Clean energy manufacturers could seek sales tax relief for large facilities

New Jersey would let qualifying manufacturers seek certificates that waive sales and use taxes on eligible project purchases. Projects must build or substantially renovate New Jersey facilities used mainly for manufacturing or research. Projects must be expected to cost at least $500 million and house at least 200 new full-time workers for at least five years. Only eligible items bought for the approved site during its approval period qualify; motor vehicles are excluded. The change would take effect immediately if the bill becomes law.

The New Jersey Economic Development Authority would remove two application hurdles for these manufacturers and could consider projects outside the usual planning areas. These exceptions apply to clean energy product manufacturers with qualifying projects. Applicants would not need ten years of New Jersey operations or proof that the tax break influenced their choice to locate there. Outside Planning Areas 1 and 2, the authority may allow an eligible new facility or renovation only if all other criteria are met.