Gov. Phil Murphy signed into law on Thursday a bill, supported by NJBIA, that extends the sales tax exemption for energy utility services to certain manufacturing facilities in the state.
Bill A-5121 (Coughlin, D-19) exempts a sale or use tax on energy utility services to qualifying recycled materials manufacturing facilities for a period of seven years.
“This is very good news for some of our manufacturing facilities as they can now avoid certain energy-related taxes,” said NJBIA Vice President of Government Affairs Ray Cantor.
“Every and any reduced burden on our manufacturers, particularly in the name of recycled materials, is a positive and we thank the governor and sponsors of this bill for their support.”
The law requires the Division of Taxation to annually review the economic feasibility of continuing to provide qualifying recycled materials manufacturing facilities with the exemption from the sales and use tax and to submit their recommendations to the Legislature as to whether such exemptions should be continued.