TRENTON, N.J. — A New Jersey Senate committee on Thursday advanced legislation aimed at accelerating the development of fusion energy across the state through a new incentive-based tax credit program.
The Senate Economic Growth Committee unanimously cleared the bipartisan bill, sponsored by Senator Joe Pennacchio (R-26) and Senator Andrew Zwicker (D-16), which would establish the Fusion Energy and Technology Incentive Program. The bill, S-4070, is designed to attract fusion energy companies and research operations by offering significant tax credits and grants.
“New Jersey has a unique opportunity to position itself as a global leader by attracting the innovators and companies that are bringing this revolutionary energy source to life,” Pennacchio said in a statement. “By offering strategic tax credits and grants, we can jump-start fusion development here in the Garden State.”
Under the proposal, property owners leasing to eligible fusion power plants would be eligible for annual tax credits of up to $5 million. Companies operating fusion energy or technology facilities at existing power plant sites could receive up to $10 million in credits.
Bill includes grants through climate fund
The bill also outlines additional grant opportunities through the Global Warming Solutions Fund. These would support commercial, institutional, and industrial-scale fusion energy projects, helping drive broader adoption of the emerging technology.
Senator Pennacchio has been an outspoken advocate for expanding New Jersey’s role in fusion energy. He previously introduced bills S-364 and S-366 to support fusion research and infrastructure, both of which have gained momentum in the legislature over the past year.
Supporters of S-4070 argue that the tax incentives could make New Jersey a central hub for fusion innovation in the U.S., drawing private sector investment and scientific talent from around the globe.
