Connecticut lawmakers and officials celebrated new tax incentives for offshore wind development at the New London State Pier on Monday.
The tax credits come as the industry struggles with soaring inflation and interest rates, and supply chain issues. They’re part of the Inflation Reduction Act, signed by President Joe Biden.
U.S. Sen. Richard Blumenthal (D-CT) said new subsidies will make a difference.
“This tax credit has been a long time in coming; it’s overdue; we pushed for it as a delegation," Blumenthal said. "It’s in federal law, and the regulation enables it to go forward. And we need to make sure that ports like New London are fully eligible for it.”
The tax credit is worth up to 40% for a wind developer who sites their facility in an area that has historically relied on fossil fuel for employment.
State Environmental Commissioner Katie Dykes said the credits are timely — Connecticut is seeking new offshore wind contracts this week.
“Bids are due in a historic RFP that Connecticut is undertaking together with our sister states in Rhode Island and Massachusetts,” Dykes said. “We’re out shopping for up to 6800 megawatts across the three states of offshore wind.”
Port cities like New Haven, Bridgeport and New London could all become “energy communities” under the new rules, making them attractive sites for offshore wind developers.
