Offshore Wind 2023 Tax Incentives

The Challenge: Expand Offshore Wind-Related Economic Development 

The large majority of wind turbine and balance of plant components required for offshore wind farms currently are produced outside the United States. Global demand for offshore wind deployment is increasing and existing suppliers do not have the production capacity to support the entire industry. Developing a domestic supply chain will reduce reliance on international manufacturers and create local jobs and economic benefits. To advance the emerging offshore wind industry, the Commonwealth seeks to foster growth of a robust offshore wind supply chain by supporting the localization of the global industry and expanding the participation of Massachusetts-based manufacturers, suppliers, and service providers. Stimulated investments in new or substantially renovated offshore wind manufacturing facilities will also expand offshore wind industry-related employment opportunities.

About Offshore Wind 2023 Tax Incentives

The Massachusetts Clean Energy Center (MassCEC), in consultation with the Massachusetts Department of Revenue, is offering up to $35,000,000 of tax incentives over a 5-year period commencing in tax year 2023 to certified companies engaged in offshore wind development, manufacturing, or commercialization for the offshore wind industry within Massachusetts. This Offshore Wind Tax Incentive Program is part of the broader Massachusetts Offshore Wind Industry Investment Program, created by the 2022 climate bill, An Act Driving Clean Energy and Offshore Wind, to develop and expand offshore wind related employment opportunities and promote renewable energy economic development by supporting and stimulating manufacturing and related supply chain capacity in the Commonwealth.

The Offshore Wind Tax Incentive Program includes a process for a taxpayer or corporation to seek certification as a Certified Offshore Wind Company. 

MassCEC-certified offshore wind companies may be eligible for the following tax incentives, described further in Section VI of the solicitation:

1. A one-year partially refundable credit against tax liability for the creation of not less than 50 net new permanent full-time employees.
2. A five-year refundable credit for an owner of an offshore wind facility against tax liability for up to 50% of its qualified total capital investment of not less than $35,000,000 in a facility that will employ not less than 200 net new full-time employees by the fifth year of the applicable certification period.
3. A five-year refundable credit for a tenant of an offshore wind facility against tax liability, provided that: (a) the owner of the facility has made a qualified total capital investment in the facility that equals not less than $35,000,000; (b) the tenant leases and occupies an area of the facility that represents not less than 25% of the owner's qualified total capital investment in the facility; and (c) the tenant will employ, in the aggregate with other tenants at the offshore wind facility, not less than 200 new full-time employees at the facility by the fifth year of the applicable certification period.