This bill proposes a gross income tax deduction for resident taxpayers in New Jersey who purchase and install a whole house backup electrical generator at their primary residence. The deduction applies to the costs incurred during the taxable year for both the purchase and installation of the generator, which must be a natural gas or liquid propane fuel-powered unit that is permanently connected to the electrical system of a one or two-family home. To qualify for the deduction, the generator must also meet specific installation, inspection, and permitting requirements as dictated by applicable state and local laws.

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 use of generators that can support essential medical devices and prevent property damage during outages, such as flooding from burst pipes or loss of well water supply. The bill is designed to reduce reliance on vulnerable electricity supply grids and improve overall safety and comfort for residents during emergencies.