Bill Text: NJ S4421 | 2026-2027 | Regular Session | Introduced
Bill Title: Provides 10-year sales and use tax exemption for sales of materials, supplies, and services for certain energy infrastructure projects.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced) 2026-06-08 - Introduced in the Senate, Referred to Senate Economic Growth Committee [S4421 Detail]
Download: New_Jersey-2026-S4421-Introduced.html
Sponsored by:
Senator CARMEN F. AMATO, JR.
District 9 (Ocean)
SYNOPSIS
Provides 10-year sales and use tax exemption for sales of materials, supplies, and services for certain energy infrastructure projects.
CURRENT VERSION OF TEXT
As introduced.
An Act providing a temporary sales and use tax exemption for sales of materials, supplies, and services for certain energy infrastructure projects.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Receipts from sales made to contractors, subcontractors, or repairmen of materials, supplies, or services that are exclusively used for the completion of a qualified energy infrastructure project shall be exempt from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) for the duration of the exemption period.
b. As used in this section:
"Exemption period" means the period beginning on or after January 1 of the year next following the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill) and ending on December 31 of the tenth year following the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Qualified energy infrastructure project" means the construction of a new energy generation facility or a major improvement made to an existing energy generation facility. A qualified energy infrastructure project shall include, but not be limited to, the completion of a new energy storage system or an improvement to an existing energy storage system at an energy generation facility.
c. The Director of the Division of Taxation shall, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations as necessary to implement this act.
2. This act shall take effect immediately.
STATEMENT
This bill provides a 10-year sales and use tax exemption for sales made to contractors, subcontractors, or repairmen of materials, supplies, or services that are exclusively used for the completion of a qualified energy infrastructure project.
A qualified energy infrastructure project is defined as the construction of a new energy generation facility or a major improvement made to an existing energy generation facility. The bill specifically includes as a qualified energy infrastructure project the completion of a new energy storage system or an improvement to an existing energy storage system at an energy generation facility.
The sales and use tax exemption period would begin on or after January 1 of the year next following the date of the bill's enactment and end on December 31 of the tenth year following the date on which the exemption period first began.
