What’s in OBBBA for offshore?

Image: Department of the Interior

With the One Big Beautiful Bill Act (OBBBA) now signed into law, industries and their trade associations are either finding much in it to like, or not. So what’s in it for the offshore industry? More for offshore oil and gas than for offshore wind.

“This is a major milestone for the Gulf of America,” said National Ocean Industries Association (NOIA) president Erik Milito. “With President Trump’s signature, OBBBA will restore certainty to the offshore oil and gas leasing process, bringing back the predictability that unlocks investment, protects affordable energy, and strengthens our national security.

“Energy security is national security. And energy affordability impacts every American household. When Gulf of America lease sales disappear, so do the jobs, investment, and energy production that lift communities from Louisiana to Pennsylvania and across all 50 states. The Gulf of America provisions in OBBBA reverse that trend, creating the stability needed to support long-term growth.

“These provisions reestablish a dependable offshore leasing program that drives economic activity, supports critical U.S. supply chains, sustains good-paying jobs nationwide, and delivers meaningful funding for conservation and coastal resilience. A strong Gulf of America means a stronger economy and a more secure energy future for the entire nation.

“At the same time, work remains to ensure business certainty and predictability to power America. Recent changes to the tax code continue to create unnecessary headwinds for offshore wind and for the shipbuilders, ports, and manufacturers that support it. Offshore wind is part of the solution to surging power demand and to our global competitiveness with China. NOIA will keep working with both parties to build support for stronger tax certainty and to advance lasting, broad-based permitting reform. Tackling these issues will benefit the full breadth of the American economy.

“With OBBBA becoming law, we have a strong foundation for continued Gulf of America energy leadership.”

OFFSHORE WIND

With the passage of OBBA, says the Oceantic Network, offshore wind projects must either start construction by mid-2026 or finish construction by the end of 2027 to qualify for Inflation Reduction Act tax credits, substantially scaling back current policy that kept these credits in place until the next decade. The final bill also includes improvements to the newly created FEOC (Foreign-Entity of Concern) supply chain reporting requirements for tax credit eligibility over earlier drafts, and removed the heavily publicized excise tax the Senate had earlier proposed.

“America needs all the power it can get, but Washington chose to compound our national energy crisis by deprioritizing domestic clean energy production and manufacturing, which will eventually lead to higher energy prices and fewer American jobs,” said Oceantic Network president Liz Burdock.

“While this fight is over, I’m incredibly proud of Oceantic’s members and staff — they worked hard, advocated even harder, and made a difference when it mattered most,” said Burdock. “Because of their relentless push, developers now have one year to start construction and retain 100% of their tax credits, with a simple ‘safe harbor’ option. Offshore wind remains a tool to address our nation’s surging energy demand and rising energy costs while driving economic growth. Now we double down and keep fighting for stable policies that let clean energy keep building.”