HR 2187 — Summary of the Bill (Introduced March 18, 2025)
Overview
- Purpose: Amend the Internal Revenue Code to disallow the production tax credit (PTC) and investment tax credit (ITC) for offshore wind facilities located in U.S. inland navigable waters or coastal waters.
- Key effect: Beginning with energy produced and property placed in service after December 31, 2025, certain offshore wind projects in inland navigable or coastal waters would be ineligible for PTC and ITC subsidies.
- Status: Introduced in the U.S. House of Representatives; referred to the Committee on Ways and Means (March 18, 2025).
What the bill does (main provisions)
- ITC/Production Tax Credit changes:
- Section 48(a)(5) amended by striking subparagraph (F). This alters the ITC framework related to certain energy properties, effectively removing eligibility for specified offshore wind facilities.
- Section 45(d)(1) amended by adding “or any facility which is located in the inland navigable waters of the United States or in the coastal waters of the United States.” This broadens the scope of facilities that may be considered non-qualifying for tax credits.
- Section 45Y(b)(1) amended to add a new subparagraph (E):
- (i) Defines “qualified facility” not to include any “disqualified offshore wind facility.”
- (ii) Defines “disqualified offshore wind facility” as an offshore wind facility located in the inland navigable waters or coastal waters of the United States.
- Section 48E(b)(3) amended to add a new subparagraph (D):
- States that a “qualified facility” shall not include any “disqualified offshore wind facility” (as defined in 45Y(b)(1)(E)(ii)).
- Effective date:
- The amendments apply to energy produced and property placed in service after December 31, 2025. Projects placed in service before that date would not be subject to the new disqualification.
Who is affected
- Offshore wind facilities located in:
- Inland navigable waters of the United States (e.g., rivers, certain near-shore channels) and
- Coastal waters of the United States (nearshore/offshore areas within U.S. coastal zones)
- Specifically, projects seeking PTC or ITC treatment after 2025 would be ineligible for these credits if located in the described waters.
- Tax equity investors, project developers, lenders, and others involved in financing offshore wind projects in these waters would be affected by the removal of these federal tax incentives.
Procedural and timeline notes
- Committee action: Referred to the House Committee on Ways and Means (March 18, 2025).
- Legislative companion: HR 1462 (companion bill) is noted as related.
Sponsors
- Primary sponsor: Pat Fallon
- Cosponsors: Brandon Gill, Andrew S. Clyde, Harriet M. Hageman, Lance Gooden
Related information
- The bill’s text defines “disqualified offshore wind facility” and ties the qualification status to the location of the wind facility (inland navigable or coastal waters) and to the post-2025 effective date.
- As a companion bill, HR 1462 may cover similar policy changes.
Impact considerations
- Potential shift in the economics of nearshore/offshore wind projects in the specified waters due to lost ITC/PTC benefits after 2025.
- Developers may alter siting, financing, or project timelines in response to the altered tax credit landscape.
- The broader policy and market implications would depend on competing incentives and any subsequent legislative action.
