Lakes Before Turbines Act

Bill Number

H.R. 2133

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-03-14: Referred to the House Committee on Ways and Means.

Last Updated

2025-05-08T19:21:32Z

AI-Generated Summary

Purpose

The "Lakes Before Turbines Act" (H.R. 2133) aims to eliminate federal tax incentives for developing offshore wind energy facilities in the Great Lakes. It seeks to protect these inland waters by removing financial support for wind projects that could potentially harm the environment or local ecosystems.

Key Provisions

• Amendment to Tax Code: The bill modifies Section 48 of the Internal Revenue Code of 1986, which governs the investment tax credit (ITC)—a federal tax break that reduces the tax liability for businesses investing in renewable energy projects like wind facilities.
• Specific Exclusion: It adds language to exclude "any of the Great Lakes" from the definition of eligible locations for offshore wind facilities in "inland navigable waters of the United States." This means the ITC will no longer apply to wind projects in these lakes.
• Effective Date: The change takes effect for tax years beginning after December 31, 2022, meaning projects started or claimed after this date in the Great Lakes would not qualify for the credit.

Significant Changes to Existing Law

• Prior to this bill, the ITC under Section 48 allowed tax credits for offshore wind facilities in all inland navigable waters, including the Great Lakes, as part of broader incentives for clean energy development established in laws like the Inflation Reduction Act of 2022.
• This amendment narrows eligibility by carving out the Great Lakes, effectively ending the tax credit for new or ongoing wind projects in that specific area while leaving incentives intact for other inland waters (e.g., rivers or coastal bays not part of the Great Lakes system).

Potential Impacts

• On Government Agencies: The Internal Revenue Service (IRS) would need to update tax guidance and enforcement to exclude Great Lakes projects, potentially reducing federal tax revenue losses from these credits but increasing administrative workload for audits and clarifications.
• On Citizens and Economy: Residents in Great Lakes states may see slower development of offshore wind, which could limit job creation in renewable energy but reduce potential environmental risks like turbine impacts on water quality, wildlife (e.g., fish migration), or shipping routes. It might also lower energy costs indirectly by shifting focus away from subsidized projects.
• On International Relations: Minimal direct impact, though it could affect U.S.-Canada relations since the Great Lakes are shared with Canada; any wind projects there might have involved cross-border environmental coordination, now potentially stalled.

Main Stakeholders Affected

• Wind Energy Developers and Companies: Firms planning or operating offshore wind projects in the Great Lakes (e.g., in states like Michigan, Wisconsin, or New York) would lose a key financial incentive, making projects less viable and possibly leading to cancellations or relocations.
• Great Lakes States and Local Communities: Governments and residents in bordering states (Illinois, Indiana, Michigan, Minnesota, New York, Ohio, Pennsylvania, Wisconsin) could benefit from preserved lake ecosystems but face missed economic opportunities in green jobs and energy production.
• Environmental Groups and Taxpayers: Conservation organizations might support the protection of sensitive aquatic habitats, while general taxpayers could see reduced federal spending on subsidies, though it might slow national progress toward renewable energy goals.
• Federal Government: Congress and the Treasury Department would enforce the policy, balancing energy policy with regional environmental priorities.

Notable Legal, Constitutional, or Political Implications

• Legal: The bill is a targeted tax code amendment, unlikely to face constitutional challenges as it falls within Congress's authority to regulate taxation and commerce. However, it could invite lawsuits from affected developers claiming retroactive impacts on pre-2023 investments, though the effective date post-2022 provides some clarity.
• Constitutional: No major issues, as it does not infringe on states' rights or free speech; it simply adjusts federal incentives without mandating or prohibiting private activity.
• Political: This reflects tensions between national clean energy goals and regional concerns over lake protection, potentially fueling debates in energy committees. It may energize opposition to offshore wind in freshwater areas while highlighting partisan divides on subsidies—supporters see it as safeguarding vital resources, critics as hindering climate action. As an introduced bill (referred to the House Ways and Means Committee on March 14, 2025), its passage depends on broader tax and energy policy negotiations in the 119th Congress.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Langworthy, Nicholas A. [R-NY-23]

Recent Actions

• 2025-03-14: Referred to the House Committee on Ways and Means.
• 2025-03-14: Introduced in House
• 2025-03-14: Introduced in House

Bill Versions

• Lakes Before Turbines Act — issued 2025-03-14 — PDF (2 pages)