New Jersey § 54:4-23

§ 54:4-23.

a. (1) No land used for biomass, solar, or wind energy generation shall be considered

land in agricultural or horticultural use or actively devoted to agricultural or horticultural

use for the purposes of the “Farmland Assessment Act of 1964,” P.L.1964, c. 48 ( C.54:4-23.1 et seq. ), except as provided in this section or, in the case of unpreserved farmland used for a dual-use solar energy project,

as provided in section 1 of P.L.2021, c. 170 ( C.48:3-87.13 ) . (2) No generated energy from any source shall be considered an agricultural or horticultural

product. b. Land used for biomass, solar, or wind energy generation may be eligible for valuation,

assessment and taxation pursuant to P.L.1964, c. 48 ( C.54:4-23.1 et seq. ), provided that: (1) the biomass, solar, or wind energy generation facilities, structures, and equipment

were constructed, installed, and operated on property that is part of an operating

farm continuing to be in operation as a farm in the tax year for which the valuation,

assessment and taxation pursuant to P.L.1964, c. 48 ( C.54:4-23.1 et seq. ) is applied for; (2) in the tax year preceding the construction, installation, and operation of the

biomass, solar, or wind energy generation facilities, structures, and equipment on

an operating farm, the acreage used for the biomass, solar, or wind energy generation

facilities, structures, and equipment was valued, assessed and taxed as land in agricultural

or horticultural use; (3) the power or heat generated by the biomass, solar, or wind energy generation facilities,

structures, and equipment is used to provide, either directly or indirectly but not

necessarily exclusively, power or heat to the farm or agricultural or horticultural

operations supporting the viability of the farm; (4) the owner of the property has filed a conservation plan with the soil conservation

district, with provisions for compliance with paragraph (5) of this subsection where

applicable, to account for the aesthetic, impervious coverage, and environmental impacts

of the construction, installation, and operation of the biomass, solar, or wind energy

generation facilities, structures, and equipment, including, but not necessarily limited

to, water recapture and filtration, and the conservation plan has been approved by

the district; (5) where solar energy generation facilities, structures, and equipment are installed,

the property under the solar panels is used to the greatest extent practicable for

the farming of shade crops or other plants capable of being grown under such conditions,

or for pasture for grazing; (6) the amount of acreage devoted to the biomass, solar, or wind energy generation

facilities, structures, and equipment does not exceed a ratio of one to five acres,

or portion thereof, of land devoted to energy generation facilities, structures, and

equipment and land devoted to agricultural or horticultural operations; (7) biomass, solar, or wind energy generation facilities, structures, and equipment

are constructed or installed on no more than 10 acres of the farmland for which the

owner of the property is applying for valuation, assessment and taxation pursuant

to P.L.1964, c. 48 ( C.54:4-23.1 et seq. ), and if power is being generated, no more than two megawatts of power are generated

on the 10 acres or less; and (8) for biomass energy generation, the owner of the property has obtained the approval

of the Department of Agriculture pursuant to section 5 of P.L.2009, c. 213 ( C.4:1C-32.5 ). c. No income from any power or heat sold from the biomass, solar, or wind energy generation

may be considered income for eligibility for valuation, assessment and taxation of

land pursuant to the “Farmland Assessment Act of 1964,” P.L.1964, c. 48 ( C.54:4-23.1 et seq. ), and, notwithstanding the provisions of that act, or any rule or regulation adopted

pursuant thereto, to the contrary, there shall be no income requirement for property

valued, assessed and taxed pursuant to subsection b. of this section. d. Notwithstanding any provision of this section, section 3 of P.L.1964, c. 48 ( C.54:4-23.3 ), or section 4 of P.L.1964, c. 48 ( C.54:4-23.4 ) to the contrary, the construction, installation, or operation of any biomass, solar,

or wind energy generation facility, structure, or equipment in the pinelands area,

as defined and regulated by the “Pinelands Protection Act,” P.L.1979, c. 111 ( C.13:18A-1 et seq. ), shall comply with the standards of P.L.1979, c. 111 and the comprehensive management

plan for the pinelands area adopted pursuant to P.L.1979, c. 111. e. The Division of Taxation, in consultation with the Department of Agriculture, shall

adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c. 410 ( C.52:14B-1 et seq. ), such rules and regulations as may be necessary for the implementation and administration

of this section. f. For the purposes of this section: “ Biomass ” means an agricultural crop, crop residue, or agricultural byproduct that is cultivated,

harvested, or produced on the farm, or directly obtained from a farm where it was

cultivated, harvested, or produced, and which can be used to generate energy in a

sustainable manner, except with respect to preserved farmland, “ biomass ” means the same as that term is defined in section 1 of P.L.2009, c. 213 ( C.4:1C-32.4 ). “ Dual-use solar energy project ” means the same as the term is defined in section 1 of P.L.2021, c. 170 ( C.48:3-87.13 ). “ Land used for biomass, solar, or wind energy generation ” means the land upon which the biomass, solar, or wind energy generation facilities,

structures, and equipment are constructed, installed, and operated. In the case of biomass energy generation, “land used for biomass, solar, or wind

energy generation” shall not mean the land upon which agricultural or horticultural

products used as fuel in the biomass energy generation facility, structure, or equipment

are grown. “Land used for biomass, solar, or wind energy generation” shall not include land used

for a dual-use solar energy project. “ Preserved farmland ” means land on which a development easement was conveyed to, or retained by, the

State Agriculture Development Committee, a county agriculture development board, or

a qualifying tax exempt nonprofit organization pursuant to the provisions of section

24 of P.L.1983, c. 32 ( C.4:1C-31 ), section 5 of P.L.1988, c. 4 ( C.4:1C-31.1 ), section 1 of P.L.1989, c. 28 ( C.4:1C-38 ), section 1 of P.L.1999, c. 180 ( C.4:1C-43.1 ), sections 37 through 40 of P.L.1999, c. 152 ( C.13:8C-37 through C.13:8C-40 ), or any other State law enacted for farmland preservation purposes. “ Unpreserved farmland ” means the same as the term is defined in section 1 of P.L.2021, c. 170 ( C.48:3-87.13 ).