac21 turing property placed in service in the United 

22 States by the taxpayer during such taxable 

23 year. 

24 ‘‘(C) ADVANCED OFFSHORE WIND MANU25 FACTURING PROPERTY.—The term ‘advanced 


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1 offshore wind manufacturing property’ means 

2 property— 

3 ‘‘(i) which is used predominantly to 

4 manufacture or process any qualified off5 shore wind component, 

6 ‘‘(ii) which respect to which deprecia7 tion (or amortization in lieu of deprecia8 tion) is allowable, and 

9 ‘‘(iii) which— 

10 ‘‘(I) is constructed, recon11 structed, or erected by the taxpayer, 

12 or 

13 ‘‘(II) which is acquired by the 

14 taxpayer, if the original use of such 

15 property commences with the tax16 payer. 

17 ‘‘(2) MANUFACTURING PRODUCTION CREDIT.— 

18 ‘‘(A) IN GENERAL.—The offshore wind 

19 manufacturing production credit is an amount 

20 equal to the applicable rate with respect to any 

21 qualified offshore wind component or related 

22 vessel which— 

23 ‘‘(i) is produced by the taxpayer at a 

24 qualified manufacturing facility, and 

25 ‘‘(ii) during the taxable year— 


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1 ‘‘(I) is sold by the taxpayer to— 

2 ‘‘(aa) an unrelated person, 

3 or 

4 ‘‘(bb) a related person for 

5 the use of such person in their 

6 trade or business (with the excep7 tion of any trade or business re8 lated to resale of such offshore 

9 wind component without any sub10 sequent modification, assembly, 

11 or integration into a project), or 

12 ‘‘(II) if not sold, is placed in 

13 service or operation by the taxpayer 

14 or any other person. 

15 ‘‘(B) APPLICABLE RATE.—The applicable 

16 rate is— 

17 ‘‘(i) with respect to any qualified off18 shore wind component, the total rated ca19 pacity (expressed on a per direct current 

20 watt basis) of the completed offshore wind 

21 turbine for which the component is de22 signed, multiplied by— 

23 ‘‘(I) in the case of any blade, 

24 gearbox, generator, or foundation (or 

25 dedicated subcomponent described in 


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1 subsection (c)(1)(A)(ii) thereof), 2 

2 cents, 

3 ‘‘(II) in the case of any tower (or 

4 such a dedicated subcomponent there5 of), 3 cents, and 

6 ‘‘(III) in the case of any nacelle 

7 (or such a dedicated subcomponent 

8 thereof), 5 cents, and 

9 ‘‘(ii) with respect to any related ves10 sel, an amount equal to 10 percent of the 

11 sale price of such vessel. 

12 ‘‘(C) QUALIFIED MANUFACTURING FACIL13 ITY.—The term ‘qualified manufacturing facil14 ity’ means any new or existing facility— 

15 ‘‘(i) which is located in the United 

16 States, and 

17 ‘‘(ii) which manufactures or assembles 

18 qualified offshore wind components, sub19 components, and related vessels. 

20 ‘‘(D) PRODUCTION AND SALE MUST BE IN

21 TRADE OR BUSINESS.—Any qualified offshore 

22 wind component produced and sold by the tax23 payer shall be taken into account under sub24 paragraph (A)(ii)(I) only if the production and 


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1 sale described in subparagraph (A) is in a trade 

2 or business of the taxpayer. 

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

4 ‘‘(1) QUALIFIED OFFSHORE WIND COMPO5 NENT.— 

6 ‘‘(A) IN GENERAL.—The term ‘qualified 

7 offshore wind component’ means— 

8 ‘‘(i) any blade, tower, nacelle, gener9 ator, gearbox, or foundation, and 

10 ‘‘(ii) any dedicated subcomponent nec11 essary to the production, construction, and 

12 operation of any such property. 

13 ‘‘(B) DEFINITIONS.— 

14 ‘‘(i) BLADE.—The term ‘blade’ means 

15 an airfoil-shaped blade which is responsible 

16 for converting offshore wind energy to low 

17 speed rotational energy. 

18 ‘‘(ii) TOWER.—The term ‘tower’ 

19 means a tubular steel, concrete, or steel 

20 lattice which supports the structure of an 

21 offshore wind turbine. 

22 ‘‘(iii) NACELLE.—The term ‘nacelle’ 

23 means the assembly of the cover housing 

24 for drive train and other tower-top compo25 nents of an offshore wind turbine. 


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1 ‘‘(iv) GENERATOR.—The term ‘gener2 ator’ means the component which is 

3 housed in the nacelle and converts the me4 chanical energy from the rotor to electrical 

5 energy. 

6 ‘‘(v) GEARBOX.—The term ‘gearbox’ 

7 means the component housed in the nacelle 

8 which converts the low-speed, high-torque 

9 rotation of the rotor for input into the gen10 erator. 

11 ‘‘(vi) FOUNDATION.—The term ‘foun12 dation’ means the component which se13 cures an offshore wind tower and above14 water turbine components to the sea floor 

15 using offshore wind monopiles, jackets, 

16 gravity-based foundations, fixed, or float17 ing platforms. 

18 ‘‘(2) RELATED VESSEL.—The term ‘related ves19 sel’ means any vessel which is purpose-built or retro20 fitted for purposes of the transport, installation, or 

21 maintenance of offshore wind components and off22 shore wind turbines. 

