This bill proposes a gross income tax deduction for resident taxpayers in New Jersey who incur costs for purchasing and installing a whole house backup electrical generator or a home backup battery system at their primary residence. The deduction applies to the amount paid during the taxable year for these installations, which are intended to provide backup electrical power during outages. 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 legislation aims to encourage homeowners to invest in backup power solutions, thereby enhancing their resilience against power outages caused by extreme weather or other disruptions. By ensuring that essential medical devices and appliances remain operational during outages, the bill seeks to reduce the burden on emergency services and prevent potential hazards such as flooding from inoperable sump pumps. The act is set to take effect immediately upon passage.