Trenton – In an effort to encourage businesses and residents to turn to more environmentally friendly transportation options, the Senate Environment and Energy Committee today advanced legislation sponsored by Senator Bob Smith that would provide corporation business tax and gross income tax credits for the purchase of electric vehicle charging stations and commercial zero emissions vehicles.
“Transportation is the single largest source of greenhouse gas emissions in New Jersey, accounting for 42 percent of the State’s emissions,” said Senator Smith (D-Middlesex/Somerset), chair of the Senate Environment and Energy Committee. “We have made great strides in the last few years to accelerate electrification of the State’s transportation sector. However, more aggressive strategies are needed to increase electric vehicle adoption. In order to effectively combat climate change, it is imperative that we do all that we can to encourage residents and businesses to make the switch from gas-powered vehicles to electric and other zero emissions vehicles.”
The bill, S-429, would provide two types of tax credits: one for electric vehicle (EV) charging stations and the other for the purchase of commercial zero emission vehicles (ZEVs).
The first credit, for EV charging stations, would be based on the cost to purchase and install an EV charging station at a taxpayer’s business, trade, or occupation, or at the taxpayer’s primary New Jersey residence. The credit would be capped at 50 percent of the amount paid towards the purchase and installation of the EV charging station during a privilege period or taxable year, or $1,000 per station, whichever amount is less.
The second credit, for commercial ZEVs, would be based on the difference in the amount paid by a taxpayer for a qualified commercial ZEV compared to what the taxpayer would have paid for a comparable gas or diesel-fueled vehicle. This credit would be capped at 50 percent of that difference paid towards the purchase of a qualified commercial ZEV during the privilege period or taxable year, with caps depending on the size of the vehicle, whichever amount is less. This credit would provide a much-needed incentive for businesses to convert their fleets to ZEVs, and would apply to light, medium, and heavy-duty commercial vehicles.
The bill was released from committee by a vote of 5-0.