The Biden administration announced Friday it’s proposing extending a tax credit to boost offshore wind energy projects, according to Politico.
The tax credit proposal is intended to defray rising interest rates and high steel prices that have made offshore wind energy projects more expensive, Politico reported. The Treasury Department clarified that undersea cables that connect wind farms to the power grid are eligible for tax credits due to the Inflation Reduction Act, according to E&E News.
The Treasury Department’s proposal would make the projects eligible for a 6% base credit, and companies could get additional credits for meeting other criteria, including paying “prevailing wages,” locating the projects in certain communities and using domestic materials, E&E News reported.
Orsted, a Danish offshore wind energy company, announced it would terminate two wind farms being built off the coast of New Jersey on Oct. 31 after mounting financial difficulties.
“Macroeconomic factors have changed dramatically over a short period of time, with high inflation, rising interest rates, and supply chain bottlenecks impacting our long-term capital investments,” Orsted Americas CEO David Hardy said about the decision to halt the projects. “As a result, we have no choice but to cease development of Ocean Wind 1 and Ocean Wind 2.”
Other major companies involved in offshore wind production, including Siemens and General Electric, have either announced expectations of losses or have sought emergency funding.
Over $7 billion has been invested in offshore wind projects since President Joe Biden signed the Inflation Reduction Act into law in August 2022, according to the White House, which is seeking to decarbonize the United States economy by 2050.
The Biden administration is also investigating whether offshore wind farms are causing unusual death rates among humpback and right whales reported by the National Oceanic and Atmospheric Administration (NOAA).
An Aug. 29 offshore wind lease sale in the Gulf of Mexico flopped when only one of the three areas drew any bids. The resulting sale could provide enough electricity for 450,000 homes, less than 50% of what the Biden administration had projected all three of the areas could generate.
All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.
DONATE TO BIZPAC REVIEW
Please help us! If you are fed up with letting radical big tech execs, phony fact-checkers, tyrannical liberals and a lying mainstream media have unprecedented power over your news please consider making a donation to BPR to help us fight them. Now is the time. Truth has never been more critical!
- Police chief who groveled after discussing ‘East African crime’ panders to Somalis again - December 17, 2025
- Ilhan Omar whines about ICE operations in Minneapolis - December 17, 2025
- ‘It’s all bullsh*t’: Tim Walz goes on anti-Second Amendment rant - December 17, 2025
Comment
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. Thank you for partnering with us to maintain fruitful conversation.
BPR INSIDER COMMENTS
Scroll down for non-member comments or join our insider conversations by becoming a member. We'd love to have you!
