THE BIDEN ADMINISTRATION came through with tax guidance on Friday that may help reduce the price of power in the state’s upcoming offshore wind procurement, but it will probably have people in Barnstable scratching their heads.
The new guidance expands eligibility for a bonus that would increase the investment tax credit for eligible offshore wind projects from 30 percent to 40 percent. Since each project represents an investment of billions of dollars, the new guidance and the 10 percentage-point boost could have a significant impact on a selected project’s overall cost and its ultimate electricity price.
The guidance was issued in the nick of time. The Healey administration originally planned to accept bids for its next procurement on January 31, but put off action until Wednesday in the hope that the Biden administration would issue the favorable guidance. Offshore wind developers now have five days to put the…
