TRENTON – A pair of bills sponsored by Senator Nilsa Cruz-Perez that would provide corporate business and gross income tax credits for the purchase of compressed natural gas vehicles and purchase and installation of electric vehicle charging stations cleared the Senate Environment and Energy Committee today.
“New Jersey is a transportation hub in the Northeast. We are within a few hours of some of the largest markets in the country and also the home of one of the country’s busiest ports,” said Senator Cruz-Perez (D-Camden/Gloucester). “However, the state’s transportation sector is the biggest contributor to greenhouse-gas pollution. I believe that the introduction of more natural gas and electric vehicles on our roadways can help to reduce that pollution.”
The first bill, S-2253, would provide corporate business and gross income tax credits for the purchase of compressed natural gas vehicles. The tax credits would be available for purchases made in tax years beginning in 2019, 2020 and 2021.
For business entities, the bill would provide a credit for the purchase of CNG passenger automobiles and Class 8 CNG trucks. Each credit would be available under the corporate business tax and gross income tax. To qualify, the taxpayer would have to use the vehicle directly and exclusively in their business, trade or occupation.
Natural gas powers more than 160,000 vehicles in the United States. CNG vehicles store natural gas in tanks where it remains in the gaseous state. The advantages of natural gas as a transportation fuel includes its domestic availability, widespread distribution infrastructure and reduced greenhouse gas emissions compared to conventional gasoline and diesel fuels.
The second bill, S-2255, would provide corporate business and gross income tax credits for the purchase and installation of electric vehicle charging stations. The credits would become available for the taxpayer tax periods beginning in calendar years 2019, 2020 and 2021.
The bill would provide credits under the corporate business tax and the gross income tax for electric vehicle charging stations used directly and exclusively by the taxpayer in their business, trade or occupation. For charging stations purchased and installed during the 2019 tax period, a taxpayer would be allowed a credit in an amount of 25 percent of the cost, up to $500 per electric vehicle charging station. For a charging station purchased and installed during the 2020 tax period, the credit would be 15 percent of the cost, up to $300 per charging station. Finally, for a charging station purchased and installed during the 2021 tax period, the credit would be eight percent of the cost, up to $150 per station.
New Jersey now has roughly 14,000 plug-in vehicles on the road. Most electric vehicle charging occurs at home, followed by at work. This bill will help residents and businesses install the infrastructure needed to facilitate the transition to electric vehicles by incentivizing the installation of charging stations where they are most used.
The bills, S-2253 and S-2255, were released from committee by a vote of 3-0-2 and 5-0 respectively. Both bills will next head to the Senate Budget and Appropriations Committee for further consideration.