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S 4070

Enacts the "trapped at work act"

2025 Regular Session Introduced by Robert Jackson and 1 co-sponsor

Establishes a two-part NJ program granting tax credits to power-plant owners leasing space and to fusion facilities on those sites to spur fusion development and investment.

SUBSTITUTED BY A584C
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Bill Summary · S 4070

Summary — S4070 (2025): "Trapped at Work Act" / Fusion Energy and Technology Incentive Program

Note: S4070 was reported with committee amendments (5/22/2025) and subsequently substituted by A584C (6/12/2025).

Purpose

Establishes a Fusion Energy and Technology Incentive Program in the New Jersey Economic Development Authority (EDA) to encourage use and redevelopment of power plant sites by fusion energy and fusion-technology firms, and to support the construction, improvement, testing, and operation of fusion energy/technology facilities.

Key provisions

  • Creates a two-part incentive program administered by the EDA:
    1. Tax credits for eligible property owners (owners of power plants) that lease space to fusion companies:
      • Amount: 15% of rent received (documented for prior 12 months) plus 35% of qualifying capital investments made by the owner prior to application.
      • Annual issuance cap: $5,000,000 in tax credits.
    2. Tax credits for fusion energy or fusion technology companies that operate or intend to operate facilities on a power plant site:
      • Amount: 35% of qualifying capital investments related to preparation, construction, or improvement of the facility.
      • Tax credits may not be issued until a facility is actively operated (if applied for earlier, issuance is delayed until operation begins).
      • Annual issuance cap: $10,000,000 in tax credits.
  • Combined potential annual awards across both components: capped at $15 million (per Office of Legislative Services summary of bill caps).
  • EDA may approve applications on a rolling basis and must verify capital investments before issuing certificates of compliance.
  • Defines key terms (fusion energy, fusion technology, fusion company, capital investment — excluding soft costs such as financing/design/furniture).
  • Authorizes (but does not require) the EDA to use monies from the Global Warming Solutions Fund (funded by RGGI auction proceeds) to provide grants or other assistance to commercial, institutional, or industrial entities to support fusion facilities.
  • Tax credits awarded may be carried forward (fiscal note notes carryforward up to five privilege periods).

Eligibility / Definitions (high level)

  • Eligible property owner: any individual or business that owns a (including decommissioned) power plant or a site capable of hosting a fusion facility.
  • Fusion company: entity with NJ headquarters or base of operations, with protected/proprietary IP (owned, filed, or licensed), employing highly trained/scientific staff in NJ using sophisticated equipment/processes to develop or manufacture fusion-related products/services.

Fiscal and administrative impact

  • Office of Legislative Services (OLS) estimate: indeterminate annual State revenue loss and indeterminate State cost increase.
    • Direct revenue loss from tax credits is indeterminate (annual award caps but no program duration limit; use/claim timing may span years).
    • Possible indirect revenue gains if incentives spur new in-state investment, payroll, and taxable activity.
    • EDA may incur administrative/staffing costs to establish and run the program.
  • Use of Global Warming Solutions Fund is permissive, not mandatory.

Who is affected

  • Owners of existing and decommissioned power plants and sites capable of hosting fusion operations.
  • Fusion energy and fusion technology companies (particularly those headquartered or operating in NJ).
  • New Jersey Economic Development Authority (program administration).
  • State finances (tax revenue, potential use of GWSF funds) and taxpayers broadly via potential foregone revenue and economic activity.

Procedural status / timeline

  • Introduced in the Senate: 01/30/2025 (referred to Senate Economic Growth Committee).
  • Reported (with committee amendments) by Senate Economic Growth Committee: 05/22/2025; referred to Senate Budget & Appropriations.
  • Multiple committee actions and printings (4070A, 4070B).
  • Substituted by A584C on 06/12/2025 (bill no longer proceeds in original S4070 form).

Notes

  • Committee amendments were described as technical corrections.
  • Because S4070 was substituted by A584C, substantive consideration continues under the Assembly substitute; consult A584C/A584/A6132 for the final enacted language or next-step legislative action.

Compiled from official sources — confirm details with the bill’s official record.

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