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A4785
ASSEMBLY, No. 4785
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MARCH 19, 2026
Sponsored by:
Assemblyman� GREGORY P. MCGUCKIN
District 10 (Monmouth and Ocean)
SYNOPSIS
���� Requires installation of emergency power supply
systems to certain common areas of new planned real estate developments;
provides related tax incentives.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
concerning the provision of emergency power
supply systems to certain common areas of new planned real estate developments
and supplementing various parts of the statutory law.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� a.� For the purposes of
this section:
���� "Emergency power supply
system" means a power system providing an alternate source of electrical
power in the event that the primary power source fails, consistent with
performance requirements for emergency and standby power systems specified in
the National Fire Protection Association Standard 110 (NFPA-110), or successor
code or standard adopted by reference in the electrical subcode of the State
Uniform Construction Code.� Power systems covered include power sources,
transfer equipment, controls, supervisory equipment, and all related electrical
and mechanical auxiliary and accessory equipment needed to supply electrical
power to the load terminals of the transfer equipment.
���� "Planned real estate
development" means "planned real estate development" as defined
in section 3 of P.L.1977, c.419 (C.45:22A-23).
���� b.� The Commissioner of
Community Affairs shall revise the State Uniform Construction Code to require
the installation of an emergency power supply system for each common recreation
or community facility, commonly referred to as a clubhouse or community room, of
a planned real estate development.� The code revision shall set forth criteria
to ensure that an emergency power supply system installed in accordance with
this section provides a source of electrical power of required capacity,
reliability, and quality to a common recreation or community facility so that
the facility can serve as a shelter for residents of the development in case of
extended power outages.� The code revision shall cover installation,
maintenance, operation, and testing requirements as they pertain to the
performance of an emergency power supply system.� The code revision shall be
consistent with performance requirements for emergency and standby power
systems specified in the National Fire Protection Association Standard 110 (NFPA-110),
or successor code or standard adopted by reference in the electrical subcode of
the State Uniform Construction Code, however, the commissioner, after
consultation with the code advisory board, may include provisions in the code
revision that clarify, modify, or deviate from NFPA-110 in order to further the
purposes of this act.
���� c.���� A common recreation or
community facility that is equipped with an emergency power supply system shall
provide public charging stations for residents of the development and shall be
equipped with sufficient outlets for residents to charge portable electronic
devices and electronic equipment necessary for the health and safety of the
residents.
���� 2.��� a.� The agency shall not
enter an order registering a planned real estate development proposed to
provide a common recreation or community facility, commonly referred to as a
clubhouse or community room, unless the approval is conditioned upon
installation of an emergency power supply system in accordance with section 1
of P.L.��� , c.��� (C.��� ����) (pending before the Legislature as this bill).
���� b.��� Notwithstanding any
provision of law to the contrary, if an application for registration of a
development proposed to provide a common recreation or community facility was
initially submitted after the effective date of P.L.��� , c.��� (C.��� ����)
(pending before the Legislature as this bill) and deemed registered pursuant to
subsection a. of section 10 of P.L.1977, c.419 (C.45:22A-30), the developer
shall install an emergency power supply system in accordance with section 1 of
P.L.��� , c.��� (C.��� ����) (pending before the Legislature as this bill).
���� 3.��� a.� Notwithstanding the
provisions of subsection (k) of section 4 of P.L.1945, c.162 (C.54:10A-4), a
taxpayer may elect to treat the cost of an emergency power supply system required
to be installed in a planned real estate development pursuant to P.L.��� ,
c. (C. ��� ) (pending before
the Legislature as this bill), not to exceed $10,000, as an expense which is
not chargeable to capital account.� A cost treated as an expense shall be
allowed as a deduction for the privilege period in which the emergency power
supply system is placed in service.
���� b.��� (1)� An election under
this section for any privilege period shall:
���� (a)�� specify the items of property
comprising an emergency power supply system, to which the election applies, and
the portion of the cost of each of those items which is to be taken into
account under subsection a. of this section, and
���� (b)�� be made on the
taxpayer's return for the tax imposed by section 5 of P.L.1945, c.162
(C.54:10A-5) for the privilege period.
���� (2)�� The election shall be
made in the manner as the director may by regulation prescribe.
���� (3)�� An election or
specification with respect to a privilege period may be revoked by the taxpayer
with respect to any property, and the revocation, once made, shall be
irrevocable.
���� c.���� The director shall
prescribe the rules and regulations necessary to carry out the provisions of
this section, including, among others, those for determining the adjusted basis
of the emergency power supply system property for the purposes of the "Corporation
Business Tax Act (1945)," P.L.1945, c.162 (C.54:10A-1 et seq.).
���� d.��� For the purposes of this
section:
���� "Emergency power supply
system" means an �emergency power supply system� as defined in section 1
of P.L.��� , c.��� (C.��� ) (pending before the Legislature as this bill).
���� 4.��� a.� Receipts from sales
of property comprising an emergency power supply system required to be
installed in a planned real estate development pursuant to P.L.��� , c.���
(C.��� ����) (pending before the Legislature as this bill) are, subject to the
conditions and limitations of this section, exempt from the tax imposed under
the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
���� b.��� Notwithstanding the
provisions of subsection a. of this section, the seller shall charge and
collect the tax imposed pursuant to the "Sales and Use Tax Act,"
P.L.1966, c.30 (C.54:32B-1 et seq.), from the purchaser on sales of property comprising
an emergency power supply system at the rate then in effect, and the tax shall
be returned as a rebate to the purchaser by the filing of a claim with the
director for a rebate of the tax paid.
