New Jersey Electric Laws and Incentives
State Incentives
Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV)Rebate
New Jersey's AFV Rebate Program offers rebates to local government entities that convert vehicles to operate on alternative fuels or purchase original equipment manufacturer (OEM) AFVs. The rebate amounts, shown in the table below, can be used to cover the cost of converting a vehicle to operate on an alternative fuel or to cover the incremental cost of purchasing an OEM AFV, and vary according to the gross vehicle weight rating (GVWR) and whether the vehicle is dedicated or bi-fuel. HEVs may also qualify for the rebates. Eligible entities include local governments, state colleges and universities, school districts, and governmental authorities. The initial funding for this program was provided by a federal Congestion Mitigation and Air Quality (CMAQ) Improvement Program grant.
| GVWR (in pounds) | Rebate Amount (dedicated or hybrid) | Rebate Amount (bi-fuel) |
|---|---|---|
| Light-duty (<8,500) | Up to $4,000 | Up to $2,000 |
| Medium-duty (8,500-14,000) | Up to $7,000 | Up to $4,000 |
| Heavy-duty (>14,000) | Up to $12,000 | Up to $6,000 |
Alternative Fuel Infrastructure Rebate
New Jersey's Alternative Fuel Infrastructure Program has funding available to reimburse eligible local governments, state colleges and universities, school districts, and governmental authorities for 50% of the cost of purchasing and installing refueling infrastructure for alternative fuels. Up to $50,000 is available per applicant. Eligible fuels include natural gas, propane, electricity, ethanol (E85), and hydrogen.
High Occupancy Vehicle (HOV) Lane Exemption
New Jersey Turnpike Authority (NJTA) allows hybrid electric vehicles (HEVs) and alternative fuel vehicles (AFVs) to travel in the HOV lanes on the New Jersey Turnpike. Permitted AFVs must operate on electricity, methanol, ethanol, natural gas, liquefied petroleum gas, hydrogen, coal derived liquid fuels, or fuels derived from biological materials. Any other federally approved AFVs are also permitted to utilize the NJTA's HOV lanes. For a complete list of eligible HEVs, see the New Jersey Turnpike Authority Web site.
Zero Emissions Vehicle (ZEV) Tax Exemption
ZEVs sold, rented, or leased in New Jersey are exempt from state sales and use tax. This exemption is not applicable to partial zero emission vehicles, including hybrid electric vehicles. For a list of qualifying ZEVs, see the New Jersey Department of the Treasury Web site. (Reference New Jersey Statutes 54:32B-8.55)
State Laws and Regulations
Low Emission or Alternative Fuel Bus Acquisition Requirement
All buses purchased by the New Jersey Transit Corporation (NJTC) must be: 1) equipped with improved pollution controls that reduce particulate emissions; or 2) powered by a fuel other than conventional diesel. Qualifying vehicles include compressed natural gas vehicles, hybrid electric vehicles, fuel cell vehicles, vehicles operating on biodiesel or ultra low sulfur fuel, or vehicles operating on any other bus fuel approved by the U.S. Environmental Protection Agency. If the NJTC is unable to meet the bus purchase requirement, a report must be submitted to the New Jersey Senate and General Assembly detailing the reasons and an exemption may be granted.(Reference New Jersey Statutes 27:1B-22)
Low-Speed Vehicle (LSV) Access to Roadways
A LSV is defined as a four-wheeled vehicle capable of achieving speeds of up to 20 miles per hour (mpg) but not more than 25 mph on a paved surface. An LSV cannot be powered by gas or diesel fuel and must comply with federal safety standards as noted in Title 49 of the Code of Federal Regulations, part 571.500. LSVs may not operate on roadways with posted speed limits greater than 25 mph, or greater than 35 mph if deemed appropriate by a municipality or the New Jersey Department of Transportation. Additional registration requirements apply. (Reference New Jersey Statutes 39:4-31)
