diff --git a/ant.freeform/src/org/netbeans/modules/ant/freeform/FreeformProject.java b/ant.freeform/src/org/netbeans/modules/ant/freeform/FreeformProject.java
--- a/ant.freeform/src/org/netbeans/modules/ant/freeform/FreeformProject.java
+++ b/ant.freeform/src/org/netbeans/modules/ant/freeform/FreeformProject.java
@@ -129,7 +129,7 @@ public final class FreeformProject imple
 	    new FreeformSharabilityQuery(helper()), //SharabilityQueryImplementation
             Accessor.DEFAULT.createProjectAccessor(this), //Access to AntProjectHelper and PropertyEvaluator
             FEQImpl, // FileEncodingQueryImplementation
-            new FreeformTemplateAttributesProvider(helper(), eval)
+            new FreeformTemplateAttributesProvider(helper(), eval, FEQImpl)
         );
         return LookupProviderSupport.createCompositeLookup(baseLookup, "Projects/org-netbeans-modules-ant-freeform/Lookup"); //NOI18N
     }
diff --git a/ant.freeform/src/org/netbeans/modules/ant/freeform/FreeformTemplateAttributesProvider.java b/ant.freeform/src/org/netbeans/modules/ant/freeform/FreeformTemplateAttributesProvider.java
--- a/ant.freeform/src/org/netbeans/modules/ant/freeform/FreeformTemplateAttributesProvider.java
+++ b/ant.freeform/src/org/netbeans/modules/ant/freeform/FreeformTemplateAttributesProvider.java
@@ -41,7 +41,9 @@
 
 package org.netbeans.modules.ant.freeform;
 
+import java.nio.charset.Charset;
 import java.util.Collections;
+import java.util.HashMap;
 import java.util.Map;
 import org.netbeans.modules.ant.freeform.spi.support.Util;
 import org.netbeans.spi.project.support.ant.AntProjectHelper;
@@ -65,19 +67,29 @@ public class FreeformTemplateAttributesP
     
     private final AntProjectHelper helper;
     private final PropertyEvaluator evaluator;
+    private final FreeformFileEncodingQueryImpl encodingQuery;
     
-    public FreeformTemplateAttributesProvider(AntProjectHelper helper, PropertyEvaluator eval) {
+    public FreeformTemplateAttributesProvider(AntProjectHelper helper, PropertyEvaluator eval, FreeformFileEncodingQueryImpl encodingQuery) {
         this.helper = helper;
         this.evaluator = eval;
+        this.encodingQuery = encodingQuery;
     }
     
     public Map<String, ?> attributesFor(DataObject template, DataFolder target, String name) {
         Element primData = Util.getPrimaryConfigurationData(helper);
         Element licenseEl = Util.findElement(primData, "project-license", Util.NAMESPACE); // NOI18N
-        if (licenseEl != null) {
-            return Collections.singletonMap("project", Collections.singletonMap("license", evaluator.evaluate(Util.findText(licenseEl)))); // NOI18N
+        Charset charset = encodingQuery.getEncoding(target.getPrimaryFile());
+        if (licenseEl == null && charset == null) {
+            return null;
         } else {
-            return null;
+            Map<String, String> values = new HashMap<String, String>();
+            if (licenseEl != null) {
+                values.put("license", evaluator.evaluate(Util.findText(licenseEl))); // NOI18N
+            }
+            if (charset != null) {
+                values.put("encoding", charset.name()); // NOI18N
+            }
+            return Collections.singletonMap("project", values); // NOI18N
         }
     }
     
