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A1866
ASSEMBLY, No. 1866
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman JAMES J. KENNEDY
District 22 (Somerset and Union)
Assemblywoman ANDREA KATZ
District 8 (Atlantic and Burlington)
Co-Sponsored by:
Assemblywoman Reynolds-Jackson
SYNOPSIS
���� Provides CBT tax credit for retrofit of existing
warehouses with solar-ready zone once solar panels are installed.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
providing a tax credit under the corporation
business tax for the retrofit of existing warehouses with solar-ready zones and
supplementing P.L.1945, c.162 (C.54:10A-1 et seq.).
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� a.� (1)� A taxpayer that
retrofits an existing warehouse with a solar-ready zone, shall be allowed a
credit against the tax imposed pursuant to section 5 of P.L.1945, c.162
(C.54:10A-5), to be calculated as provided in paragraph (2) of this subsection,
to compensate the taxpayer for the costs incurred as a result of retrofitting
an existing warehouse with a solar ready-zone, provided that the taxpayer
installs solar panels on the warehouse.
���� (2)�� The amount of the credit
authorized shall not exceed the lesser of:� (a) fifty percent of the cost
incurred to retrofit an existing warehouse with a solar-ready zone, or (b)
$250,000.�
A taxpayer may claim the credit authorized
pursuant to this section for the cost of retrofitting an existing warehouse
with a solar-ready zone for up to eight existing warehouses owned or operated
by the same taxpayer in a single privilege period.
���� b.��� A
taxpayer that retrofits an existing warehouse with a solar-ready zone shall
demonstrate to the director that solar panels have been installed on the
warehouse prior to receiving the tax credit provided in this section.
���� c.���� The
director shall prescribe the order of priority of the application of the tax
credit allowed pursuant to this section, and any other credits allowed against
the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a
privilege period.� The amount of the credit applied pursuant to this section
against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5)
shall not reduce a taxpayer's tax liability to an amount less than the
statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162
(C.54:10A-5).� The amount of the tax credit otherwise allowable under this
section which cannot be applied for the privilege period due to the limitations
of this subsection or under other provisions of P.L.1945, c.162 (C.54:10A-1 et
seq.) may be carried forward, if necessary, to the seven privilege periods
following the privilege period for which the tax credit was allowed.
���� d.��� The
value of the tax credits provided pursuant to this section by the director
shall not exceed a cumulative total of $25 million.
���� e.���� The
director shall certify a taxpayer that retrofits an existing warehouse with a
solar-ready zone as eligible to receive the tax credit provided in this section
if:
���� (1)�� the
warehouse meets the size criteria required pursuant to subsection g. of this
section;
���� (2)�� the
warehouse has been retrofitted with a solar-ready zone as defined in subsection
g. of this subsection; and
���� (3)�� solar
panels have been installed on the warehouse�s solar-ready zone.
���� f.���� The
director, in consultation with the Department of Community Affairs, shall
adopt, pursuant to the "Administrative Procedure Act," P.L.1968,
c.410 (C.52:14B-1 et seq.), rules and regulations as are necessary to implement
the provisions of this section.� The director may require the submission of any
information the director deems necessary to award a tax credit pursuant to this
section.
���� g.��� As
used in this section:
���� �Retrofit" means a change
in design, construction, or equipment already in operation in order to
incorporate later improvements.
����
�
Solar
panel� means an elevated panel or plate, or a canopy or array thereof, that
captures and converts solar radiation to produce power, and includes flat
plate, focusing solar collectors, or photovoltaic solar cells and includes the
base or foundation of the panel, plate, canopy, or array.
���� �Solar-ready
zone� means a section of a roof or building overhang designated and reserved
for the future installation of a solar photovoltaic or solar thermal system,
which is at least 40 percent of the roof area calculated as the horizontally
projected areas minus the area covered by skylights, occupied roof decks,
vegetative roof areas, and mandatory access or set back areas required by the
State Uniform Construction Code, or as otherwise provided in the 2018
International Energy Conservation Code, Appendix CA, and any successor model
code, concerning solar-ready zones.
���� �Warehouse�
means any building, room, structure, or facility of at least 100,000 square
feet used primarily for the storage of goods intended for sale.
���� 2.��� This act shall take
effect immediately.
STATEMENT
���� The bill would incentivize the
retrofitting of existing warehouses with solar-ready zones by providing a tax
credit against the corporation business tax to compensate a taxpayer who
retrofits an existing warehouse with a solar-ready zone.� The tax credit would
be available once the taxpayer installs solar panels on the warehouse.� The
bill defines �warehouse� as a
building, room,
structure, or facility of at least 100,000 square feet used primarily for the
storage of goods intended for sale
. The bill defines �solar-ready zone�
as
a section of a roof or building overhang
designated and reserved for the future installation of a solar photovoltaic or
solar thermal system, which is at least 40 percent of the roof area calculated
as the horizontally projected areas minus the area covered by skylights,
occupied roof decks, vegetative roof areas, and mandatory access or set back
areas required by the State Uniform Construction Code, or as otherwise provided
in the 2018 International Energy Conservation Code, Appendix CA, and any
successor model code, concerning solar-ready zones.
����
The
amount of the tax credit provided by the bill may not exceed the lesser of: (1)
fifty percent of the cost incurred to retrofit an existing warehouse with a
solar-ready zone, or (2) $250,000.�
A taxpayer may
claim the credit authorized under the bill for the cost of retrofitting an
existing warehouse with a solar-ready zone for up to eight existing warehouses
owned or operated by the same taxpayer in a single privilege period.
���� The
bill would require a taxpayer that retrofits an existing warehouse with a
solar-ready zone to demonstrate to the
Director of the Division of
Taxation in the Department of the Treasury (
director)
that solar panels have been installed on the warehouse prior to receiving the
tax credit provided in the bill.� Requiring the installation of solar panels on
the solar-ready zones of warehouses, prior to receiving the tax credit, would
ensure an environmental benefit attributable to the credit.
���� The bill would also limit the
cumulative total of tax credits awarded pursuant to the bill to $25 million.� The
director would be required to
certify taxpayers as
eligible to receive the tax credit provided in the bill.� A taxpayer that
retrofits an existing warehouse with a solar-ready zone would be eligible to
receive the tax credit provided in this section if:
���� (1)�
the warehouse meets the size criteria required pursuant to the bill;
���� (2)�
the warehouse has been retrofitted with a solar-ready zone; and
���� (3)�
solar panels have been installed on the warehouse�s solar-ready zone.
���� The director may require the
submission of any information the director deems necessary to award a tax
credit pursuant to the bill.� Finally, the bill would require the director, in
consultation with the Department of Community Affairs, to adopt rules and
regulations as are necessary to implement the bill�s provisions.