2023 New Jersey Revised Statutes
Title 48 - Public Utilities
Section 48:3-87.2a - Findings, declarations.
48:3-87.2a Findings, declarations.
1. The Legislature finds and declares that:
a. Offshore wind, as a source of clean, renewable energy, provides opportunities for New Jersey to reduce dependence on fossil fuels that contribute to climate change, while significantly expanding and securing the State's economy for the short and long term.
b. The COVID-19 global pandemic, declared by the World Health Organization on March 11, 2020, created significant challenges for the United States and global economies, including labor shortages and supply chain disruptions, which, combined with other factors, have resulted in rising interest rates.
c. To support the offshore wind industry in light of the unique macroeconomic challenges posed by the COVID-19 pandemic, the federal "Taxpayer Certainty and Disaster Tax Relief Act of 2020," Pub.L.116-260, included an investment tax credit rate of 30 percent for offshore wind projects.
d. Economy-wide inflation rates in the United States were higher in 2021 and 2022 than at any time since the early 1980s.
e. On February 24, 2022, the Russian Federation invaded Ukraine, starting a war that, in addition to causing a horrific loss of life and human suffering in Ukraine, has further exacerbated global market disruptions and further contributed to commodity shortages and higher rates of inflation.
f. The federal "2022 Inflation Reduction Act," Pub.L.117-169, was designed to further spur investment in the American clean energy economy in the face of continuing macroeconomic challenges.
g. The federal "2022 Inflation Reduction Act," Pub.L.117-169, includes wage and apprenticeship requirements to receive the full offshore wind investment tax credit and includes additional investment tax credits for clean energy projects that source components and materials manufactured in the United States.
h. In light of Congress' intention to provide tax credits to support and bolster the offshore wind industry and the production of offshore wind energy in the United States, and in light of the high rates of inflation and unprecedented macroeconomic challenges arising from the global pandemic and war in Ukraine, it is appropriate to reexamine the allocation of tax benefits arising from the "Taxpayer Certainty and Disaster Tax Relief Act of 2020," Pub.L.116-260, the Research and Development Tax Credit under 26 U.S.C. s.41, and the "2022 Inflation Reduction Act," Pub.L.117-169, and, for these specific federal statutes only, to allow for a qualified offshore wind project to elect to retain the benefit of the federal tax credits that were not in existence at the time of a qualified offshore wind project's award in exchange for pledged assurances that the qualified offshore wind project will proceed to construction and that it will make additional investments in New Jersey offshore wind manufacturing facilities.
L.2023, c.99, s.1.
