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.
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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.