New Jersey Cool Program Offers Financial Support for Eco-Friendly Retrofits in Commercial Buildings
By Barry Halpern, Partner, Tax & Business Services
The New Jersey Economic Development Authority (NJEDA) recently approved the NJ Cool Program, a pilot initiative aimed at reducing greenhouse gas emissions in existing commercial buildings. This program will provide grants to retrofit projects that result in a significant reduction of operating emissions. The pilot will initially focus on projects in the municipalities of Newark, Edison, and Atlantic City.
The NJ Cool Program aims to support retrofit construction projects in existing commercial buildings by providing grants that cover 50% of eligible project costs. The maximum award per project is $1 million, with a minimum award amount of $50,000.
To be eligible for the NJ Cool Program, applicants must own or lease the building space that will be improved using the grant funding. If the space is leased, the applicant must provide a certification from the landlord (building owner) stating that they have reviewed and approved the proposed project details.
To be eligible for the grants, projects must meet certain criteria. Specifically, they must involve switching 75% or more of building space heating loads from fossil fuel-based combustion systems to non-combustion heating systems with low to zero direct operating emissions. Additionally, projects should replace 75% or more of existing high global warming potential (GWP) refrigerants used for cooling with lower GWP alternatives.
As the pilot program progresses, more municipalities in New Jersey will be expected to join the initiative.
For additional information regarding New Jersey incentive opportunities and their impact on your business or other state business credits and incentives opportunities, contact Barry Halpern at [email protected], or your Marcum State and Local Credits and Incentives professional.