New Jersey A 2865: Establishes "Recovery Tax Credit Program"; incentivizes hiring and continued employment of certain individuals in recovery from substance use disorder.

Bill Text

A2865 

ASSEMBLY, No. 2865 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman ALEX SAUICKIE

District 12 (Burlington, Middlesex, Monmouth and Ocean)

Assemblyman GERRY SCHARFENBERGER

District 13 (Monmouth)

Co-Sponsored by:

Assemblywoman Flynn

SYNOPSIS

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

CURRENT VERSION OF TEXT 

���� Introduced Pending Technical Review by Legislative 
Counsel.

��

An Act providing a gross income tax deduction for the costs of 
purchasing and installing a whole house backup electrical generator for a 
resident taxpayer�s principal residence, supplementing Title 54A of the New 
Jersey Statutes.

���� Be It 
Enacted by the Senate and General Assembly of 
the State of New Jersey:

���� 1.� A resident taxpayer shall 
be allowed to deduct from the taxpayer�s gross income for the taxable year the 
amount paid by the taxpayer during the taxable year for the purchase and installation 
of a whole house backup electrical generator installed at the taxpayer�s 
primary residence.

���� As used in this section, 
�whole house backup electrical generator� means a natural gas or liquid gas 
propane fuel powered generator that is permanently connected to the electrical 
system of a one or two-family residential structure and only operates in the 
event of a power outage in order to provide backup electrical power to the 
residential structure, and has been installed, inspected, located and permitted 
according to any applicable State and local governing unit laws, regulations, 
code, or ordinance requirements.

���� 2.� This act shall take effect 
immediately.

STATEMENT

���� This bill allows a gross 
income tax deduction from a resident taxpayer�s gross income for the amount 
paid by the taxpayer during the taxable year for the purchase and installation 
of a whole house backup electrical generator installed at the taxpayer�s 
primary residence.� A whole house backup electrical generator is a natural gas 
or liquid gas propane fuel powered generator that is permanently connected to 
the electrical system of a one or two-family residential structure and only 
operates in the event of a power outage in order to provide backup power to the 
residential structure.� To qualify for the deduction the generator also must have 
been installed, inspected, located and permitted according to any applicable 
State and local governing unit laws, regulations, code, or ordinance 
requirements.

���� The function of the generator is 
to provide back-up electrical power for the entire residence when electric 
power from the local electric utility is interrupted.� The tax deduction 
allowed in this bill will encourage New Jersey homeowners to take steps to 
ensure their own power supplies and reduce their reliance on electricity supply 
grids that are vulnerable to blackouts caused by circumstances such as extreme 
weather, flooding, and drought.� Back-up electrical power can protect anyone in 
the home who depends on a medical device, oxygen tank, CPAP machine, 
humidifier, air conditioning, or another appliance or device that requires 
electricity. �Keeping home medical devices functioning through a whole house 
generator would reduce demand on emergency medical services and police during 
outages.� A home owner may also avoid an indoor flood caused by a burst pipe or 
inoperable sump pump during an interruption of their electricity supply during 
severe winter weather.� A home owner may also avoid the loss of well water 
supply that relies upon an electric-powered well pump.