Press Release  Healey-Driscoll Administration Praises New Biden Offshore Wind Tax Guidance

BOSTON — Massachusetts Energy and Environmental Affairs Secretary Rebecca Tepper issued the following statement on the U.S. Department of the Treasury’s release of guidance expanding eligibility for the Inflation Reduction Act’s (IRA) 10% Energy Communities bonus tax credit to the Investment Tax Credit (ITC) and Production Tax Credit (PTC) for offshore wind and other clean energy resources. 

“We’re grateful to the Biden-Harris Administration for issuing this important guidance to support our growing offshore wind industry in Massachusetts, the region, and the east coast. As our region solicits bids for the next round of offshore wind projects, this tax guidance represents a down payment on energy independence for the entire country and an investment in clean, affordable energy for Massachusetts families and businesses. We look forward to receiving competitive bids next week and continuing to advance the offshore wind industry for the good of Massachusetts, the country, and the world.” 

Massachusetts has been a leading voice on these federal tax credits, which are critical to lowering the price of offshore wind for consumers. On September 13, Governor Maura Healey, with the Governors of Connecticut, Maryland, New Jersey, New York, and Rhode Island, sent a letter to President Biden requesting prompt federal action to support the development of the domestic offshore wind industry. The Healey-Driscoll Administration also joined Connecticut, Maryland, New Jersey, New York, and Rhode Island in filing comments with Treasury outlining the changes needed to support the offshore wind, including broad availability of the IRA’s Energy Communities bonus tax credit for offshore wind. In addition, Secretary Tepper sent a letter to the White House underscoring the need for an immediate supplement to Treasury’s Energy Communities guidance to give developers enough time to incorporate this guidance into their project pricing and help ensure more affordable offshore wind bids in the state’s fourth offshore wind solicitation. In January, Governor Maura Healey welcomed Treasury Secretary Janet Yellen on a tour of Roxbury Community College and advocated for clarity before Massachusetts received new bids. 

The Massachusetts Department of Energy Resources (DOER) is overseeing the bidding process for the state’s fourth competitive offshore wind solicitation. Proposals from offshore wind developers are due to be submitted to DOER on Wednesday, March 27. As part of this solicitation, DOER entered into a historic multistate agreement with Connecticut and Rhode Island to review bids jointly which would allow developers to propose larger projects to states, with the goal of driving down costs, providing certainty, and promoting regional economic development. Earlier this month, DOER posted an updated bidder question and answer that clarifies how bidders should incorporate new tax credits, including the Energy Communities bonus, into their bids. 

Today’s guidance—expanding eligibility for the Energy Communities bonus—gives bidders greater certainty as they finalize their bids for March 27 and bolsters Massachusetts’ efforts to procure affordable, carbon-free energy from offshore wind, a major economic driver for the Northeast and cornerstone of Massachusetts’ decarbonization strategy. 

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