The New Jersey Economic Development Authority (NJEDA) has opened an application period for the Offshore Wind Tax Credit Program which, with an overall budget of up to USD 350 million, provides tax credits to businesses working in the offshore wind industry that will be employing at least 150 new, full-time employees.
Eligible applicants can receive tax credits which can be applied against corporate business tax or insurance premiums. Tax credits are released in increments of 20 per cent of the total credit amount per year for five years. Businesses can also sell their tax credits for at least 75 per cent of the credit amount.
The tax credits, which often amount to up to 40-60 per cent of the qualified capital investments, complement other state efforts by providing tax incentives to support businesses making investments in qualified wind energy facilities.
“Between the New Jersey Wind Port, new offshore wind workforce development programs, and Governor Phil Murphy’s dedication to growing a greener, fairer New Jersey, the Garden State is quickly emerging as the American capital of offshore wind”, said NJEDA Chief Executive Officer Tim Sullivan. “The Offshore Wind Tax Credit is a powerful financial tool that will complement these efforts by enabling global offshore wind companies to make the decision to locate, invest, hire, and most importantly, build a local supply chain here in New Jersey”.
To receive tax credits, businesses must meet minimum capital investment and job creation requirements.
In line with the NJEDA’s commitment to fiscal responsibility, projects must demonstrate that as a result of the capital investment and the resultant job creation, the State of New Jersey will receive at least 110 per cent of the total tax credit amount over a five-year period.
Applicants may request an extended net-benefit period of up to 20 years if they can present verifiable evidence of a longer company commitment to the state.