July 28, 2023
New Jersey

Lawsuit challenges constitutionality of wind farm tax credits

By David Wildstein, July 28 2023 | newjerseyglobe.com

Two non-profit organizations opposing New Jersey’s plan to build offshore wind turbines have filed a lawsuit challenging the constitutionality of the state providing nearly $1 billion in tax credits as illegal special legislation.

“The Legislature’s giveaway of federal tax credits to Orsted benefits a single company in violation of the New Jersey Constitution,” said Bruce Afran, the attorney for the two groups, Protect Our Coast NJ and Defend Brigantine Beach. “In New Jersey, laws that favor a single private party are generally unconstitutional.”

Orsted will receive tax credits to build a 98-unit wind farm off the coast of New Jersey under legislation signed by Gov. Phil Murphy last month. The state Division of Rate Counsel said the project will eventually push the cost of the wind turbines onto ratepayers, and found that no evidence that the company needed the extra funds to continue their work.

“Basically, the Legislature caved to the Danish engineering company,” Afran said, “Giving away a billion dollars in tax credits to relieve Orsted from its commitment to build Ocean Wind 1 from its own money.”

In addition to the two organizations, plaintiffs include two Ocean City residents, Barbara McCall and Frank Coyne, and Bill Westerman, the owner of George’s Candies and George’s Ice Cream in Ocean City. All three, the lawsuit says, are property owners who are electricity subscribers.

The lawsuit was filed in Mercer County.

URL to article:  https://www.wind-watch.org/news/2023/07/28/lawsuit-challenges-constitutionality-of-wind-farm-tax-credits/