Mass. Gen. Laws ch. 23J, sec. 8A — MA Code / Part I / Title II / Chapter 23J / Section 8A
Massachusetts offshore wind industry investment program; certification of offshore wind company; offshore wind tax incentive program
Status: in_force

[Subsection (a) effective until January 1, 2033. For text effective January 1, 2033, see below.]

[Subsection (a) effective until January 1, 2033. For text effective January 1, 2033, see below.]

Section 8A. (a) There shall be established and placed within the center a Massachusetts offshore wind industry investment program that shall be administered by the center. The purpose of the program shall be to develop and expand offshore wind industry-related employment opportunities in the commonwealth and to promote renewable energy-related economic development in the commonwealth by supporting and stimulating manufacturing and related supply chain capacity in the offshore wind industry. Certified offshore wind companies shall be eligible for participation in the program, which shall consist of the offshore wind tax incentive program established in subsection (d) and access to expenditures pursuant to the Massachusetts Offshore Wind Industry Investment Trust Fund established in section 9A.

[Subsection (a) as amended by 2022, 179, Sec. 15 and 2022, 268, Sec. 30 effective January 1, 2033. See 2022, 179, Sec. 98 as amended by 2022, 268, Sec. 248. For text effective until January 1, 2033, see above.]

(a) There shall be established and placed within the center a Massachusetts offshore wind industry investment program that shall be administered by the center. The purpose of the program shall be to develop and expand offshore wind industry-related employment opportunities in the commonwealth and to promote renewable energy-related economic development in the commonwealth by supporting and stimulating manufacturing and related supply chain capacity in the offshore wind industry. Certified offshore wind companies shall be eligible for participation in the program, which shall consist of access to expenditures pursuant to the Massachusetts Offshore Wind Industry Investment Trust Fund established in section 9A.

(b) The center may, upon a majority vote of the board, certify an offshore wind company as a certified offshore wind company upon: (i) the timely receipt, as determined by the center, of a certification proposal supported by independently verifiable information, signed under the pains and penalties of perjury by a person expressly authorized to contract on behalf of the offshore wind company and shall include, but not be limited to, an estimate of the projected new state revenue the offshore wind company expects to generate during the period for which the company seeks certification, together with a plan that shall include, but not be limited to: (1) precise goals and objectives, by which the offshore wind company proposes to achieve the projected new state revenue; (2) an estimate of the number of permanent full-time employees to be hired or retained; (3) an estimate of the year in which the company expects to hire or retain the employees; (4) an estimate of the projected average salaries of said employees; (5) an estimate of the projected taxable income pursuant to chapter 62 generated by said employees; (6) an estimate of the methods by which the company shall obtain new employees and pursue a diverse workforce; and (7) if applicable, an estimate of the company's planned capital investment in the commonwealth; and (ii) findings made by the center, based on the certification proposal, documents submitted therewith and any additional investigation by the center that shall be incorporated in its approval, that: (1) the offshore wind company is likely to contribute substantially to the manufacture, fabrication and assembly within the commonwealth of domestic supply chain components of the offshore wind industry; (2) the offshore wind company has a substantial likelihood of meeting all statutory requirements and any other criteria that the center may prescribe including, but not limited to, criteria in the following areas: (A) leveraging additional funding or attracting additional resources to the commonwealth; (B) increasing the manufacture, fabrication and assembly within the commonwealth of domestic supply chain components of the offshore wind industry; and (C) creating employment in the commonwealth; and (3) the offshore wind company has a substantial likelihood of meeting its state revenue, employment growth and applicable capital investment projections, as specified in the certification proposal, over the period for which it receives benefits.

(c)(1) Certification granted pursuant to subsection (b) shall be valid for 5 years starting with the tax year in which certification is granted. Each certified offshore wind company shall file an annual report with the center certifying whether it has met the specific targets established in the proposal pursuant to clause (i) of subsection (b) and, if not, detailing its progress towards those targets.

(2) The certification of an offshore wind company may be revoked by the center after an investigation by the center and a determination that the certified offshore wind company is in material noncompliance with its certification proposal; provided, however, that the center shall review said certified offshore wind company at least annually. Revocation shall take effect on the first day of the tax year in which the center determines the certified offshore wind company to be in material noncompliance. The center shall issue regulations to establish a process to recapture the value of any award issued to a certified offshore wind company through the Massachusetts Offshore Wind Industry Investment Trust Fund established in section 9A. The commissioner of revenue shall, as of the effective date of the revocation, disallow any credits allowed by the original certification of tax benefits under this section. The department of revenue shall issue regulations to establish a process to recapture the value of any credits allowed by the certification under this section. For the purposes of this paragraph, the term ''material noncompliance'' shall mean the failure of a certified offshore wind company to substantially achieve the new state revenue, job growth and capital investment projections set forth in its certification proposal or any other act, omission or misrepresentation by the certified offshore wind company that frustrates the public purpose of the Massachusetts offshore wind industry investment program.

(3) Nothing in this subsection shall limit any legal remedies available to the commonwealth against any certified offshore wind company.

[Subsection (d) added by 2022, 179, Sec. 14 effective August 11, 2022 until January 1, 2033. Deleted by 2022, 179, Sec. 97 as amended by 2022, 268, Sec. 248. See 2022, 179, Sec. 98 as amended by 2022, 268, Sec. 248.]

(d) There shall be established an offshore wind tax incentive program. The center, in consultation with the department of revenue, may annually authorize incentives, including those established in subsections (bb) and (cc) of section 6 of chapter 62 and sections 38LL and 38 MM of chapter 63, that shall not exceed $35,000,000 annually. The center, in consultation with the department of revenue, may limit the incentives to a specific dollar amount or time duration or in any other manner deemed appropriate by the department of revenue; provided, however, that the department of revenue shall only allocate the incentives among certified offshore wind companies.

The center, in consultation with the department of revenue, shall provide an estimate to the secretary of administration and finance of the tax cost of extending benefits to a proposed project before certification, as approved by the commissioner of revenue, based on reasonable projections of project activities and costs. Tax incentives shall not be available to a certified offshore wind company unless expressly granted by the secretary of administration and finance in writing.