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HR 2133119th CongressIn Committee

Lakes Before Turbines Act

Introduced: Mar 14, 2025
Standard Summary
Comprehensive overview in 1-2 paragraphs

Lakes Before Turbines Act would amend the Internal Revenue Code to end the investment tax credit (ITC) for offshore wind facilities located in inland navigable waters of the United States, with an explicit carve-out that excludes the Great Lakes. Concretely, the amendment would apply to taxable years beginning after December 31, 2022, and would treat offshore wind projects in inland waters outside the Great Lakes as no longer eligible for the ITC, while projects in the Great Lakes would remain eligible. The bill was introduced in the House by Rep. Langworthy on March 14, 2025 and referred to the Ways and Means Committee.

Key Points

  • 1Prohibition targets offshore wind ITC in inland navigable waters of the United States, effectively ending the credit for most inland-water sites.
  • 2Carve-out: the Great Lakes are explicitly excluded from the prohibition, so offshore wind projects in the Great Lakes could still be eligible for the ITC.
  • 3Effective date: applies to taxable years beginning after December 31, 2022 (not retroactive before 2023 for those years).
  • 4Legislative status:Introduced in the House and referred to the Committee on Ways and Means; no further actions described in the text provided.
  • 5Policy implication: shift in federal tax incentives away from offshore wind projects in inland waters (outside the Great Lakes), potentially altering project economics and investment decisions.

Impact Areas

Primary group/area affected:- Offshore wind developers, investors, and utilities pursuing projects in inland navigable waters (excluding the Great Lakes), who would lose the ITC for those sites.Secondary group/area affected:- Regions with inland-water offshore wind (non-Great Lakes) that had been counting on the ITC, plus states and localities hosting or evaluating such projects.- The Great Lakes region may be affected differently, since projects there would still be ITC-eligible.Additional impacts:- Potential changes in project economics, financing structures, and the pace of offshore wind development outside the Great Lakes.- Possible budgetary or revenue implications from changes to the ITC, and potential environmental or maritime considerations tied to offshore development in inland waters.
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