Tax Benefits

Determination of Environmental Benefit

The regulations at N.J.A.C. 7:14D establish the requirements and procedures by which the Department will determine whether treatment equipment or conveyance equipment purchased for an industrial facility for purposes of reusing further treated effluent in an industrial process will, in its operation, and considered in conjunction with the reuse of the further treated effluent that results from that operation, result in an environmental benefit to the water resources of the State. Consistent with the provisions of N.J.A.C. 7:14D-2.1 , facilities seeking this determination are required to submit an application.

A Determination of Environmental Benefit (i.e. DEB) issued by the Department can be submitted to the New Jersey State Department of Treasury, Division of Taxation for a corporate business tax credit and/or sales tax refund for the eligible treatment or conveyance equipment purchased for the exclusive purpose of reusing further treated effluent in industrial processes.

If you have questions regarding Determinations of Environmental Benefit, please contact the Bureau of Environmental, Engineering and Permitting (BEEP) by e-mailing dwq_twa@njdepwptest.net

Certification for Water Pollution Abatement Facility

The NJ Legislative Statute establishes a tax exemption for any equipment, facility, or device which is primarily used for the purpose of abating or preventing pollution of the waters of this State and that has been certified to be a water pollution abatement facility by the State. If the State determines the application is complete and the facility is a water pollution abatement facility under the NJ Legislative Statute, a certification will be issued which contains information identifying the approved facilities and the cost thereof. The State may revoke this certificate, after giving notice to the holder and providing an opportunity for a hearing, when:

  • The certificate was obtained by fraud or misrepresentation;
  • The claimant for tax exemption has failed substantially to proceed with the construction, reconstruction, installation or acquisition of pollution control facilities;
  • The structure or equipment or both to which the certificate relates has ceased to be used for the primary purpose of pollution control and is being used for a different primary purpose;
  • The claimant for tax exemption hereunder has so departed from the equipment, design and construction previously certified by the State Commissioner of Health that, in the opinion of said commissioner, the primary purpose of such installation is no longer the prevention of pollution as above defined or the installation is not suitable and reasonably adequate for the purpose for which certified; or
  • Performance of the equipment as installed is not, in the opinion of said commissioner, suitable and reasonably adequate for the primary purpose for which certified; and in lieu of revocation, the commissioner may modify such certificate in accordance with the facts presented.

An application for certification of a water pollution abatement facility (Form M5601) is to be submitted to the Bureau of Environmental, Engineering, and Permitting via the mailing address on the form or e-mailed to dwq_twa@njdepwptest.net.

If you have questions regarding the application for certification of a water pollution abatement facility, please contact the Bureau of Environmental, Engineering, and Permitting by emailing dwq_twa@njdepwptest.net.