Applications Open for NJEDA Offshore Wind Tax Credit Program
On December 3, the New Jersey Economic Development Authority announced that applications are open for the Offshore Wind Tax Credit Program. Eligible applicants can receive tax credits, often up to 40-60 percent of a project’s qualified capital investments, which can be applied against corporate business tax or insurance premiums. Tax credits are released in increments of 20 percent of the total credit amount per year for five years. Businesses can also sell their tax credits for at least 75 percent of the credit amount.
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 percent of the total tax credit amount over a 5-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.
More information about the Offshore Wind Tax Credit, including detailed eligibility criteria, is available at https://www.njeda.com/offshorewindtaxcredit/.