SALEM — The Healey-Driscoll administration recently filed legislation that would make changes to the offshore wind tax credit program to redirect up to $70 million to the first phase of construction of the Salem offshore wind terminal project.
House Bill 5377, filed by Healey on April 15, would redirect up to $70 million over fiscal year 2026 and fiscal year 2027 that is now budgeted for an underutilized offshore wind tax incentive into a Massachusetts Clean Energy Center (MassCEC) fund to support the wind port’s first phase of construction.
The Offshore Wind Tax Incentive Program was intended for an owner of an offshore wind facility, rather than projects like ports and terminals like the one planned for Salem. With none of the offshore installations advancing at this point, MassCEC has received no applications for the program over the past two years, despite continuing to budget for the statutory cap of $35 million in both years.
The terminal is being constructed on 42 acres of land along Derby Street and Fort Avenue, the former site of an oil and coal power plant. The terminal is expected to provide a centralized hub for deploying offshore wind turbine components to future clean energy projects. Once completed, it will be the second offshore wind terminal in the state behind the one in New Bedford, which opened in 2015.
Phase one of the project to redevelop the terminal main berth will be managed by MassCEC, with Crowley Wind Services anticipated to provide project management support and leveraging final construction designs and plans, permits and approvals.
If approved by the Legislature, this allocation would complete the funding gap necessary for the phase one berth, which could then begin construction.
Pre-construction on the project started after the groundbreaking in August 2024, and Crowley has since completed the RFP process and issued a Notice of Intent to Award to a general contractor to support the next phase of construction.
“As market conditions and policy dynamics continue to evolve, we are working closely with the city of Salem and the Commonwealth of Massachusetts on next steps such as project construction phasing and timeline,” Crowley said in a statement to The Salem News. “We support Gov. Maura Healey and Lt. Gov. Kim Driscoll’s leadership in advancing investment in the Salem terminal.”
Further information about the project is available at salemoffshorewind.com.
Michael McHugh can be contacted at mmchugh@northofboston.com or at 781-799-5202