Trenton – The Senate Environment and Energy Committee advanced legislation sponsored by Senator Nilsa Cruz-Perez and Senator James Beach that would authorize tax credits toward the corporation business tax, gross income tax, and certain other specified taxes for owners who retrofit or build new buildings to meet certain “green building” standards.
The bill, S-1983, would provide owners with a tax credit of up to six percent of allowable costs paid or incurred by the taxpayer in connection to a retrofitted or newly constructed green building.
“The building sector accounts for approximately 25 percent of the State’s greenhouse gas emissions,” said Senator Cruz-Perez (D- Camden/Gloucester). “The tax credits within this package would serve as financial incentives to building owners to prioritize energy efficiency.”
“This legislation will encourage building owners to decrease greenhouse gas emissions and reduce their carbon footprint,” said Senator Beach (D- Camden/Burlington). “These incentives will also promote the creation of energy efficient buildings in low-income neighborhoods which suffer the most from poor air quality.”
Under the bill’s provision, the tax credits would be available for seven years. The total of all credits, which could be allocated in the first fiscal year after enactment, would be no more than $20 million. In each of the subsequent six fiscal years, up to $50 million of credit allocations may be issued per year.
The bill was released from committee by a vote of (5-0).