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Johnson, Mukherji & Holley Bill Providing Tax Exemption for Fuel Cell Devices, Systems & Related Products, Services Passes Committee

Aiming to encourage the use of fuel cell devices that produce clean energy, three Assembly Democrats sponsor a bill that would exempt fuel cell devices and systems – as well as other related products and services – from sales and use taxes.

Fuel cells are a source of energy that use fuel, such as hydrogen, and an oxidant to generate electricity without combustion – and therefore no harmful byproducts. As such, the electricity generated by these cells is considered clean energy and can be used as both primary and backup power sources for a variety of buildings and equipment.

Under the bill (A-733), fuel cell devices/systems as well as the hydrogen or propane used in these devices would be exempt from sales and use taxes. The electricity generated by fuel cells and any natural gas and utility service used to co-generate power alongside fuel cells in a facility would also be exempt.

Any tangible, personal property such as electronics and vehicles that are powered solely by a fuel cell device/system could also be sold tax-free under the measure.

Upon the legislation passing the Assembly Commerce and Economic Development Committee on Monday, Assembly sponsors Gordon Johnson (D-Bergen), Raj Mukherji (D-Hudson) and Jamel Holley (D-Union) issued the following joint statement:

“Any opportunity we have to encourage the use of clean energy throughout our state is an opportunity we must take as climate change continues to accelerate. Not only do fuel cells provide clean energy, but energy that is also safe and reliable for a wide variety of applications. Exempting fuel cells and their related products and services from taxation will help incentivize their use throughout our state, benefitting every one of us in the long run.”