23 ‘‘(d) SPECIAL RULES.—For purposes of this sec24 tion— 


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1 ‘‘(1) SECRETARY.—Any reference to the Sec2 retary means the Secretary in consultation with the 

3 Secretary of Energy. 

4 ‘‘(2) LABOR CONDITIONS.—Any property shall 

5 be treated as advanced offshore wind manufacturing 

6 property, and any facility shall be treated as a quali7 fied manufacturing facility, only if all laborers and 

8 mechanics employed by all contractors and sub9 contractors in the manufacture of such property or 

10 at such facility are paid wages at rates not less than 

11 the prevailing rates for work of a similar character 

12 in the locality as determined by the Secretary of 

13 Labor, in accordance with sections 3141 through 

14 3144, 3146, and 3147 of title 40, United States 

15 Code. 

16 ‘‘(3) CERTAIN RULES MADE APPLICABLE FOR

17 INVESTMENT CREDIT.—For purposes of the offshore 

18 wind manufacturing investment credit determined 

19 under subsection (b)(1), rules similar to the rules of 

20 subsections (a) and (c) of section 50 shall apply. 

21 ‘‘(4) COORDINATION WITH GENERAL INVEST22 MENT CREDIT.—No credit shall be allowed under 

23 section 48C with respect to any facility taken into 

24 account for purposes of the credit under subsection 

25 (b)(2), or any facility with respect to which any 


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1 qualified investment is taken into account for pur2 poses of the credit under subsection (b)(1). The 

3 credit under this section shall be allowed without re4 gard to whether any qualified investment (as defined 

5 in section 48C(b)) with respect to a facility has been 

6 taken into account for purposes of section 48C in 

7 any preceding taxable year. 

8 ‘‘(e) REGISTRATION.— 

9 ‘‘(1) IN GENERAL.—No credit shall be allowed 

10 under this section unless the taxpayer registers with 

11 the Secretary, at such time, in such form and man12 ner, and subject to such terms and conditions, as the 

13 Secretary may by regulations prescribe. Such reg14 istration shall include a demonstration of compliance 

15 with the requirements of subsection (d)(2). 

16 ‘‘(2) REGISTRATION IN EVENT OF CHANGE IN

17 OWNERSHIP.—Under regulations prescribed by the 

18 Secretary, the taxpayer (other than a corporation 

19 the stock of which is regularly traded on an estab20 lished securities market) shall be required to re-reg21 ister under this subsection if after a transaction (or 

22 series of related transactions) more than 50 percent 

23 of ownership interests in, or assets of, the taxpayer 

24 are held by persons other than persons (or persons 

25 related thereto) who held more than 50 percent of 


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1 such interests or assets before the transaction (or 

2 series of related transactions). 

3 ‘‘(3) DENIAL, REVOCATION, OR SUSPENSION OF

4 REGISTRATION.—Rules similar to the rules of sec5 tion 4222(c) shall apply to registration under this 

6 section. 

7 ‘‘(4) INFORMATION REPORTING.—The Sec8 retary may require— 

9 ‘‘(A) information reporting by any person 

10 registered under this subsection, and 

11 ‘‘(B) information reporting by such other 

12 persons as the Secretary deems necessary to 

13 carry out this section. 

14 ‘‘(f) TERMINATION.— 

15 ‘‘(1) OFFSHORE WIND MANUFACTURING IN16 VESTMENT TAX CREDIT.— 

17 ‘‘(A) IN GENERAL.—Except as provided in 

18 subparagraph (B), in the case of any qualified 

19 investment with respect to advanced offshore 

20 wind manufacturing property which is placed in 

21 service after December 31, 2028, the amount of 

22 the credit determined under subsection (b)(1) 

23 (without regard to this subsection) shall be re24 duced by— 


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1 ‘‘(i) in the case of property placed in 

2 service in calendar year 2029, 30 percent, 

3 ‘‘(ii) in the case of property placed in 

4 service in calendar year 2030, 65 percent, 

5 and 

6 ‘‘(iii) in the case of property placed in 

7 service after December 31, 2030, 100 per8 cent. 

9 ‘‘(B) CERTAIN PROGRESS EXPENDITURE

10 RULES MADE APPLICABLE.—Rules similar to 

11 the rules of subsections (c)(4) and (d) of sec12 tion 46 (as in effect on the day before the date 

13 of the enactment of the Revenue Reconciliation 

14 Act of 1990) shall apply for purposes of sub15 paragraph (A). 

16 ‘‘(2) OFFSHORE WIND MANUFACTURING PRO17 DUCTION TAX CREDIT.—No credit shall be allowed 

18 under subsection (b)(2) in the case of any qualified 

19 offshore wind component first sold or placed in serv20 ice after December 31, 2030.’’. 

21 (b) CLERICAL AMENDMENT.—The table of sections 

22 for subpart C of part IV of subchapter A of chapter 1 

23 of the Internal Revenue Code is amended by inserting 

24 after the item relating to section 36B the following new 

25 item: 

‘‘Sec. 36C. Offshore wind manufacturing credit.’’. 


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1 (c) CONFORMING AMENDMENT.—Paragraph (2) of 

2 section 1324(b) of title 31, United States Code, is amend3 ed by inserting ‘‘, 36C’’ after ‘‘36B’’. 

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

5 this section shall apply to— 

6 (1) any qualified investment (as defined in sec7 tion 36C(b)(1)(B) of the Internal Revenue Code of 

8 1986, as added by this section) with respect to prop9 erty placed in service beginning after August 1, 

10 2021, and 

11 (2) qualified offshore wind components (as de12 fined in section 36C(c)(1) of such Code, as so 

13 added) first sold or placed in service after August 1, 

14 2021. 

Æ 


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