II 116TH CONGRESS 1ST SESSION S. 1957 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 SENATE OF THE UNITED STATES JUNE 25, 2019 Mr. MARKEY (for himself, Mr. WHITEHOUSE, Mr. REED, Ms. WARREN, and Mr. BOOKER) introduced the following bill; which was read twice and re- ferred to the Committee on Finance 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. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Offshore Wind Incen- 4 tives for New Development Act’’ or the ‘‘Offshore WIND 5 Act’’. 6 VerDate Sep 11 2014 22:05 Jun 28, 2019 Jkt 034408 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1957.IS S1957 pbinns on DSK79D2C42PROD with BILLS 2 •S 1957 IS SEC. 2. ENERGY CREDIT FOR QUALIFIED OFFSHORE WIND 1 FACILITIES. 2 (a) IN GENERAL.—Subsection (a) of section 48 of the 3 Internal Revenue Code is amended— 4 (1) in paragraph (2)(A)(i)— 5 (A) in subclause (III), by striking ‘‘and’’ at 6 the end; and 7 (B) by adding at the end the following new 8 subclause: 9 ‘‘(V) qualified offshore wind 10 property, and’’; and 11 (2) in paragraph (3)(A)— 12 (A) in clause (vi), by striking ‘‘or’’ at the 13 end; 14 (B) in clause (vii), by adding ‘‘or’’ at the 15 end; and 16 (C) by adding at the end the following new 17 clause: 18 ‘‘(viii) qualified offshore wind prop- 19 erty, but only with respect to property the 20 construction of which begins before Janu- 21 ary 1, 2026,’’. 22 (b) QUALIFIED OFFSHORE WIND PROPERTY.—Sub- 23 section (c) of section 48 of the Internal Revenue Code of 24 1986 is amended by adding at the end the following new 25 paragraph: 26 VerDate Sep 11 2014 22:05 Jun 28, 2019 Jkt 034408 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1957.IS S1957 pbinns on DSK79D2C42PROD with BILLS 3 •S 1957 IS ‘‘(5) QUALIFIED OFFSHORE WIND PROPERTY.— 1 ‘‘(A) IN GENERAL.—The term ‘qualified 2 offshore wind property’ means an offshore facil- 3 ity using wind to produce electricity. 4 ‘‘(B) OFFSHORE FACILITY.—The term 5 ‘offshore facility’ means any facility located in 6 the inland navigable waters of the United 7 States, including the Great Lakes, or in the 8 coastal waters of the United States, including 9 the territorial seas of the United States, the ex- 10 clusive economic zone of the United States, and 11 the outer Continental Shelf of the United 12 States. 13 ‘‘(C) EXCEPTION FOR QUALIFIED SMALL 14 WIND ENERGY PROPERTY.—The term ‘qualified 15 offshore wind property’ shall not include any 16 property described in paragraph (4). 17 ‘‘(D) SPECIAL RULE.—In the case of any 18 property described in subparagraph (A) which 19 was placed in service after December 31, 2016, 20 and for which a credit under this section was 21 allowed by reason of subsection (a)(5) in any 22 taxable year which ends before or includes the 23 date of the enactment of the Offshore WIND 24 Act, notwithstanding any election under such 25 VerDate Sep 11 2014 22:05 Jun 28, 2019 Jkt 034408 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1957.IS S1957 pbinns on DSK79D2C42PROD with BILLS 4 •S 1957 IS subsection (a)(5), such property may be treated 1 at the election of the taxpayer as qualified off- 2 shore wind property (and not as qualified prop- 3 erty which is part of a qualified investment 4 credit facility) for— 5 ‘‘(i) taxable years including or begin- 6 ning after such date of enactment, and 7 ‘‘(ii) any taxable years ending before 8 such date of enactment, including by filing 9 an amended return. 10 Notwithstanding section 6501, an amended re- 11 turn may be filed for purposes of clause (ii) for 12 any taxable year described in such clause.’’. 13 (c) EFFECTIVE DATE.—The amendments made by 14 this section shall take effect on the date of the enactment 15 of this Act. 16 Æ VerDate Sep 11 2014 22:05 Jun 28, 2019 Jkt 034408 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S1957.IS S1957 pbinns on DSK79D2C42PROD with BILLS