Port Authority of NY and NJ Tries to Catch the Wind – and its Tax Credits

A bill that would add the Port District of the Port Authority of New York and New Jersey to the definition of “wind energy zones” in the newly adopted Offshore Wind Economic Development Act, was reported out of the Senate Budge and Appropriations Committee on September 13, 2010. The amendment would allow tax credits for qualified wind energy facilities in the Port District.

The Port District encompasses an area within a radius of about 25 miles of the Statue of Liberty. According to the committee statement, the bill would not affect the total amount of tax credits available for wind energy facilities. Of course, the addition of another wind energy zone could reduce the amount of tax credits available for other wind energy facilities.

There are currently three offshore wind projects underway off the coast of New Jersey.

The proponents of this bill and the Offshore Wind Economic Development Act are hoping that the development of wind energy facilities will not only lower dependence on fossil fuel energy sources, but lead to increased economic development activity, including ancillary component manufacturing.

Not everyone is a fan of wind energy. As reported in a previous blog wind projects have been the subject of protest, military concern and worry in the blogosphere.

As the committee statement noted, “it is too early to determine if, and to what degree, the development of wind energy projects will benefit the State’s economy.”