The renewal of tax credits could benefit an offshore wind project off Cuyahoga County in Lake Erie, planned by Lake Erie Energy Development Corporation (LEEDCo), by attracting private investment.
The offshore wind project, which comprises between 20 and 30 MW of generating capacity, would not be qualified for the production tax credit this year, given that the credits will be available for projects that start construction in 2013. However, it could meet the criteria for the investment credit, Lorry Wagner, president of LEEDCo, is cited by the Star Beacon news site as saying.
Namely, the LEEDCo project has to be built according to the Department of Energy’s (DOE) timeframe, as it was awarded a grant of USD 4 million by the Department, which also puts it in line for future grants, distributed over five years. This means that it will probably be completed in 2016 and operational in 2017.
Still, the investment credit could draw a private company to invest 5% of the project cost during 2013, which would amount to approximately USD 7 million. Once the project is completed, the investor would claim the credit. A down payment on a turbine or paying for permits could meet the criteria for the credit this year, Mr. Wagner told the Star Beacon.
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Offshore WIND Staff, January 4, 2013; Image: Great Lakes Energy Development Task Force