Bill Text: NJ S1454 | 2014-2015 | Regular Session | Introduced
Bill Title: Provides tax credit against gross income tax for cost of certain property that conserves energy or promotes energy efficiency and for other energy efficiency measures.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-02-27 - Introduced in the Senate, Referred to Senate Environment and Energy Committee [S1454 Detail]
Download: New_Jersey-2014-S1454-Introduced.html
Sponsored by:
Senator LINDA R. GREENSTEIN
District 14 (Mercer and Middlesex)
SYNOPSIS
Provides tax credit against gross income tax for cost of certain property that conserves energy or promotes energy efficiency and for other energy efficiency measures.
CURRENT VERSION OF TEXT
As introduced.
An Act providing a credit against the gross income tax for the cost of purchasing and installing certain property that conserves energy or promotes energy efficiency and other energy efficiency measures, and supplementing Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Certified contractor" means a firm, designated by the Building Performance Institute, Inc. as an accredited home performance contractor, that performs an energy audit or installs property that conserves energy or promotes energy efficiency in a residential, commercial, or institutional building under the requirements of the "Home Performance with Energy Star" program for single-family dwellings or the "Energy Star" program for commercial, institutional, or multi-family buildings, as appropriate.
"Energy audit" means an assessment of all energy-using systems to determine the consumption characteristics of a residential, commercial, or institutional building within this State and shall include: (1) an identification of the type, size, and rate of energy consumption of the building; (2) an identification of the appropriate energy conservation maintenance and operating procedures; and (3) an indication of the need, if any, for the acquisition and installation of energy conservation and efficiency measures.
"Energy Star program" means a program, established pursuant to 42 U.S.C. s.6294a and administered by the federal Environmental Protection Agency and the federal Department of Energy, which identifies and promotes energy-efficient products and buildings.
"Home Performance with Energy Star" program means an Energy Star program for single-family dwellings, initiated by the federal Environmental Protection Agency and the federal Department of Energy and administered by the Board of Public Utilities, that offers a comprehensive, whole-house approach to improving energy efficiency and comfort at home, while helping to protect the environment.
"Property that conserves energy or promotes energy efficiency" means those products and equipment that meet the energy conservation and efficiency standards under the "Home Performance with Energy Star" program for single-family dwellings or the "Energy Star program" for commercial, institutional, or multi-family buildings, including heating, cooling and plumbing systems and equipment, interior or exterior insulation, windows or doors, air sealing equipment, and any electrical system upgrades when done in conjunction with energy efficiency upgrades, but "property that conserves energy or promotes energy efficiency" shall not include renewable energy systems, appliances, computer and electronics equipment, or lighting fixtures and fans.
"Renewable energy system" has the same meaning as prescribed for that term under section 1 of P.L.2008, c.90 (C.54:4-3.113a).
2. a. For tax years commencing on or after January 1, 2014 and ending on or before December 31, 2015, a taxpayer shall be allowed a credit against the tax otherwise due under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount prescribed under this section, for the cost of an energy audit when done by a certified contractor, and on the purchase price and installation costs of property that conserves energy or promotes energy efficiency that has been purchased, installed by a certified contractor, and put into use in this State in a residential, commercial, or institutional building in existence on the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill). The credit shall be allowed in the taxable year in which the audit is performed or the property is placed in service, as the case may be. An unused credit may be carried forward, if necessary, for use in the first taxable year following the taxable year for which the credit is allowed.
The amount of the credit allowed by this section shall be as follows:
(1) for the cost of an energy audit and the purchase and installation costs of property that conserves energy or promotes energy efficiency at a single family dwelling owned by the taxpayer, an amount up to $7,500 of the cost; and
(2) for the cost of an energy audit and the purchase and installation costs of property that conserves energy or promotes energy efficiency at any commercial, institutional, or multi-family building owned by the taxpayer, an amount up to $15,000 of the cost.
b. A taxpayer claiming any other credit allowed under N.J.S.54A:1-1 et seq. with respect to property that conserves energy or promotes energy efficiency may not take the credit allowed under this section with respect to the same property. A taxpayer may not take the credit allowed under this section for property that conserves energy or promotes energy efficiency that the taxpayer leases from another unless the taxpayer obtains the lessor's written certification that the lessor will not claim a credit under any other law of this State with respect to the property.
If the credit allowed under this section reduces the tax liability otherwise due to zero, any amount of credit remaining shall be paid to the taxpayer as a refund of an overpayment of tax pursuant to N.J.S.54A:9-7; provided, however, that subsection (f) of that section, concerning the allowance of interest, shall not apply. The director shall determine the form and manner by which a taxpayer shall apply for and receive a refund of an overpayment pursuant to this section.
c. In consultation with the Commissioner of Environmental Protection and the Board of Public Utilities, the Director of the Division of Taxation shall develop, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), technical criteria for determining eligibility under this section for property that conserves energy or promotes energy efficiency.
3. This act shall take effect immediately.
STATEMENT
This bill gives New Jersey gross income taxpayers, for a two-year period starting on January 1, 2014, a credit for expenses incurred for the performance of an energy audit and the purchase and installation cost of "property that conserves energy or promotes energy efficiency," as that term is defined in the bill, that has been purchased, installed by a certified contractor, and put into use in this State at a taxpayer's single-family dwelling or commercial, industrial, institutional, or multi-family building in existence on the effective date of the bill. The credit is to be allowed in the taxable year in which the audit is performed or the property is placed in service. An unused credit may be carried forward, if necessary, for use in the first taxable year following the taxable year for which the credit is allowed. The purpose of this bill is to encourage taxpayers to install property that conserves energy or promotes energy efficiency to increase the energy efficiency and environmental friendliness of New Jersey's homes and businesses.
Under this bill, gross income taxpayers may receive a tax credit not exceeding the applicable amounts as follows: 1) for the performance of an energy audit or for the cost of purchasing and installing property at a single-family dwelling owned by the taxpayer, an amount up to $7,500; and 2) for the performance of an energy audit or for of the cost of purchasing and installing property at any commercial, industrial, institutional, or multi-family building owned by the taxpayer, an amount up to $15,000.
The bill limits the number of times property that conserves energy or promotes energy efficiency may generate a credit to one. To ensure the technical expertise necessary to administer this bill, the Director of the Division of Taxation is required to consult with the Commissioner of Environmental Protection and the Board of Public Utilities to develop technical criteria for determining eligibility for property that conserves energy or promotes energy efficiency.