diff --git a/ant.freeform/test/unit/data/example-projects/simplewithlicense/nbproject/project.xml b/ant.freeform/test/unit/data/example-projects/simplewithlicense/nbproject/project.xml
--- a/ant.freeform/test/unit/data/example-projects/simplewithlicense/nbproject/project.xml
+++ b/ant.freeform/test/unit/data/example-projects/simplewithlicense/nbproject/project.xml
@@ -15,6 +15,11 @@
                     <type>java</type>
                     <location>src</location>
                     <encoding>UTF-8</encoding>
+                </source-folder>
+                <source-folder>
+                    <label>src2</label>
+                    <type>java</type>
+                    <location>src2</location>
                 </source-folder>
             </folders>
             <ide-actions>
diff --git a/ant.freeform/test/unit/data/example-projects/simplewithlicense/src2/org/foo/AnotherClass.java b/ant.freeform/test/unit/data/example-projects/simplewithlicense/src2/org/foo/AnotherClass.java
new file mode 100644
--- /dev/null
+++ b/ant.freeform/test/unit/data/example-projects/simplewithlicense/src2/org/foo/AnotherClass.java
@@ -0,0 +1,37 @@
+/*
+ * DO NOT ALTER OR REMOVE COPYRIGHT NOTICES OR THIS HEADER.
+ * 
+ * Copyright 1997-2007 Sun Microsystems, Inc. All rights reserved.
+ * 
+ * The contents of this file are subject to the terms of either the GNU
+ * General Public License Version 2 only ("GPL") or the Common
+ * Development and Distribution License("CDDL") (collectively, the
+ * "License"). You may not use this file except in compliance with the
+ * License. You can obtain a copy of the License at
+ * http://www.netbeans.org/cddl-gplv2.html
+ * or nbbuild/licenses/CDDL-GPL-2-CP. See the License for the
+ * specific language governing permissions and limitations under the
+ * License.  When distributing the software, include this License Header
+ * Notice in each file and include the License file at
+ * nbbuild/licenses/CDDL-GPL-2-CP.  Sun designates this
+ * particular file as subject to the "Classpath" exception as provided
+ * by Sun in the GPL Version 2 section of the License file that
+ * accompanied this code. If applicable, add the following below the
+ * License Header, with the fields enclosed by brackets [] replaced by
+ * your own identifying information:
+ * "Portions Copyrighted [year] [name of copyright owner]"
+ * 
+ * Contributor(s):
+ * 
+ * Portions Copyrighted 2007 Sun Microsystems, Inc.
+ */
+
+package org.foo;
+
+/**
+ *
+ * @author Milan
+ */
+public class AnotherClass {
+
+}
diff --git a/ant.freeform/test/unit/src/org/netbeans/modules/ant/freeform/FreeformTemplateAttributesProviderTest.java b/ant.freeform/test/unit/src/org/netbeans/modules/ant/freeform/FreeformTemplateAttributesProviderTest.java
--- a/ant.freeform/test/unit/src/org/netbeans/modules/ant/freeform/FreeformTemplateAttributesProviderTest.java
+++ b/ant.freeform/test/unit/src/org/netbeans/modules/ant/freeform/FreeformTemplateAttributesProviderTest.java
@@ -42,11 +42,15 @@ package org.netbeans.modules.ant.freefor
 package org.netbeans.modules.ant.freeform;
 
 import java.util.Collections;
+import java.util.HashMap;
 import java.util.Map;
 import org.netbeans.api.project.Project;
 import org.netbeans.api.project.ProjectManager;
+import org.netbeans.api.project.ProjectUtils;
+import org.netbeans.api.project.SourceGroup;
 import org.openide.filesystems.FileObject;
 import org.openide.loaders.CreateFromTemplateAttributesProvider;
+import org.openide.loaders.DataFolder;
 
 /**
  * Test for freeform template attributes provider, currently providing only
@@ -64,9 +68,21 @@ public class FreeformTemplateAttributesP
         FileObject projdir = egdirFO.getFileObject("simplewithlicense");
         Project simpleWithLicense = ProjectManager.getDefault().findProject(projdir);
         CreateFromTemplateAttributesProvider provider = simpleWithLicense.getLookup().lookup(CreateFromTemplateAttributesProvider.class);
-        Map expResult = Collections.singletonMap("project", Collections.singletonMap("license", "cddl-netbeans-sun"));;
-        Map result = provider.attributesFor(null, null, null);
-        assertEquals(expResult, result);
+        SourceGroup[] groups = ProjectUtils.getSources(simpleWithLicense).getSourceGroups("java"); // JavaProjectConstants.SOURCES_TYPE_JAVA
+        for (SourceGroup group : groups) {
+            FileObject root = group.getRootFolder();
+            Map result = provider.attributesFor(null, DataFolder.findFolder(root), null);
+            assertEquals(1, result.size());
+            Map values = (Map)result.get("project");
+            if (root.getName().equals("src")) {
+                Map<String, String> expected = new HashMap<String, String>();
+                expected.put("license", "cddl-netbeans-sun");
+                expected.put("encoding", "UTF-8");
+                assertEquals(expected, values);
+            } else {
+                assertEquals(Collections.singletonMap("license", "cddl-netbeans-sun"), values);
+            }
+        }
     }
     
 }
diff --git a/apisupport.project/src/org/netbeans/modules/apisupport/project/queries/TemplateAttributesProvider.java b/apisupport.project/src/org/netbeans/modules/apisupport/project/queries/TemplateAttributesProvider.java
--- a/apisupport.project/src/org/netbeans/modules/apisupport/project/queries/TemplateAttributesProvider.java
+++ b/apisupport.project/src/org/netbeans/modules/apisupport/project/queries/TemplateAttributesProvider.java
@@ -42,6 +42,7 @@ package org.netbeans.modules.apisupport.
 package org.netbeans.modules.apisupport.project.queries;
 
 import java.util.Collections;
+import java.util.HashMap;
 import java.util.Map;
 import org.netbeans.spi.project.support.ant.AntProjectHelper;
 import org.netbeans.spi.project.support.ant.EditableProperties;
@@ -68,11 +69,12 @@ public class TemplateAttributesProvider 
         if (license == null && netBeansOrg) {
             license = "cddl-netbeans-sun"; // NOI18N
         }
-        if (license == null) {
-            return null;
-        } else {
-            return Collections.singletonMap("project", Collections.singletonMap("license", license)); // NOI18N
+        Map<String, String> values = new HashMap<String, String>();
+        if (license != null) {
+            values.put("license", license); // NOI18N
         }
+        values.put("encoding", "UTF-8"); // NOI18N
+        return Collections.singletonMap("project", values); // NOI18N
     }
 
 }