Rhode Island issues 10-year tax credit to draw offshore wind business

Dive Brief:

Rhode Island issued a 10-year tax credit for job creation to a global offshore wind turbine maintenance company that would set up its U.S. headquarters in the state's capital, building the local supply chain.
The state's Board of Commerce Corporation approved Boston Energy Wind Power Services, a UK-based company, for up to $86,625 a year. According to the Commerce Corporation, Rhode Island's clean energy economy had a 74% job increase since 2014, with 16,000 jobs, and the job creation tax credit has offered more than $2.79 million over 10 years to draw wind operations and maintenance companies.
Democratic Gov. Gina Raimondo announced on Tuesday the company will make its U.S. base in Providence close enough to be able to support offshore wind development across the Northeast seaboard and to offer turbine-related trainings.

Dive Insight:

Rhode Island has a Qualified Jobs Tax Credit program in place to draw companies to the state.

Boston Energy committed to keeping at least 52 full-time jobs instate for at least 12 years. Boston Energy could access the Qualifying Jobs tax credit after paying state taxes for one year for the new hires it has made.

GEV Wind Power, a large UK-based wind turbine maintenance company, also said it would create about 125 jobs in the state by basing its U.S. headquarters in Providence. The Commerce Corporation's board approved the developer in June to receive up to $1.93 million in tax credits over a 10-year period.

Governors in the area have been bullish on offshore wind.

In New Jersey, a beta version of an offshore wind supply chain registry launched in April, to match offshore wind project investors with state-based partners and suppliers. New Jersey, New York and Massachusetts have set ambitious renewable portfolio targets, making the offshore resource central.

The developers of the Revolution Wind project, Ørsted and investor-owned utility Eversource, in Rhode Island pledged $4.5 million to support offshore wind education and to develop the industry's state-based supply chain. The Revolution Wind project, which will deliver 400 MW to Rhode Island and 304 MW to Connecticut over a 20-year power purchase agreement, could potentially power half the homes in Rhode Island and is expected to create more than 800 clean energy jobs.