II 

111TH CONGRESS 

2D SESSION S. 3064 

To amend the Internal Revenue Code of 1986 to provide a credit for the 

production of energy from deep water offshore wind. 

IN THE SENATE OF THE UNITED STATES 

MARCH 3, 2010 

Ms. SNOWE (for herself, Mr. CARPER, and Ms. COLLINS) 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 credit for the production of energy from deep water 

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 ‘‘Deepwater Offshore 

5 Wind Incentive Act’’. 

6 SEC. 2. CREDIT FOR PRODUCTION OF ENERGY FROM DEEP 

7 WATER OFFSHORE WIND. 

8 (a) PRODUCTION CREDIT.— 

9 (1) IN GENERAL.—Subpart D of part IV of 

10 subchapter A of chapter 1 of the Internal Revenue 


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1 Code of 1986 is amended by adding at the end the 

2 following new section: 

3 ‘‘SEC. 45R. CREDIT FOR PRODUCTION FOR DEEP WATER 

4 OFFSHORE WIND. 

5 ‘‘(a) GENERAL RULE.—For purposes of section 38, 

6 the deep water offshore wind production credit of any tax7 payer for any taxable year is equal to the product of— 

8 ‘‘(1) 3.04 cents, multiplied by 

9 ‘‘(2) the kilowatt hours of electricity— 

10 ‘‘(A) produced by the taxpayer at a deep 

11 water offshore wind facility during the 10-year 

12 period beginning on the date the facility was 

13 originally placed in service, and 

14 ‘‘(B) sold by the taxpayer to an unrelated 

15 person during the taxable year. 

16 ‘‘(b) NATIONAL LIMITATION.— 

17 ‘‘(1) IN GENERAL.—The amount of credit 

18 which would (but for this subsection) be allowed 

19 with respect to any facility for any taxable year shall 

20 not exceed the amount which bears the same ratio 

21 to such amount of credit as— 

22 ‘‘(A) the national megawatt capacity limi23 tation allocated to the facility, bears to 

24 ‘‘(B) the total megawatt nameplate capac25 ity of such facility. 


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1 ‘‘(2) AMOUNT OF NATIONAL LIMITATION.—The 

2 aggregate amount of national megawatt capacity 

3 limitation allocated by the Secretary under para4 graph (3) shall not exceed 6,000 megawatts. 

5 ‘‘(3) ALLOCATION OF LIMITATION.—The Sec6 retary shall allocate the national megawatt capacity 

7 limitation in the following manner: 

8 ‘‘(A) The Secretary shall allocate the first 

9 5,000 megawatts of the national megawatt ca10 pacity limitation to facilities by giving priority 

11 to facilities which will be placed in service at 

12 the earliest date. 

13 ‘‘(B) The Secretary shall allocate the re14 maining megawatts of the national megawatt 

15 capacity limitation by taking into account the 

16 technology of the facility. 

17 ‘‘(4) REGULATIONS.—Not later than 6 months 

18 after the date of the enactment of this section, the 

19 Secretary shall prescribe such regulations as may be 

20 necessary or appropriate to carry out the purposes 

21 of this subsection. Such regulations shall provide a 

22 certification process under which the Secretary, after 

23 consultation with the Secretary of Energy, shall ap24 prove and allocate the national megawatt capacity 

25 limitation. 


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1 ‘‘(c) DEEP WATER OFFSHORE WIND FACILITY.— 

2 For purposes of this section— 

3 ‘‘(1) IN GENERAL.—The term ‘deep water off4 shore wind facility’ means any facility which— 

5 ‘‘(A) is owned by the taxpayer, 

6 ‘‘(B) uses wind to produce electricity, 

7 ‘‘(C) operates in 60 meters or more of 

8 water, 

9 ‘‘(D) is located within the internal or terri10 torial waters of the United States, and 

11 ‘‘(E) is placed in service after the date of 

12 the enactment of this section and before Janu13 ary 1, 2030. 

