NJ Passes Property Tax Legislation with Breaks for Renewable Energy Systems
On October 1, 2008, New Jersey Governor John Corzine signed legislation that will allow property owners to exempt certain renewable energy systems from the annual assessed value of their real property. The legislation broadly defines renewable energy to include electricity produced from many renewable sources, including solar technologies, wind energy, geothermal technologies and methane gas. Renewable energy systems are defined as any equipment that is part of a residential, commercial, industrial or mixed use building that produces renewable energy on-site to provide all or a portion of the building's energy needs. To qualify for the exemption, the local code enforcement authority must certify that the property's energy system is a renewable energy system as defined by the Act, and the certification must be forwarded to the local tax assessor. The exemption is effective for the tax year following the year in which the certification was granted, and for each year thereafter during the system's use.