Federal government endeavors to thwart Maryland's initial offshore wind power venture
The Maryland Offshore Wind Project, planned to be the first offshore wind farm in the state, is facing challenges due to a new deadline for receiving tax credits. The project, located in an 80,000-acre swath of ocean, was authorized in the final weeks of the Biden administration and was expected to power over 718,000 homes.
The developer of the project, US Wind, has not secured its financing yet to underwrite construction, according to Harrison Sholler. The new deadline for receiving tax credits is crushing for the project, as it now needs to begin construction by July 4, 2026, to qualify.
The wind energy tax credit duration was greatly shortened by the One Big Beautiful Bill Act signed by President Donald Trump, which means the Maryland Offshore Wind Project's ability to offset 30% of its costs with tax credits is now in jeopardy. The original rule for receiving the incentives required construction to start by 2033 or potentially later.
The project's feasibility, at least economically, seems uncertain due to the new tax credit rules. Securing financing without the tax credits guaranteed is a hard sell for US Wind.
The Trump administration has filed a motion with the U.S. District Court in Maryland to cancel approval of the Maryland Offshore Wind Project. This request was made in a separate legal proceeding initiated by authorities in Ocean City, Maryland, and follows the administration's earlier request to revoke the project approval.
The Interior Department claims that the Bureau of Ocean Energy Management made an "error" in assessing the turbines' potential impact on other activities within the 80,000-acre swath of ocean where the wind farm would be located. Activities in question include search and rescue operations and fishing.
Despite these challenges, the Maryland Offshore Wind Project was scheduled to potentially break ground next year, with onshore construction not expected until next year at the earliest and the at-sea installation not scheduled until 2028. The project is a Democrat-led state's response to rocketing energy demands.
The Maryland Offshore Wind Project, with 114 turbines, was planned to be a significant step towards renewable energy for the state. However, its future remains uncertain due to the recent developments.
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