Government Funds Available to Replace Underground Tanks
The New Jersey Underground Storage Tank Remediation Upgrade and Closure Fund provides grants of $3,500 or more to cover the costs of removing an underground tank and installing one or more replacement tanks on a prospective basis, before the underground tank leaks. In order to qualify for a grant you must show the following:
- Your taxable income, as shown on your Form 1040, must be less than $250,000 per year.
- Your net worth, excluding equity in your principal residence and any pension or retirement plan funds, must be less than $500,000.
- You must demonstrate that your annual expenses are at least 51% of your annual taxable income.
Generally, if you meet the income, net worth and expense tests, the way to qualify for the grant is to first determine if the tank is leaking by installing a new tank and removing your underground tank. If the tank is not leaking, the grant application is filed with the New Jersey Economic Development Authority (EDA).
If the tank is leaking, a different grant application is filed with the New Jersey Department of Environmental Protection (NJDEP). In the case of a leaking tank, the grant can also cover environmental cleanup costs. Whether the grant application is filed with the EDA or the NJDEP, there is a non-refundable $250 application fee. These grants can also be used in conjunction with tank replacement programs. Grants received from the state fund are not subject to income tax.
Grant applications for non-leaking underground tanks are available on the EDA website at www.njeda.com. Grant applications for leaking underground tanks are available on the NJDEP website at www.nj.gov/dep.
The fund originally contained more than $100 million and is now down to approximately $50 million. A large number of grant applications continue to be filed. Therefore, if you are interested in taking advantage of this opportunity to upgrade your tank, we encourage you to do so as soon as possible while funds are still available.
Hart & Iliff can install a new tank for you and arrange for the removal of your underground tank. If you have questions about the UST Fund, want information or need help filing the forms, call us at 973-383-1421.
