New Jersey EV Tax Credits Guide

New Jersey residents have several opportunities for savings when purchasing an EV or upgrading home energy infrastructure. Here’s what you need to know.

As incentive programs shift over time, it is crucial that you research the current incentives before you buy, or consult a tax specialist, to ensure you qualify for a rebate or tax credit. The information in this article was current as of its publication date.

Yes. The purchase or lease of a full zero-emissions vehicle in New Jersey is exempt from state sales tax. Rebates are also available, based on $25 per mile of EPA rated all-electric range, up to $1,500 for a vehicle with a purchase price of $45,000 to $55,000 and up to $4,000 for a vehicle with a purchase price less than $45,000. Furthermore, electric vehicles are exempt from the state’s 0.4 percent fee applying to vehicles with low fuel efficiency or a sales price higher than $45,000.

Yes. The state sales tax exemption applies to the purchase or lease of a used EV.

Yes. New Jersey residents may qualify for a rebate of $250 for the installation of an eligible Level 2 home charging station from the state’s utility board. Some utility companies also offer rebates for the installation of certain residential charging systems, so interested New Jersey residents should check with their local utility.

New Jersey does not have rebates or credits for residential solar, but there are other incentives. Homeowners who install residential solar are exempt from property tax increases on the increased value of the home based on the solar system. Solar panel systems are also exempt from state sales tax. There may also be federal incentives available for New Jersey residents who install solar panels.

No, New Jersey does not assess additional fees for electric vehicles.

Drivers of EVs in New Jersey who register with the E-ZPass automated tolling system may be eligible for discounts on off-peak toll rates on the New Jersey Turnpike and Garden State Parkway, and are eligible to use the HOV carpool lanes on the New Jersey Turnpike. New Jersey residents who purchase an EV may also qualify for the Federal Electric Car Tax Credit of up to $7,500. New Jersey residents should also check with their local electric utilities for any additional credits or incentives.