Combined Heat and Power Partnership
Property Tax Exemption for Renewable Energy Systems
| Date Last Updated | 11/16/2012 |
| Incentive Type | Tax |
| State/Federal | NJ |
| Incentive Administrator/Contact Office | State of New Jersey Department of Treasury |
| Incentive Initiation Date | 10/1/2008 |
| Incentive Size and Funding Source | 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). The exemption is equal to 100% of the value added by the renewable energy system. Exemptions will take effect for the year after a certification is granted. |
| Eligible Recipient | The exemption may be claimed by all owners of qualified systems installed on residential, commercial, industrial or mixed use buildings as accessory uses. |
| Eligible Fuel | Landfill Gas; Woody Biomass; Biogas; Other |
| Eligible Project Size (MW) | Does Not Specify |
| Minimum Efficiency Required (%) | Does Not Specify |
| Other Selected Eligibility Criteria | 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. 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. |
| Application Form(s) | Application Form (PDF) (2 pp, 40.6K) |
| Other Incentive Details | 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. |
| Resource Website(s) |
