Trenton – Continuing its commitment to make New Jersey a national leader in clean energy jobs, last week the Senate passed S-4019 to ensure our employers and workforce remain globally competitive in the rapidly growing American offshore wind industry. Today, Governor Murphy signed the legislation into law.
The law authorizes offshore wind projects approved prior to July 1, 2019 to elect to retain federal tax credits that were authorized for offshore wind projects under the “Inflation Reduction Act of 2022” and other federal laws passed in response to growing inflation and supply-chain issues.
“There is endless potential for creating good, family-wage jobs with clean energy projects in New Jersey,” said Senator Bob Smith, the bill’s sponsor. “This is a great step forward to spark local manufacturing and construction jobs, while we reduce our carbon emissions.”
“I’m incredibly proud of the aggressive clean energy goals we’ve set here in New Jersey,” said Senator Johnson, another sponsor of the bill. “This legislation will go a long way in keeping us on track by ensuring our off shore wind industry has the support it needs to get off the ground.”
New Jersey’s “Global Warming Response Act” calls for a reduction of statewide greenhouse gas emissions to 80 percent below 2006 levels by 2050. The State will need to mobilize greater investment in offshore wind development to meet these goals. New Jersey was the only state that did not allow its offshore wind projects to use the new federal tax incentives. With increased federal incentives now available for a variety of clean energy technologies, S4019 has opened the door for new financial investments to flow into the state.
“We have the greatest workforce in America. With this bill, we are sending a strong message to those employers who want to invest in New Jersey that we are committed to being a leader in offshore wind and the global clean energy economy,” continued Smith.
The law requires offshore wind projects who receive the federal tax credit to make upfront investments in New Jersey’s offshore wind manufacturing infrastructure, including the New Jersey Wind Port in Lower Alloways Creek and the Paulsboro Marine Terminal, both of which will be responsible for creating thousands of union manufacturing jobs in the State.