NJ Generator Bill Now Comes With Tax Break

In the aftermath of super-storm Sandy, Assemblywoman Betty Lou DeCroce introduced a bill requiring gas stations, nursing homes and other critical facilities to have generator backup power during declared emergencies. To help implement the plan, DeCroce is now including in her legislation a tax incentive to make the upgrades affordable to businesses.

To offset the cost of the generator upgrades the bill provides for a corporation business tax deduction and gross income tax deduction (not to exceed $10,000 in either case), and a sales tax exemption, for the purchase of applicable equipment by the business and facilities covered under the Power Protection Act.

The Act would address the power outage problems suffered by many residents during Hurricane Sandy by requiring vital and unique facilities to install either natural gas or propane powered generators. Those facilities would extend beyond gas stations and nursing homes to include private assisted living facilities, Class C (dementia patients) boarding homes, pharmacies and all firehouses and emergency medical facilities.

“I am not an advocate of government mandates, but after witnessing what occurred in the aftermath of Hurricane Sandy it is clear that there are holes in our economic and safety network that need to be mended,” explains DeCroce. “We need to ensure that power is available for key businesses and institutions during emergencies……… I would not add another government mandate on businesses without an offsetting tax incentive that will mitigate the cost of the improvement.”