I 

112TH CONGRESS 

1ST SESSION H. R. 3238 

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 HOUSE OF REPRESENTATIVES 

OCTOBER 18, 2011 

Mr. PASCRELL (for himself and Mr. LOBIONDO) introduced the following bill; 

which was referred to the Committee on Ways and Means 

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 of the Internal Revenue Code 

7 of 1986 is amended by inserting after section 48D the fol8 lowing new section: 

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

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

11 qualifying offshore wind facility credit for any taxable year 

12 is an amount equal to 30 percent of the qualified invest13 ment for such taxable year with respect to any qualifying 

14 offshore wind facility of the taxpayer. 

15 ‘‘(b) QUALIFIED INVESTMENT.— 

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

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

18 the basis of eligible property placed in service by the 

19 taxpayer during such taxable year which is part of 

20 a qualifying offshore wind facility. 

21 ‘‘(2) CERTAIN QUALIFIED PROGRESS EXPENDI22 TURES RULES MADE APPLICABLE.—Rules similar to 

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

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


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1 Revenue Reconciliation Act of 1990) shall apply for 

2 purposes of this section. 

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

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

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

6 offshore wind facility’ means an offshore facility 

7 using wind to produce electricity. 

8 ‘‘(B) OFFSHORE FACILITY.—The term 

9 ‘offshore facility’ means any facility located in 

10 the inland navigable waters of the United 

11 States, including the Great Lakes, or in the 

12 coastal waters of the United States, including 

13 the territorial seas of the United States, the ex14 clusive economic zone of United States, and the 

15 outer Continental Shelf of the United States. 

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

17 property’ means any property— 

18 ‘‘(A) which is— 

19 ‘‘(i) tangible personal property, or 

20 ‘‘(ii) other tangible property (not in21 cluding a building or its structural compo22 nents), but only if such property is used as 

23 an integral part of the qualifying offshore 

24 wind facility, and 


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

2 amortization in lieu of depreciation) is allow3 able. 

4 ‘‘(d) QUALIFYING CREDIT FOR OFFSHORE WIND FA5 CILITIES PROGRAM.— 

6 ‘‘(1) ESTABLISHMENT.— 

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

8 days after the date of the enactment of this sec9 tion, the Secretary, in consultation with the 

10 Secretary of Energy and the Secretary of the 

11 Interior, shall establish a qualifying credit for 

12 offshore wind facilities program to consider and 

13 award certifications for qualified investments el14 igible for credits under this section to qualifying 

15 offshore wind facility sponsors. 

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

17 megawatt capacity for offshore facilities with 

18 respect to which credits may be allocated under 

19 the program shall not exceed 3,000 megawatts. 

20 ‘‘(2) CERTIFICATION.— 

21 ‘‘(A) APPLICATION PERIOD.—Each appli22 cant for certification under this paragraph shall 

23 submit an application containing such informa24 tion as the Secretary may require beginning on 


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1 the date the Secretary establishes the program 

2 under paragraph (1). 

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

4 which receives a certification shall have 5 years 

5 from the date of issuance of the certification in 

6 order to place the facility in service and if such 

7 facility is not placed in service by that time pe8 riod, then the certification shall no longer be 

9 valid. 

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

11 which qualifying offshore wind facilities to certify 

12 under this section, the Secretary shall— 

13 ‘‘(A) take into consideration which facili14 ties will be placed in service at the earliest date, 

15 and 

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

17 the facility that may lead to reduced industry 

18 and consumer costs or expand access to off19 shore wind. 

20 ‘‘(4) REVIEW AND REDISTRIBUTION.— 

21 ‘‘(A) REVIEW.—Not later than 4 years 

22 after the date of the enactment of this section, 

23 the Secretary shall review the credits allocated 

24 under this section as of such date. 


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1 ‘‘(B) REDISTRIBUTION.—The Secretary 

2 may reallocate credits awarded under this sec3 tion if the Secretary determines that— 

4 ‘‘(i) there is an insufficient quantity 

5 of qualifying applications for certification 

6 pending at the time of the review, or 

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

8 of previously certified facilities have been 

9 significantly delayed and the Secretary de10 termines the applicant will not meet the 

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

12 ‘‘(C) REALLOCATION.—If the Secretary de13 termines that credits under this section are 

14 available for reallocation pursuant to the re15 quirements set forth in paragraph (2), the Sec16 retary is authorized to conduct an additional 

17 program for applications for certification. 

18 ‘‘(5) DISCLOSURE OF ALLOCATIONS.—The Sec19 retary shall, upon making a certification under this 

20 subsection, publicly disclose the identity of the appli21 cant and the amount of the credit with respect to 

22 such applicant. 

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

24 not be allowed under this section with respect to any facil25 ity if— 


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

2 under section 45 for such taxable year or any prior 

3 taxable year, 

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

5 such facility under section 46 by reason of section 

6 48(a) or 48C(a) for such taxable or any preceding 

7 taxable year, or 

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

9 such facility under section 1603 of the American Re10 covery and Reinvestment Act of 2009.’’. 

11 (c) CONFORMING AMENDMENTS.— 

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

13 Code of 1986 is amended— 

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

15 (v), 

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

17 clause (vi) and inserting ‘‘, and’’; and 

18 (C) by adding after clause (vi) the fol19 lowing new clause: 

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

21 is part of a qualifying offshore wind facil22 ity under section 48E.’’. 

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

24 IV of subchapter A of chapter 1 of the Internal RevVerDate Mar 15 2010 21:01 Oct 18, 2011 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3238.IH H3238

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1 enue Code of 1986 is amended by inserting after the 

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

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

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

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

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

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

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

8 the Revenue Reconciliation Act of 1990). 

Æ 


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