Bill Overview
Title: To amend the Internal Revenue Code of 1986 to end the investment tax credit for offshore wind facilities in the inland navigable waters of the United States.
Description: This bill eliminates the energy-related tax credit for investment in certain offshore wind facilities after 2021.
Sponsors: Rep. Jacobs, Chris [R-NY-27]
Target Audience
Population: People associated with offshore wind facilities in inland navigable waters
Estimated Size: 50000
- Offshore wind facilities in the inland navigable waters of the United States will no longer be able to receive investment tax credits after 2021, potentially impacting their financial viability.
- Developers and operators of offshore wind facilities may face higher costs without this tax credit, which could slow down investment in new offshore wind projects or lead to increased energy costs.
- Communities that benefit from offshore wind energy in terms of employment and local economic growth might be affected due to potential slowdown in development projects.
Reasoning
- The target population primarily includes stakeholders and employees in the offshore wind industry, especially projects planned or located in inland navigable waters of the United States.
- The withdrawal of tax credits may deter new investments, impacting companies and their employees financially. It may also indirectly affect local economies that benefit from these projects, such as through job creation and increased local business demand.
- Since offshore wind projects are capital-intensive, the removal of these credits could result in significant financial challenges for smaller firms.
- While the policy's financial impact may be evident in increased energy costs, the exact effect on individual wellbeing varies based on their direct involvement in the industry.
Simulated Interviews
Renewable Energy Developer (Houston, TX)
Age: 34 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- This policy is short-sighted and risks undermining the renewable energy objectives by making it less attractive to invest in offshore wind.
- Our company will need to reassess planned projects, and there's potential for layoffs if the financial models don't remain viable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 6 | 8 |
| Year 3 | 5 | 8 |
| Year 5 | 5 | 8 |
| Year 10 | 4 | 9 |
| Year 20 | 3 | 9 |
Project Manager at Offshore Wind Facility (Norfolk, VA)
Age: 42 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- While current operations remain viable, this policy threatens future expansion plans and could hinder job security for many.
- We were counting on these credits to secure additional funding for facility upgrades.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 5 | 8 |
| Year 5 | 5 | 8 |
| Year 10 | 6 | 9 |
| Year 20 | 6 | 9 |
Offshore Wind Engineer (Boston, MA)
Age: 28 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- This change feels like a step back in clean energy initiatives.
- There might be a slow-down in new projects, impacting my career as fewer opportunities arise.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 6 | 8 |
| Year 3 | 5 | 8 |
| Year 5 | 5 | 9 |
| Year 10 | 5 | 9 |
| Year 20 | 5 | 9 |
Local Business Owner (Baton Rouge, LA)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- I rely on contracts from these wind projects, and any reduction in future projects will directly hit my revenue.
- This policy could lead to less business or even having to scale back operations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 7 |
| Year 3 | 4 | 7 |
| Year 5 | 3 | 8 |
| Year 10 | 3 | 8 |
| Year 20 | 4 | 8 |
Policy Analyst (Washington, D.C.)
Age: 45 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 9/20
Statement of Opinion:
- The removal of tax credits may slow down the growth of the industry, posing barriers to the U.S. achieving its renewable energy goals.
- The policy seems contrary to national interests in reducing carbon emissions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 9 |
| Year 20 | 9 | 9 |
Investor (Portland, OR)
Age: 60 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 7/20
Statement of Opinion:
- I will need to reassess the viability of my investments in offshore wind with these credits removed.
- It may push investments towards other types of renewable energy that offer better incentives.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 8 |
| Year 3 | 5 | 8 |
| Year 5 | 4 | 9 |
| Year 10 | 4 | 9 |
| Year 20 | 4 | 9 |
Energy Consultant (San Francisco, CA)
Age: 38 | Gender: female
Wellbeing Before Policy: 9
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- Clients are worried about the change in policy affecting their strategic plans.
- There might be a shift in preferred energy sources, affecting my consulting focus.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 9 |
| Year 2 | 8 | 9 |
| Year 3 | 8 | 9 |
| Year 5 | 8 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Graduate Student (Chicago, IL)
Age: 24 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 9/20
Statement of Opinion:
- The policy change worries me about job prospects in renewable energy post-graduation.
- I'm concerned about the commitment to sustainable energy solutions in the U.S.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 8 |
| Year 3 | 6 | 8 |
| Year 5 | 6 | 8 |
| Year 10 | 7 | 9 |
| Year 20 | 8 | 9 |
Construction Worker (Aberdeen, WA)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- My job relies on new projects coming in. Less investment might mean fewer jobs in the future.
- This threatens not just potential projects but also current employment stability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 5 | 7 |
| Year 5 | 4 | 7 |
| Year 10 | 5 | 8 |
| Year 20 | 6 | 8 |
Retired Navy Officer (Miami, FL)
Age: 56 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- Thought the incentive would support more renewable energy in coastal areas, which could benefit property values and community development.
- This policy could mean less growth in renewable projects, affecting local economy and environment.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 6 | 8 |
| Year 20 | 6 | 8 |
Cost Estimates
Year 1: $25000000 (Low: $15000000, High: $35000000)
Year 2: $25000000 (Low: $15000000, High: $35000000)
Year 3: $25000000 (Low: $15000000, High: $35000000)
Year 5: $25000000 (Low: $15000000, High: $35000000)
Year 10: $25000000 (Low: $15000000, High: $35000000)
Year 100: $25000000 (Low: $15000000, High: $35000000)
Key Considerations
- Ending the investment tax credit could improve federal budget consistency by eliminating a financial aid program.
- There would likely be a short-term reduction in offshore wind investments, impacting the achievement of renewable energy goals.
- Local economies may be affected by the downturn in offshore wind developments, especially if these regions were relying on wind energy for growth.