Create an Anchor Company Tax Credit

Wind turbines can have up to 8,000 components, representing a significant hurdle in supply chain management. Large in-state wind component manufacturers can be encouraged to bring other members of the supply chain into the state through an Anchor Company Tax Credit.

Rhode Island created an Anchor Institution Tax Credit to bolster the offshore wind industry. If a Rhode Island anchor company is responsible for a job-creating supplier locating in Rhode Island, the anchor company receives a tax credit. For instance, if a wind developer lures a manufacturer of subsea cables, the wind developer will receive a tax credit.

States could implement a policy similar to Rhode Island’s Anchor Institution Tax Credit to create a robust supply chain and wind manufacturing center. The credit could be extended to other industries in the state with complex supply chains, contingent on the number of local jobs created. With its complex supply chain needs, incentives like the Anchor Company Tax Credit could boost the wind manufacturing industry—resulting in good-paying jobs.