New Jersey
Incentives/Policies for Renewable Energy
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Last DSIRE Review: 10/27/2009
| Incentive Type: |
Property Tax Exemption |
| State: |
New Jersey |
| Eligible Renewable/Other Technologies: |
Solar Water Heat,
Solar Space Heat,
Solar Thermal Process Heat,
Photovoltaics,
Landfill Gas,
Wind,
Biomass,
Hydroelectric,
Geothermal Electric,
Fuel Cells,
Geothermal Heat Pumps,
Direct-Use Geothermal, Resource Recovery,
Tidal Energy,
Wave Energy
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| Applicable Sectors: |
Commercial,
Industrial,
Residential
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| Amount: | 100% of value added by renewable system |
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Authority 1:
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N.J. Stat. § 54:4-3.113a et seq.
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| Date Enacted: | 10/01/2008 |
| Date Effective: | 10/01/2008 |
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Summary:
In October 2008, New Jersey enacted legislation exempting renewable energy systems used to meet on-site electricity, heating, cooling, or general energy needs from local property taxes. (There is not a state component to property taxes in New Jersey). Eligible renewable energy systems* include solar PV, wind, fuel cells, sustainable biomass, geothermal electric, landfill gas, hydroelectric, resource recovery, wave, and tidal systems that produce electricity. Systems that produce energy from solar thermal energy (e.g., solar hot water) or geothermal energy (e.g., geothermal heat pumps) are also eligible for the exemption. The exemption may be claimed for all qualified systems installed on residential, commercial, industrial, or mixed use buildings as accessory uses.
In order to claim the exemption, property owners must apply for a certificate from their local assessor which will reduce the assessed value of their property to what it would be without the renewable energy system. Exemptions will take effect for the year after a certification is granted. The New Jersey Department of Treasury, Division of Taxation is required to develop the rules and regulations necessary to implement this law. Rules relating to the technical qualifications that an eligible renewable energy system must meet will be developed by the New Jersey Board of Public Utilities (BPU) and the Commissioner of Community Affairs.
Click here to access the certification application for renewable energy systems. Contact the New Jersey Department of Treasury for additional information about how the law will be implemented.
* Biomass, hydroelectric, and resource recovery facilities must meet environmental standards as defined by the New Jersey Department of Environmental Protection and minimize environmental and community impacts.
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Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.
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