New Jersey Opens Offshore Wind Tax Credit Program

Laxman Pai
Wednesday, January 23, 2019

The New Jersey Economic Development Authority (NJEDA) announced that companies making a capital investment in offshore wind-related facilities in New Jersey can now apply for tax credits through the state’s Offshore Wind Tax Credit Program.

According to NJEDA, the Offshore Wind Tax Credit is a financial tool designed to spur private capital investment and employment growth in major land-based projects related to offshore wind. It provides reimbursement for eligible capital investments in industry-specific facilities located in the seven southern counties.

Total credits approved as part of the program are capped at $100 million.

“Encouraging investment in clean energy is a key element of Governor Murphy’s vision for a stronger and fairer New Jersey economy because it creates unprecedented new opportunities for job creation while also providing a healthier, more sustainable future for our families,” said Brian Sabina, NJEDA Senior Vice President – Office of Economic Transformation.

“We are excited to take this critical step forward. 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. These early investment projects have the potential to attract a broader offshore wind supply chain and position New Jersey as a national leader in the industry,” Sabina added.

Under the program, businesses may qualify for tax credits of up to 100% of capital investments made in a qualified wind facility, but the tax credit amount may be limited by a net positive economic benefits test which uses the project’s estimated tax revenues to ensure the State will receive a return greater than the value of the credit.

Approved entities may elect to apply 10% of the total credit amount per year over a 10-year period against their corporation business or insurance premiums tax or sell the credit for at least 75% of its value.

To qualify for the tax credits, businesses must make a capital investment of at least $50 million in a qualified wind energy facility within one of seven targeted counties: Burlington, Camden, Gloucester, Salem, Cumberland, Mercer, and Cape May.

Categories: Finance Government Update Wind Power Offshore Energy Offshore Wind

Related Stories

Argentina YPF to Shed Offshore Exploration Projects

Second Hai Long Substation Heads to Project Site Offshore Taiwan

China Unveils Plans for New Offshore Wind Farms to Tackle Carbon Emissions

AI & Offshore Energy: The Higher the Stakes, the More Value AI Creates

Sunda Energy, Timor-Leste Gov Plan Accelerated Chuditch Gas Development

RINA to Conduct Pre-FEED Study for Petronas’ CCS Project in Malaysia

TotalEnergies Wraps Up Acquisition of SapuraOMV’s Gas Assets

Harbour Energy, Mubadala Sign Deals for Central Andaman Block Off Indonesia

TVO Selects Collins to Head Australian Ops

QatarEnergy Signs Deal with Shell for Long-Term LNG Supply to China

Current News

INEOS Wraps Up Acquisition of CNOOC’s US Oil and Gas Assets

Fire at Petronas Gas Pipeline in Malaysia Sends 63 to Hospital

Japan’s ENEOS Xplora, PVEP Ink Deal for Vietnam Offshore Block

CNOOC Makes Major Oil and Gas Discovery in South China Sea

Valeura’s Assets in Gulf of Thailand Remain Operational After Earthquake

Op-Ed: Kazakhstan’s National O&G Firm Positioning Itself as Global Energy Player

Woodside to Shed Some Trinidad and Tobago Assets for $206M

CNOOC Sees 11% Profit Growth in 2024 Driven by Record Oil Production

‘Ultra-Mega’ Offshore Deal for L&T at QatarEnergy LNG’s North Field Gas Scheme

Keel Laying for Wind Flyer Trimaran Crew Boat

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com