This bill proposes a gross income tax deduction for resident taxpayers in New Jersey who purchase and install a whole house backup electrical generator or a home backup battery system at their primary residence. The deduction applies to the costs incurred during the taxable year for these installations. The bill defines a "whole house backup electrical generator" as a generator powered by natural gas or liquid propane that is permanently connected to the home's electrical system and operates only during power outages. Similarly, a "home backup battery system" is defined as a system of batteries with a capacity of three kilowatt-hours or greater that stores and releases electricity on demand, also permanently connected to the home's electrical system.

The intent of this legislation is to encourage homeowners to invest in backup power solutions, thereby enhancing their resilience against power outages caused by extreme weather or other disruptions. By providing a tax incentive, the bill aims to promote the installation of these systems, which can be crucial for individuals relying on medical devices or for preventing property damage during outages. The bill emphasizes that both systems must be installed, inspected, and permitted according to applicable laws and regulations to qualify for the tax deduction.