Bill Text: NJ S3870 | 2024-2025 | Regular Session | Introduced
Bill Title: Exempts sales of energy-saving products and services from sales and use tax.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-11-18 - Introduced in the Senate, Referred to Senate Environment and Energy Committee [S3870 Detail]
Download: New_Jersey-2024-S3870-Introduced.html
Sponsored by:
Senator OWEN HENRY
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
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, 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 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 products or services that are 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.
