Solar Energy Sales Tax Exemption

Last updated: August 28, 2018

Program Overview

Implementing Sector:State
Category:Financial Incentive
State:New Jersey
Incentive Type:Sales Tax Incentive
Administrator:New Jersey Division of Taxation
Eligible Renewable/Other Technologies:Solar - Passive, Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Solar Photovoltaics, Solar Pool Heating

Authorities

Name:N.J. Stat. § 54:32B-8.33
Date Enacted:1980
Name:N.J.A.C. § 18:24-26.1 et seq.
Effective Date:12/01/2008 (most recent version)

Summary

New Jersey offers a full exemption from the state's sales tax (currently 7%) for all solar energy equipment. This exemption is available to all taxpayers. All major types solar energy equipment, including equipment for passive solar design, are considered eligible for the exemption as described by the New Jersey Division of Taxation Publication S&U-6 (Sales Tax Exemption Administration). According to S&U-6, the exemption includes all solar energy "devices or systems specifically approved by the Board of Public Utilities, Division of Energy and designed to provide heating or cooling or electrical or mechanical power by converting solar energy to some other usable energy source, including devices for storing solar-generated energy." The exemption does not apply to devices that would be required regardless of the energy source being utilized. In order to claim the exemption, the purchaser must fill out and submit Form ST-4 (Exempt Use Certificate) to the seller instead of paying sales tax.

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