Cogeneration Facility Sales Tax Exemption (New Jersey)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Cogeneration Facility Sales Tax Exemption|
|Incentive Type||Sales Tax Incentive|
|Applicable Sector||Commercial, Industrial|
|Energy Category||Renewable Energy Incentive Programs|
|Program Administrator||New Jersey Division of Tax Services|
|Date added to DSIRE||2005-06-16|
|Last DSIRE Review||2005-07-12|
Under the Energy Tax Reform Act, a sales tax is imposed on natural gas and electricity. However, there is an exemption for the purchase and use of natural gas and utility service that is used for cogeneration if the cogeneration facility was in operation or had filed a operating or construction permit on or before March 10, 1997. To apply for the exemption, the cogeneration facility will issue an Exempt Use Certificate (ST-4) to natural gas vendors.
Exempt Use Certificate (ST-4): http://www.state.nj.us/treasury/taxation/pdf/other_forms/sales/st4.pdf
If the cogeneration facility came into operation after March 10, 1997, the purchase of natural gas and utility service may be tax exempt if it is used to generate electricity that is (1) used for resale or (2) sold to an end user other than the owner of the cogeneration facility. A Direct Pay Certificate will be issued to the facility and the facility will self-assess on a quarterly basis that the electricity generated fits into one of these two categories.
Authorities (Please contact the if there are any file problems.)
|Authority 1:||NJSA §54:32B-8.46|
|Contact Name||Denise Lambert|
|Department||New Jersey Division of Tax Services|
|Address||PO Box 269|
|Place||Trenton, New Jersey|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.