Solar Energy Sales Tax Exemption

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Eligibility: 
Commercial
Industrial
Residential
Savings Category: 
Solar - Passive
Solar Water Heat
Solar Space Heat
Solar Thermal Electric
Solar Thermal Process Heat
Solar Photovoltaics
Solar Pool Heating
Maximum Rebate: 

None

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

100% exemption

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.