The most aggressive EV tax credit in the country has just been signed into this state's law.
New Jersey has just passed the most aggressive electric vehicle state tax credit in the US, with governor Phil Murphy signing legislation that calls for up to a $5,000 tax credit per EV purchase. The amount of each credit will be based on EPA-estimated electric range, at a rate of $25 per mile up to 200 miles.
Plug-in hybrids are also eligible for the tax credit, InsideEVs reports, although only through the end of 2022, which is when the state's PHEV tax credit rules are set to run out. And, there is a $55,000 price cap on qualifying electric vehicles.
The price cap is meant to keep the EV tax credits from applying state funds to subsidize vehicle purchases by wealthy residents. Higher-priced EVs will remain eligible for US federal tax credits up to $7,500 in value, regardless of purchase price.
The 2020 Nissan Leaf starts at $31,600 before destination, tax, title, and other fees, with an EPA-estimated range of about 150 miles, giving it a state tax credit in New Jersey equivalent to around $3,750. Taken with a federal tax credit of up to $7,500, that equates to about $11,250 in total savings off of the purchase price. The Chevrolet Bolt EV, with its $36,620 starting MSRP and 259-mile range rating, could offer up to $12,500 in tax credits, with $5,000 coming from the state of New Jersey.
New Jersey already offers a sales tax exemption for battery-electric vehicles, so BEV buyers in the state need not worry about the state's 6.625-percent general sales tax.
The new law further calls for an expanded EV charging infrastructure, outlining goals to install thousands of Level-2 residential and high-speed DC charging stations at community locations and residential dwelling spaces, as well as along popular travel corridors. Together, the initiatives are designed to spur broader state-wide EV adoption in the hopes of getting some 330,000 light-duty EVs on the road by the end of 2025, and 2 million on the road by 2035.
New Jersey is one of more than a dozen CARB states in the US - states that have historically adhered to the California Air Resources Board's stricter clean air regulations. The US Environmental Protection Agency under the Trump administration has put CARB on blast, challenging its authority to set its own, unique emissions regulations.