���� c.���� The filing of a claim
for a rebate of the tax paid in accordance with this section shall be made by
the purchaser on forms furnished by the director, and shall be accompanied by
such information and documentation as may be determined to be necessary by the
director to verify the tax paid on property comprising an emergency power
supply system.� The claim shall be filed within 360 days of the date that the
property comprising an emergency power supply system is placed in service.
���� d.��� The director shall
review or cause to be reviewed each complete claim filed for a rebate of the
tax paid in accordance with this section, and shall determine or cause to be
determined the amount to be returned as a rebate for the tax paid in connection
with purchases of property comprising an emergency power supply system based on
the tax separately stated on the sales slip, invoice, receipt, or other
statement or memorandum given to the purchaser at the time of purchase;
provided, however, that the director shall determine the amount to be returned
as a rebate for the tax paid in connection with eligible purchases of property comprising
an emergency power supply system made by a contractor on behalf of a purchaser
based upon the separately stated cost of the property comprising an emergency
power supply system, or, if the cost for property comprising an emergency power
supply system is not separately stated on the contract, bill, or invoice given
to the purchaser by the contractor, the amount to be returned as a rebate shall
be based on 50 percent of the total amount of the sales price paid.
���� e.���� The director shall
return or cause to be returned to each purchaser that has filed a complete
claim for a rebate of the tax paid in accordance with this section the amount
determined to be returned as a rebate within six months of the date the
complete claim is filed.
���� f.���� The director shall pay
or cause to be paid to a purchaser interest on any amount determined to be
returned as a rebate that is not returned within six months of the date the
complete claim is filed, as is allowed and paid on overpayments of tax pursuant
to section 7 of P.L.1992, c.175 (C.54:49-15.1).
���� g.��� Notwithstanding any
provisions of the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.) to the contrary, the director may adopt, immediately upon
filing with the Office of Administrative Law, such regulations, including, but
not limited to, terms and conditions governing application for and payment of
refunds, as the director deems necessary to implement the provisions of this
section, which regulations shall be effective for a period not to exceed 180
days from the date of filing.� Such regulations may thereafter be amended,
adopted, or readopted by the director as the director deems necessary in
accordance with the requirements of P.L.1968, c.410 (C.52:14B-1 et seq.).
���� 5.��� a.� For the purposes of
this section:
���� "Emergency power supply
system" means "emergency power supply system" as defined in
section 1 of P.L.��� , c.��� (C.��� ) (pending before the Legislature as this
bill).
���� b.� Notwithstanding the
provisions of N.J.S.54A:5-1 and section 26 of P.L.2004, c.65 (C.54A:5-1.2), a
taxpayer may elect to treat the cost of property comprising an emergency power
supply system, not to exceed $10,000, as an expense which is not chargeable to
capital account.� A cost treated as an expense shall be allowed as a deduction
for the taxable year in which the emergency power supply system is placed in
service.
���� c.���� (1)� An election under
this section for any taxable year shall:
���� (a)�� specify the items of
property comprising an emergency power supply system to which the election
applies and the portion of the cost of each of those items which is to be taken
into account under subsection b. of this section, and
���� (b)�� be made on the
taxpayer's return for the tax imposed by the "New Jersey Gross Income Tax
Act," N.J.S.54A:1-1 et seq. for the taxable year.
���� (2)�� The election shall be
made in the manner as the director may by regulation prescribe.
���� (3)�� An election or
specification with respect to a privilege period may be revoked by the taxpayer
with respect to any property, and the revocation, once made, shall be
irrevocable.
���� (4)�� The election under this
section shall be made by the business entity of a taxpayer, and shall apply to
each owner of the business entity.
���� d.��� The director shall
prescribe the rules and regulations necessary to carry out the provisions of
this section, including, among others, those for determining the adjusted basis
of the acquired property for the purposes of the "New Jersey Gross Income
Tax Act," N.J.S.54A:1-1 et seq.
���� 6.��� This act shall take
effect the first day of the fourth month next following enactment and be
applicable to applications for construction permits and applications for
registration that are not complete on that date, however, the Commissioner of
Community Affairs shall immediately take all actions necessary to ensure that
this act takes effect on the effective date.
STATEMENT
���� This bill would require the
installation of an emergency power supply system to supply standby power to
each clubhouse or community room in a new common interest community.� Hurricane
Sandy resulted in prolonged power outages throughout the State of New
Jersey and surrounding areas.� While Hurricane Sandy is the most recent and
prominent example of extended power outages caused by extraordinary weather
conditions, it was not an isolated occurrence with regard to extended power
outages.
���� Many parts of New
Jersey have been developed as common interest communities.� Although these
planned communities may isolate residential dwellings from public and
commercial buildings, these communities often contain clubhouses or other
facilities that could be used as a shelter during times of emergency.
���� By requiring new common
interest communities to equip clubhouses and community rooms with an alternate
source of electrical power, the bill will provide residents of these
communities with a centrally-located, well-powered shelter to better wait-out
future power outages.� While this bill would not require existing common
interest communities to retrofit their clubhouses and community rooms with
emergency power supply systems, the sponsors recommend and encourage these
communities to do so.
���� In recognition of the
quasi-public purpose of this initiative, the bill provides a corporation
business tax deduction and gross income tax deduction (not to exceed $10,000 in
either case), and a sales tax exemption, for the purchase of equipment necessary
for the installation of emergency power supply systems by developers of new
common interest communities as required under the bill.