New Jersey to allocate USD 350m in offshore wind tax credit scheme

Offshore wind turbines. Source: LICengineering (www.liceng.dk).

December 6 (Renewables Now) - Regulators in New Jersey are awaiting bids for projects looking to qualify in its tax credit programme that will support offshore wind development with up to USD 350 million (EUR 310.1m).

New Jersey Economic Development Authority (NJEDA) on Friday launched the initiative and will accept applications on a rolling basis until the target cap has been reached. Under the scheme, project developers could receive tax incentives, often up to 40%-60% of a project’s qualified capital investments, over a five-year period.

Among the requirements for a project to get tax credits is to pass a minimum capital investment threshold and create at least 150 new full-time jobs. Additionally, they should demonstrate that the state will receive at least 110% of the total tax credit amount over five years as a result of the project investment. The specific net-benefit period can be extended to up to 20 years.

New Jersey aims at 7,500 MW of offshore wind by 2035 as part of its plan to reach 100% clean energy by 2050. To meet the goal, the state is conducting a number of initiatives among which is leasing its New Jersey Wind Port for offshore wind manufacturing. In October, six wind developers and turbine makers bid in a solicitation to become tenants there.

(USD 1.0 = EUR 0.886)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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