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Johnson, Mukherji Bill to Promote Clean Energy Use with Tax Exemption for Fuel Cell Devices and Systems Clears Committee

(TRENTON) – Legislation sponsored by Assembly Democrats Gordon Johnson and Raj Mukherji to provide sales and use tax exemption for sales of fuel cell devices and systems and certain personal property powered by fuel cells was approved by the Assembly Commerce and Economic Development Committee on Monday.

“Fuel cells significantly reduce greenhouse gas and criteria air pollutant emissions,” Johnson (D-Bergen). “They can provide continuous power and resiliency when the grid goes down. In line with solar and wind energy, fuel cells are a clean, reliable and renewable energy source that many may be interested in exploring. A tax exemption would encourage them to consider fuel cells as a viable energy option.”

Under the bill, the current exemption for solar energy devices and systems would be expanded to exempt sales of fuel cell devices and systems designed to provide heating and cooling, or electrical or mechanical power, by converting the chemical energy of fuel and air into electricity through a highly-efficient non-combustive electrochemical process.

“Hydrogen energy and fuel cell technologies should be incentivized as environmentally-friendly alternatives,” Mukherji (D-Hudson). “Just as we currently provide incentives for solar energy use, we should take this common sense step to protect the environment, promote research and further innovation, and do our part to ensure cleaner air for all.”

The bill would also amend the sales and use tax to exempt from the tax sales of natural gas, the cleanest fossil fuel, when used as a fuel in a fuel cell device or system.

The bill will now go to the Assembly Speaker for further review.