Cogeneration Facility Sales Tax Exemption (New Jersey)

From Open Energy Information


Last modified on February 12, 2015.

Financial Incentive Program

Place New Jersey

Name Cogeneration Facility Sales Tax Exemption
Incentive Type Sales Tax Incentive
Applicable Sector Commercial, Industrial
Eligible Technologies CHP/Cogeneration
Active Incentive No
Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 100%

Start Date 1998-01-01

Maximum Incentive None

Program Administrator New Jersey Division of Tax Services

References DSIRE[1]


Under the Energy Tax Reform Act, a sales tax is imposed on natural gas and electricity. However, there is an exemption for the purchase and use of natural gas and utility service that is used for cogeneration if the cogeneration facility was in operation or had filed a operating or construction permit on or before March 10, 1997. To apply for the exemption, the cogeneration facility will issue an Exempt Use Certificate (ST-4) to natural gas vendors.

Exempt Use Certificate (ST-4):

If the cogeneration facility came into operation after March 10, 1997, the purchase of natural gas and utility service may be tax exempt if it is used to generate electricity that is (1) used for resale or (2) sold to an end user other than the owner of the cogeneration facility. A Direct Pay Certificate will be issued to the facility and the facility will self-assess on a quarterly basis that the electricity generated fits into one of these two categories.

Authorities (Please contact the if there are any file problems.)

Authority 1: NJSA §54:32B-8.46
Date Effective 1998-01-01
Date Enacted 1997-07-14

Incentive Contact

Contact Name Denise Lambert
Department New Jersey Division of Tax Services
Address PO Box 269
Place Trenton, New Jersey
Zip/Postal Code 08695
Phone (609) 292-6400

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE)"