14 ‘‘(2) EXCEPTIONS.—Such term shall not in15 clude any facility if— 

16 ‘‘(A) a credit has been allowed to such fa17 cility under section 45 for such taxable year or 

18 any prior taxable year, 

19 ‘‘(B) a credit has been allowed with respect 

20 to such facility under section 46 by reason of 

21 section 48(a) for such taxable or any preceding 

22 taxable year, or 

23 ‘‘(C) a grant has been made with respect 

24 to such facility under section 1603 of the Amer25 ican Recovery and Reinvestment Act of 2009. 


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1 ‘‘(d) OTHER RULES TO APPLY.—Rules similar to the 

2 rules of paragraphs (1), (3), (4), and (5) of section 45(e) 

3 shall apply for purposes of this section. 

4 ‘‘(e) INFLATION ADJUSTMENT.— 

5 ‘‘(1) IN GENERAL.—In the case of any calendar 

6 year after 2010, the 3.04 cent amount in subsection 

7 (a)(1) shall be adjusted by multiplying such amount 

8 by the inflation adjustment factor for the calendar 

9 year in which the sale occurs. If any amount as in10 creased under the preceding sentence is not a mul11 tiple of 0.01 cent, such amount shall be rounded to 

12 the nearest multiple of 0.01 cent. 

13 ‘‘(2) INFLATION ADJUSTMENT FACTOR.—For 

14 purposes of paragraph (1), the term ‘inflation ad15 justment factor’ has the meaning given such term 

16 under section 45(e)(2)(B), except that ‘calendar year 

17 2010’ shall be substituted for ‘calendar year 

18 1992’.’’. 

19 (2) CREDIT MADE PART OF GENERAL BUSINESS

20 CREDIT.—Section 38(b) of the Internal Revenue 

21 Code of 1986 is amended— 

22 (A) by striking ‘‘plus’’ at the end of para23 graph (34), 

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

25 paragraph (35) and inserting ‘‘, plus’’, and 


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1 (C) by adding at the end the following new 

2 paragraph: 

3 ‘‘(36) the deep water offshore wind production 

4 credit determined under section 45R(a).’’. 

5 (3) COORDINATION WITH OTHER BENEFITS.— 

6 (A) SECTION 45 PRODUCTION CREDIT.— 

7 Section 45(e) of the Internal Revenue Code of 

8 1986 is amended by adding at the end the fol9 lowing new paragraph: 

10 ‘‘(12) COORDINATION WITH DEEP WATER OFF11 SHORE WIND CREDIT.—No credit shall be allowed 

12 under subsection (a) with respect to any qualified fa13 cility described in subsection (d)(1) if a credit has 

14 been allowed to such facility under section 45J for 

15 such taxable year or any prior taxable year.’’. 

16 (B) INVESTMENT CREDIT.—Subsections 

17 (B) and (C) of section 48(d)(5)(B) of such 

18 Code are each amended by inserting ‘‘or section 

19 45R’’ after ‘‘section 45’’. 

20 (C) GRANTS.—Section 48(d)(1) of such 

21 Code is amended by striking ‘‘or section 45’’ 

22 and inserting ‘‘, section 45, or section 45R’’. 

23 (4) CLERICAL AMENDMENT.—The table of sec24 tions for subpart D of part IV of subchapter A of 


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1 chapter 1 of the Internal Revenue Code of 1986 is 

2 amended by adding at the end the following: 

‘‘Sec. 45R. Credit for production for deep water offshore wind.’’. 

3 (b) OPTION TO ELECT INVESTMENT CREDIT IN LIEU

4 OF PRODUCTION CREDIT.—Section 48(a)(5)(C)(i) of the 

5 Internal Revenue Code of 1986 is amended by inserting 

6 ‘‘, or any deep water offshore wind facility (within the 

7 meaning of section 45R) if such facility is placed in service 

8 before 2030’’ before the period at the end. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to facilities placed in service after 

11 the date of the enactment of this Act. 

Æ 


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