The New Jersey Senate has passed legislation sponsored by Senator Christopher “Kip” Bateman to provide a gross income tax credit to cover 50 percent of the cost of purchasing and installing a “smart thermostat.”
Sen. Kip Bateman’s bill would provide a gross income tax credit to cover 50% of the cost of purchasing and installing a smart thermostat. (SenateNJ)
“Smart thermostats are widely available, affordable and easy to use. These energy saving devices can help homeowners cut heating and cooling costs by up to 20 percent,” Senator Bateman (R-16) said. “Providing tax credits for smart thermostats will give homeowners even more of a reason to make an investment that can ease the burden energy usage has on their wallet and the environment.”
Senator Bateman’s bill, S-3065, would provide a gross income tax credit of 50 percent of the cost of the purchase and installation of a smart thermostat in a residential property, not to exceed $250.
Smart thermostats are defined under the bill as a thermostat with a wireless connection that an owner can program to automatically adjust the temperature or turn on or off the heating and cooling system at scheduled times. Smart thermostats can be used alone or as part of a larger home automation platform. Many can be remotely controlled by the owner using a mobile phone from any location.
In order to receive the tax credit created by this bill, an applicant would be required to receive certification from the Board of Public Utilities. The BPU would have 90 days to review it and issue the certification. The tax credit would be funded through the Clean Energy Fund.
S-3065 would take effect immediately and is applicable to taxable years beginning on or after January 1 next following the date of enactment.
“Increasing energy efficiency is one of the easiest, most cost effective ways to lower emissions and reduce our impact on global climate change,” Senator Bateman added. “Now, thanks to smart thermostats, we can save money and conserve energy even when no one is at home to turn off the air conditioner. Providing a tax credit for purchase and installation is a great way to encourage as many people as possible to become more energy efficient.”
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