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A 5482

Provides gross income tax deduction for costs of purchasing and installing whole house backup electrical generator or home backup battery system for resident taxpayer's principal residence.

2024-2025 Regular Session Introduced by Alex Sauickie

New Jersey would let resident taxpayers deduct costs to buy and install a whole-house backup generator or home backup battery at their primary residence to boost outage resilience.

Introduced in the Assembly, Referred to Assembly Commerce, Economic Development and Agriculture Committee
#housing #incometax
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Bill Summary · A 5482

Summary of New Jersey Bill A 5482

Overview

  • Bill number: A 5482
  • Title: Provides gross income tax deduction for costs of purchasing and installing a whole house backup electrical generator or home backup battery system for a resident taxpayer's principal residence.
  • Status: Introduced in the Assembly; referred to the Assembly Commerce, Economic Development and Agriculture Committee.
  • Introduced: February 14, 2025
  • Sponsor: Alicia Hyndman (primary)
  • Subject: Housing, Income Tax

Purpose

The bill creates a deduction from a resident taxpayer’s gross income for the taxable year for amounts paid to purchase and install two types of backup power systems at the taxpayer’s primary residence: (1) a whole-house backup electrical generator and (2) a home backup battery system. The underlying goal is to promote energy resilience and reliability during power outages.

Key Provisions

  • Deduction type and amount

    • A resident taxpayer may deduct, from gross income for the taxable year, the amount paid for the purchase and installation of either a whole-house backup electrical generator or a home backup battery system at the taxpayer’s primary residence.
    • The bill defines the deduction as reducing gross income for the year of payment/installation; it is not described as a tax credit.

  • Definitions (eligibility criteria)

    • Whole-house backup electrical generator: A natural gas or liquefied petroleum gas (propane) powered generator permanently connected to the electrical system of a one- or two-family residential structure, operating only during a power outage to provide backup power. It must be installed, inspected, located, and permitted in accordance with relevant state and local laws, regulations, codes, and ordinances.
    • Home backup battery system: Batteries and related devices capable of accepting, storing, and releasing electricity on demand ( technologies may include lithium-ion, lead-acid, sodium-ion, lithium-sulfur, nickel-cadmium, flow, solid-state, etc.) with a capacity of 3 kilowatt-hours or greater. It must be permanently connected to the electrical system of a one- or two-family residential structure and provide backup power during outages. It must also be installed, inspected, located, and permitted according to applicable laws and regulations.
    • Both systems must be used to provide backup power to the entire residence during a power outage and must be installed at the primary residence.

  • Scope of installations covered

    • Applies to purchases and installations at a taxpayer’s primary residence (i.e., the taxpayer’s principal dwelling).

Eligibility and Impacts

  • Who is eligible? Resident taxpayers with a primary residence in New Jersey who purchase and install either a whole-house generator or a home backup battery system meeting the defined criteria in the same tax year.
  • What is affected? The deduction reduces gross income for the taxable year in which the costs are paid for the eligible systems.
  • Potential benefits:
    • Increased resilience during outages (medical devices, climate control, water pumping, sump pumps, etc.).
    • Potential indirect reductions in emergency service demand during outages.
  • Potential costs/considerations:
    • The bill does not specify a cap, phase-out, sunset, or dollar limit for the deduction. Fiscal impact would depend on how many taxpayers claim the deduction and the average deduction amount.
    • Administrative considerations for verifying installation compliance with local/state requirements.

Timetable and Procedure

  • Effective date: The act would take effect immediately upon enactment.
  • Legislative process:
    • Introduced in the Assembly on February 14, 2025.
    • Referred to the Assembly Commerce, Economic Development and Agriculture Committee.
  • Related/companion measures: A companion bill exists (A 1238). Several related bills across different sessions (S 4640, S 3461, S 419, S 4528, S 3342, S 5021, S 4243, S 3095, A 6267) are listed as related or prior-session considerations.

Additional notes

  • The bill defines the two eligible systems with explicit installation and compliance requirements (per laws, codes, and ordinances).
  • The measure emphasizes residential resilience and the potential to support individuals relying on powered devices during outages.
  • As introduced, there is no specified maximum deduction or sunset provision; the fiscal impact would depend on further legislative action, such as adding caps, credits, or temporary provisions.

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

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