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Combined Heat and Power Partnership

Property Tax Exemption for Renewable Energy Systems (NJ)

dCHPP Glossary (PDF) (2 pp, 53K)

Date Last Updated11/16/2012
Incentive TypeTax
State/FederalNJ
Incentive Administrator/Contact OfficeState of New Jersey Department of Treasury
Incentive Initiation Date10/1/2008
Incentive Size and Funding SourceIn 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 RecipientThe exemption may be claimed by all owners of qualified systems installed on residential, commercial, industrial or mixed use buildings as accessory uses.
Eligible FuelLandfill Gas; Woody Biomass; Biogas; Other
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required (%)Does Not Specify
Other Selected Eligibility CriteriaEligible 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 DetailsIn 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.
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