To amend the Internal Revenue Code of 1986 to disallow the production tax credit and investment tax credit for offshore wind facilities placed in service in the inland navigable waters of the United States or the coastal waters of the United States.

This proposal would stop certain federal tax breaks for offshore wind projects in U.S. waters. Specifically, it would deny both the investment tax credit and the clean electricity production credit to offshore wind facilities located in inland navigable waters or coastal waters. The change would apply going forward, covering energy produced and property placed in service after December 31, 2025.

In short, offshore wind projects in U.S. waters would no longer qualify for these federal tax credits starting in 2026, which could make some projects more expensive to build and operate.

• Who is affected: Companies developing or operating offshore wind projects in U.S. inland navigable or coastal waters
• What changes: No investment tax credit and no clean electricity production credit for these projects; they are defined as “disqualified offshore wind facilities” under the tax code changes
• When: Applies to energy produced and property placed in service after December 31, 2025