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Solar Energy Sales Tax Exemption

Savings Category 
Solar - Passive
Solar Water Heat
Solar Space Heat
Solar Thermal Electric
Solar Thermal Process Heat
Solar Photovoltaics
Solar Pool Heating
Maximum Rebate 


Program Info
Sector Name 
New Jersey Division of Taxation
New Jersey
Program Type 
Sales Tax Incentive
Rebate Amount 

100% exemption

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.