January 23 (Renewables Now) - New Jersey has started accepting tax credit applications from companies making a capital investment in offshore wind-related facilities in the state under a programme capped at USD 100 million (EUR 88m).
The announcement comes less than a month after the New Jersey Board of Public Utilities (NJBPU) approved the adoption of a funding mechanism for the state’s offshore wind programme, which targets 3.5 GW by 2030.
Businesses can qualify for tax credits of up to 100% of capital investments made in an eligible wind facility, the New Jersey Economic Development Authority (NJEDA) said on Tuesday. The projects have to be located within seven southern counties in New Jersey -- Burlington, Camden, Gloucester, Salem, Cumberland, Mercer and Cape May. The deadline for taking part in the reimbursement programme is July 1, 2024.
Interested parties must make a capital investment of at least USD 50 million and guarantee the creation of at least 300 full-time jobs. Applications will undergo a net positive economic benefits test to ensure that the state will get a return higher than the value of the credit.
Entities that receive approval have two options afterwards, either to apply 10% of the total credit amount per year against their corporation business or insurance premiums tax or sell the credit for no less than 75% of its value.
“The new Offshore Wind Tax Credit Program is a fiscally responsible and targeted incentive that will help accelerate private sector investment into offshore wind infrastructure and manufacturing here in New Jersey,” said Brian Sabina, NJEDA senior vice president – Office of Economic Transformation.
(USD 1.0 = EUR 0.880)