New Jersey Senate Committee Approves Tax Incentives for EV Infrastructure and Commercial Vehicles
Trenton, NJ – In a significant move to bolster New Jersey’s efforts in combating climate change and promoting sustainable transportation, the Senate Environment and Energy Committee has advanced a bill that introduces tax incentives for electric vehicle (EV) charging infrastructure and the purchase of commercial zero-emission vehicles. Sponsored by Senator Bob Smith, the legislation, S-210, aims to address the environmental impact of the transportation sector by encouraging the adoption of clean energy vehicles and supporting infrastructure.
Senator Smith, representing Middlesex and Somerset counties, emphasized the critical need to extend incentives beyond passenger EVs to include commercial vehicles, which are a significant source of fossil fuel emissions. “The transportation sector accounts for 42 percent of our state’s total greenhouse gas emissions,” Smith noted, underscoring the urgency of transitioning to electric and zero-emission vehicles as a key strategy for environmental protection.
Under the proposed legislation, businesses would be eligible for corporation business tax and gross income tax credits for expenses incurred in purchasing and installing EV charging stations, with a cap of 50 percent of the cost or $1,000 per station, whichever is lower. To qualify, the charging station must be exclusively used for the taxpayer’s business operations or be made available to tenants or guests of multifamily or mixed-use properties.
Additionally, the bill offers tax credits for the purchase of commercial zero-emission vehicles, capped at 50 percent of the price difference between the zero-emission vehicle and its conventionally fueled counterpart, up to specific limits based on the vehicle’s weight. The maximum credit ranges from $25,000 for vehicles weighing less than 14,000 pounds to $100,000 for those exceeding 26,500 pounds.
The committee’s 4-1 vote to advance S-210 reflects New Jersey’s commitment to reducing its carbon footprint through the promotion of clean transportation solutions.