New London ― State officials say the expanded eligibility of federal tax credits for offshore wind projects announced on Friday by the Biden Administration comes at an opportune time.

The bidding period for new offshore wind power projects in Connecticut closes on Wednesday, and offshore wind developers have spent the last year struggling with cost increases associated with inflation, high interest rates and supply chain issues. Some companies have canceled, postponed or tried to rebid projects in the U.S. and abroad.

On Friday, the Treasury Department issued new guidance on the offshore wind tax credits that state Department of Energy and Environmental Protection Commissioner Katie Dykes said provides clarity and incentives that will help drive new investments and secure lower-cost wind power in a state that has a goal of a zero-carbon grid by 2040.

Dykes on Monday was among a host of state and local officials to join U.S. Sen. Richard Blumenthal, D-Conn., at State Pier, the site of an offshore wind staging and assembly facility. The group celebrated the news that in addition to the 30% tax credit already available for renewable energy developments, another 10% bonus credit is available for projects in locations deemed as “energy communities.” Energy communities are areas that have experienced job losses, economic distress or serious health ramifications because of proximity to polluted industrial sites known as brownfields or coal- or gas-fired power plants.

The tax credit program is part of the 2022 federal “Inflation Reduction Act,” and Blumenthal said he expects that places like New London, New Haven and other areas of the state being eyed for development by the offshore wind industry would be deemed energy communities and benefit as a result.

“(Offshore wind) is our future, we need to make sure we realize its full potential,” Blumenthal said.

With the list of energy communities not yet established, it remains unclear if New London qualifies and why.

Connecticut has just one contract for offshore wind power, the 300 megawatts associated with Ørsted and Eversource’s 704-megawatt Revolution Wind. That project is under construction and will be staged at State Pier this spring.

Paul Lavoie, chief manufacturing officer for Connecticut and chairman of the board for the Connecticut Wind Collaborative, said federal tax credits provide needed incentives for the offshore wind companies to invest in Connecticut. Aside from State Pier, which Lavoie called the “epicenter of the offshore wind industry,” the tax credits open more opportunities for the state’s other deep water ports in Bridgeport and New Haven.

“Having the full benefits of the Inflation Reduction Act working here in New England, working here in Connecticut, means that we will be assured that offshore wind will be more affordable as we look to invest in this important resource,” Dykes said.

The state in the latest bid solicitation joined with Massachusetts and Rhode Island, and could decide to buy up to 2,000 megawatts of offshore wind power. Together, the three states are seeking up to 6,800 megawatts.

U.S. Rep Joe Courtney in a statement said the Treasury Department up until Friday had provided a “limited path for credit eligibility for offshore wind projects,” and that New London and projects at State Pier were unlikely to receive the bonus credit.

Courtney said the new guidance is “game-changing news for southeastern Connecticut” that will provide incentives for future offshore wind projects to select locations like State Pier.

“Today’s announcement, coupled with the offshore wind projects already taking place in the Long Island Sound, will further cement our region’s leading role in clean energy production, which is good for the economy, homeowners, and our climate,” Courtney said.

Blumenthal on Monday also highlighted $3.3 million in federal funding for the University of Connecticut to advance an electric grid powered by wind and solar energy.

g.smith@theday.com