New JerseyNew Jersey would offer zero-interest energy loans to private 501(c)(3) nonprofits
If passed, New Jersey would set aside $5 million for zero-interest energy loans to private nonprofits with 501(c)(3) tax status.
What it does
Private nonprofits with 501(c)(3) tax status could seek zero-interest loans for energy-saving repairs. On-site power or heat systems in New Jersey could also qualify if they help meet state emissions goals.
Borrowers would cover at least 10% of system or upgrade costs and repay their loans. System purchase and installation loans would need projected lifetime savings to cover loan costs; nonprofits with yearly budgets of $1 million or less would get priority.
New Jersey would set aside $5 million to start the loan program. Repayments would return to a fund used for nonprofit loans and program costs.
Argument forApproved private 501(c)(3) nonprofits that can cover at least 10% of costs could spread out project payments without paying interest.
Argument againstThe required 10% share could keep private 501(c)(3) nonprofits with little cash from using loans for energy systems or upgrades.
More detail
New Jersey's Board of Public Utilities would offer zero-interest loans for eligible energy work. Private nonprofits with federal 501(c)(3) tax exemption could seek loans for eligible systems in New Jersey or energy-saving work. Nonprofits must apply to the board. Eligible power or heat systems must serve needs at the site and help New Jersey meet its goals for reducing greenhouse gas emissions.
Borrowers would pay part of project costs and repay loans on a schedule set by the board. The savings test applies only to loans for buying and installing eligible energy systems. Borrowers must pay at least 10% of system or efficiency upgrade costs and promise to repay the loan. For a loan to buy and install a system, the board could approve it only if projected savings over the system's useful life equal or exceed the full loan cost. The board must give priority to applicants with yearly budgets of $1 million or less.
New Jersey would set aside $5 million for the Board of Public Utilities to start the program. The fund would receive state money, loan repayments, and other contributions. The board could use fund money only for nonprofit loans and the costs of running the program. The funding provision would take effect immediately if the bill became law.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Oct 5Introduced in the Senate, Referred to Senate Environment and Energy CommitteeIntroduced
Environment & EnergyTaxes & Budget