To the Editor:
Do you find it shocking that a foreign company would be given federal tax credits to develop a wind farm to produce clean energy? Calm yourself. Oil and gas companies have been given 100% credits for drilling costs for decades.
Although the direct costs of drilling equipment are depreciated over seven years, the intangible lease operating costs, such as administration, accounting, and legal are 100% deductible over the life of the lease.
Does the word “foreign” make you want to grab your pitchfork? Understand America is a capitalist nation. Orsted may be registered as a Danish corporation, but it is owned by shareholders who can be from anywhere.
When America was building its railroads a couple hundred years ago, it was necessary to raise a lot of money. Many investors and buyers of railroad bonds were European.
Do you think filing a lawsuit to block federal tax credits was a smart move? OK, you’re making the nice sounding argument to return the tax credits to ratepayers. Good for you. New Jersey is the only state that requires those tax credits to be returned to ratepayers. The states of New York and Maryland are already taking advantage of New Jersey’s delay. If you were Orsted, wouldn’t you move your supply chain and infrastructure businesses there?
The choice is simple. New Jersey will either become a manufacturing and assembly hub, buying hundreds of tons of American steel and hiring local employees, or the businesses will come from somewhere else.
That’s not even to mention the multiplier effect on the rest of the economy. Whatever is built will require other jobs to maintain and supply and whoever makes money, spends money. Think about it.
Instead of wasting their imagination with dopey fears that tourists will suddenly stop coming to the beach, some smart entrepreneur will use his/her imagination in the real world and make money taking curious tourists on joyful rides to see something more interesting than a sandy strip full of bathers.
My question is this: When opportunity comes knocking, will New Jersey be too slow to open the door? It won’t be long before we know the answer. And yes, do remember who it was that misled you.