Policy Pulse New Tax Credit Boosts US Wind Energy Projects in 2025

By Chitranshi Jaiswal , 26 August, 2025

In 2025, the United States (U.S.) Energy and Power (EnP) market is seeing renewed momentum as a new federal tax credit for wind energy projects takes effect under the Inflation Reduction Act (IRA) expansion. The revised Production Tax Credit (PTC), effective from January 2025, offers up to USD 27/MWh for qualifying onshore wind projects and introduces additional bonuses for domestic content and energy communities.

The EnP Market in 2025 is being reshaped by this policy shift, which has already triggered a surge in project announcements. According to the American Clean Power Association, over 9 GW of new wind capacity was approved in Q1 2025 alone nearly double the same period in 2024. Major developers such as NextEra Energy, Invenergy, and Ørsted have announced significant capital commitments toward expanding wind infrastructure in key regions including Texas, the Midwest, and the Northeast.

The tax credit policy in 2025 is also driving upstream impacts across the EnP Market in 2025, particularly in turbine manufacturing and grid modernization. Siemens Gamesa and GE Vernova have expanded U.S. production facilities in response to anticipated demand, with supply chain investments expected to reach USD 5.4 billion in 2025. The domestic content bonus has incentivized OEMs to shift sourcing and assembly operations back to U.S. soil, strengthening the industrial base for the EnP Market in 2025.

In addition to hardware expansion, the EnP Market in 2025 is seeing increased activity in transmission infrastructure. The Department of Energy’s Grid Deployment Office allocated USD 2.8 billion in 2025 to support new interconnection lines critical for large-scale wind integration, with a focus on underserved energy communities.

The EnP Market 2025 outlook is now closely tied to policy-backed acceleration of renewables, particularly wind energy. Analysts forecast a 12 percent YoY growth in wind energy’s share of total power generation by end-2025, up from 10 percent in 2024, marking a significant shift in the U.S. energy mix.