STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman ALEX SAUICKIE
District 12 (Burlington, Middlesex, Monmouth and Ocean)
Assemblyman GERRY SCHARFENBERGER
District 13 (Monmouth)
Co-Sponsored by:
Assemblywoman Flynn
SYNOPSIS
Provides gross income tax deduction for costs of purchasing and installing whole house backup electrical generator for resident taxpayer’s principal residence.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act providing a gross income tax deduction for the costs of purchasing and installing a whole house backup electrical generator for a resident taxpayer’s principal residence, supplementing Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. A resident taxpayer shall be allowed to deduct from the taxpayer’s gross income for the taxable year the amount paid by the taxpayer during the taxable year for the purchase and installation of a whole house backup electrical generator installed at the taxpayer’s primary residence.
As used in this section, “whole house backup electrical generator” means a natural gas or liquid gas propane fuel powered generator that is permanently connected to the electrical system of a one or two-family residential structure and only operates in the event of a power outage in order to provide backup electrical power to the residential structure, and has been installed, inspected, located and permitted according to any applicable State and local governing unit laws, regulations, code, or ordinance requirements.
2. This act shall take effect immediately.
STATEMENT
This bill allows a gross income tax deduction from a resident taxpayer’s gross income for the amount paid by the taxpayer during the taxable year for the purchase and installation of a whole house backup electrical generator installed at the taxpayer’s primary residence. A whole house backup electrical generator is a natural gas or liquid gas propane fuel powered generator that is permanently connected to the electrical system of a one or two-family residential structure and only operates in the event of a power outage in order to provide backup power to the residential structure. To qualify for the deduction the generator also must have been installed, inspected, located and permitted according to any applicable State and local governing unit laws, regulations, code, or ordinance requirements.
The function of the generator is to provide back-up electrical power for the entire residence when electric power from the local electric utility is interrupted. The tax deduction allowed in this bill will encourage New Jersey homeowners to take steps to ensure their own power supplies and reduce their reliance on electricity supply grids that are vulnerable to blackouts caused by circumstances such as extreme weather, flooding, and drought. Back-up electrical power can protect anyone in the home who depends on a medical device, oxygen tank, CPAP machine, humidifier, air conditioning, or another appliance or device that requires electricity. Keeping home medical devices functioning through a whole house generator would reduce demand on emergency medical services and police during outages. A home owner may also avoid an indoor flood caused by a burst pipe or inoperable sump pump during an interruption of their electricity supply during severe winter weather. A home owner may also avoid the loss of well water supply that relies upon an electric-powered well pump.