Wind Manufacturing Tax Credit (New Jersey)

From Open Energy Information


Last modified on February 12, 2015.

Financial Incentive Program

Place New Jersey

Name Wind Manufacturing Tax Credit
Incentive Type Industry Recruitment/Support
Applicable Sector Commercial, Industrial
Eligible Technologies Wind
Active Incentive No
Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 100% of the qualified capital investment

Start Date 2010-08-19
Expiration Date 01/13/2013 (initial application deadline)
01/13/2016 (documentation for approval submission deadline)
The date "01/13/2013 (initial application deadline)<br> 01/13/2016 (documentation for approval submission deadline)" was not understood.

Maximum Incentive No specific per project limitation; 100 million limit for all offshore wind tax credits (may be exceeded if EDA deems appropriate)

Terms Minimum 50 million investment and 300 new full-time employees; facilities must be located within a qualified wind energy zone (i.e., the South Jersey Port District); investment must yield a net positive benefit for the state; sales and transfers permitted subject to certain limitations.
Program Administrator New Jersey Economic Development Authority

References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


NOTE: As of September 2013, this program is no longer accepting any new applications.

In August 2010 New Jersey enacted legislation (S.B. 2036) creating an offshore wind resource requirement within the state renewables portfolio standard (RPS) and tax incentives for certain businesses engaged in manufacturing wind energy equipment. The term "business" is defined to include corporations subject to the state franchise tax, corporations subject to the state's insurance premiums tax, as well as partnerships, S-corporations, and limited liability corporations. The allowable tax credit is equal to 100% of the qualified capital investment made by a business. The applicant must demonstrate the state's financial support of the facility will yield a net positive benefit for the state. The program is administered by the New Jersey Economic Development Authority (EDA).

In order to qualify for the tax credit, a business must make a minimum capital investment of $50 million in a qualifying wind energy facility which employs at least 300 new full-time employees. A tenant occupying a leased area within a qualifying wind energy facility must meet a minimum investment threshold of $17.5 million. The term qualifying wind energy facilities is defined as "any building, complex of buildings, or structural components of buildings, including water access infrastructure, and all machinery and equipment used in the manufacturing, assembly, development or administration of component parts that support the development and operation of a qualified offshore wind project, or other wind energy project* as determined by the authority, and that are located in a wind energy zone." A "wind energy zone" is defined as property within the South Jersey Port District.

The offshore wind portion of this tax credit operates as an addition to 2007 legislation creating the Urban Transit Hub Tax Credit. Tax credits for qualifying wind facilities are generally limited to $100 million in aggregate, although the EDA has discretion to allocate tax credits that exceed this cap to "meritorious" projects if sufficient tax credit volume is available. In total, the EDA may not allocate Urban Transit Hub Tax Credits exceeding $1.75 billion. Businesses must apply for a tax credit to the EDA by January 13, 2013 (five years after the effective date of the original Urban Transit Hub Tax Credit Act), and submit documentation for approval of the credit amount by January 13, 2016 (eight years after the original effective date).

Businesses may take the tax credit in equal increments over a 10-year period, beginning with the tax period for which the business is first approved as having met the required investment and employment qualifications. In lieu of taking the tax credit, a business may apply to the EDA for a certificate that allows them to transfer the tax credit to another party. Any tax credit sales that take place under this allowance must be for at least 75% of the face value of the credit.

*While most sections of S.B. 2036 apply to specifically to offshore wind energy, it appears that based on this definition, wind energy manufacturing facilities in general qualify for tax credits.

Incentive Contact

Contact Name Business Service Center - NJ EDA
Department New Jersey Economic Development Authority

Phone (866) 534-7789


Authorities (Please contact the if there are any file problems.)

Authority 1: N.J. Stat. § 34:1B-207 et seq.
Date Effective 08/19/2010 (wind energy specific portion)
Date Enacted 08/19/2010 (wind energy specific portion; subsequently amended)

Authority 2: N.J. Stat. § 48:3-51
Date Enacted 1999 (subsequently amended)

Authority 3: S.B. 1562
Date Enacted 2012-08-07

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


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