Tax Exemption
Pay No Sales Tax!
All labor and equipment involved in installing your Solar Electric System in New Jersey is completely exempt from all sales tax. This exemption from New Jersey's 7% sales tax applies to both residential and commercial solar customers. It is available to all taxpayers.
The statute directed the New Jersey Division of Energy Planning and Conservation in the Department of Energy to establish technical standards for qualifying solar-energy systems. Although the regulations defining eligible systems expired in 2000, the exemption from the state's sales tax is still in effect.
Pay No Additional Property Tax
New Jersey enacted legislation in October 2008 exempting renewable energy systems used to meet on-site electricity from local property taxes. The exemption may be claimed for all qualified systems installed on residential, commercial, industrial, or mixed use buildings as accessory uses.
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 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.
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