"Cost Savings on Energy Saving Purchases Act"; exempts sales of energy-saving products and services from sales and use tax.

A4019

ASSEMBLY, No. 4019

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 12, 2026

Sponsored by:

Assemblyman� ALEX SAUICKIE

District 12 (Burlington, Middlesex, Monmouth and Ocean)

Co-Sponsored by:

Assemblywoman Fantasia

SYNOPSIS

���� �Cost Savings on Energy Saving Purchases Act�;
exempts sales of energy-saving products and services from sales and use tax.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
exempting energy-saving products and services from the
sales and use tax, designated as the �Cost Savings on Energy Saving Purchases
Act,� and supplementing P.L.1966, c.30 (C.54:32B-1 et seq.).

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� a.� Receipts from the
retail sale of energy-saving products and services, including, but not limited
to, ductwork sealing and repair, insulation, LED light bulbs, window caulk,
furnace filters, weather stripping, light colored roof shingles, heating and cooling
system tune up, tankless water heater, window and door insulation kit, and
reflective roofing tar or paint, are exempt from the tax imposed under the
�Sales and Use Tax Act,� P.L.1966, c.30 (C.54:32B-1 et seq.).

���� b.��� As used in this section:

���� �Ductwork sealing and repair�
means products or services designed to improve the efficiency of heating,
ventilation, and air conditioning systems by sealing leaks, insulating, or
repairing existing ductwork to reduce energy loss during air distribution.

���� �Energy-saving products and
services� means any product or service that is primarily designed and marketed
to reduce energy consumption in residential and commercial buildings.

���� �Furnace filter� means a
device designed to remove particulates from air circulated by heating,
ventilation, and air conditioning systems.

���� �Heating and cooling system
tune up� means a service performed on heating, ventilation, and air
conditioning systems to optimize their efficiency, including cleaning,
adjusting, and minor repairs to ensure the system operates at peak performance
and consumes less energy.

���� �Insulation� means any product
or materials designed to reduce heat transfer between the interior and exterior
of a building, including, but not limited to, fiberglass, cellulose, foam, and
reflective materials.

���� �LED light bulb� means a light
bulb that uses light-emitting diodes as its source of illumination.

���� �Light colored roof shingle�
means a roofing shingle with a high solar reflectance designed to reduce heat
absorption.

���� �Reflective roofing tar or
paint� means a coating product designed to be applied to roofs that has high
solar reflectance and thermal emittance properties, intended to reduce heat
absorption.

���� �Tankless water heater� means
a device that heats water on demand as it flows through the unit, eliminating
the need for a storage tank and reducing standby energy losses associated with
traditional water heaters.

���� �Weather stripping� means
material designed to seal gaps around doors and windows to prevent air leakage.

���� �Window and door insulation
kit� means a product designed to improve the thermal efficiency of windows and
doors, typically including materials such as plastic sheeting, weather
stripping, and adhesive tape, intended to reduce heat transfer and air leakage.

���� �Window caulk� means a sealant
material used to fill gaps around window frames to prevent air leakage.

���� 2.��� This act shall take
effect immediately and apply to sales made on or after the first day of the
second month next following the date of enactment.

STATEMENT

���� This bill, designated as the
"Cost Savings on Energy Saving Purchases Act," provides an exemption
from the sales and use tax for the retail sale of energy-saving products and
services, including, but not limited to, insulation, LED light bulbs, window
caulk, furnace filters, weather stripping, light colored roof shingles,
reflective roofing tar or paint, window and door insulation kits, ductwork
sealing and repair products, heating and cooling system tune-up services, and
tankless water heaters.

���� Under the bill, the term
�energy-saving products and services� is defined as any product or service that
is primarily designed and marketed to reduce energy consumption in residential
and commercial buildings. �The bill also provides specific definitions for
items that are considered energy-saving products or services for purposes of
the bill.