Offshore Wind 2024 Tax Incentives

The Challenge: Localize the Offshore Wind Supply Chain and Expand Economic Development 

Global demand for offshore wind deployment is increasing and existing suppliers are challenged with production capacity to support the entire industry. While the U.S. offshore wind industry has several projects under construction and others in the pipeline, the majority of the supply chain is foreign-based. Developing a domestic supply chain will reduce reliance on international manufacturers, create local jobs and economic benefits, and help control cost. 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. The Massachusetts Clean Energy Center (MassCEC) is offering its second year of a new Offshore Wind Tax Incentive Program with the goal of stimulating investments in new or substantially renovated offshore wind manufacturing facilities and expanding on offshore wind industry-related employment opportunities.

About Offshore Wind 2024 Tax Incentives

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 2024 to certified companies engaged in offshore wind development, manufacturing, or commercialization for the offshore wind industry within Massachusetts.

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 10 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 the facility and the facility 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 total leasable square footage of the facility; and (c) the tenant will employ not less than 50 net new full-time employees at the facility by the fifth year of the applicable certification period.