Electricity Laws and Incentives in New Jersey

The list below contains summaries of all New Jersey laws and incentives related to electricity.

Laws and Regulations

Clean Truck Port Requirements

Port drayage trucks must meet or exceed Model Year 2010 engine federal emissions standards to access the Port Authority of New York & New Jersey (PANYNJ) marine terminals. Drayage trucks operating on liquefied or compressed natural gas, electricity, or hybrid electric technology are exempt from these requirements. For purposes of this rule, drayage trucks are defined as on-road vehicles with a gross vehicle weight rating of 33,001 pounds or greater and intended to load, unload, or transport cargo from PANYNJ terminals. Additional rules apply. For more information, see the PANYNJ website.

Electric School Bus Program

The New Jersey Department of Environmental Protection (DEP) must implement an Electric School Bus program to determine the reliability and cost effectiveness of replacing diesel-powered school buses with electric school buses. Over a three-year period, DEP must select 18 school districts and school bus contractors that operate in the northern, central, and southern regions of New Jersey to participate.

Each year, DEP must award grants to the eligible participants for the purchase or lease of electric school buses and associated charging infrastructure. At least half of program participants and grant funding must be located in a low-income, urban, or environmental justice communities.

(Reference New Jersey Assembly Bill 1282, 2022)

Electric Vehicle (EV) Charging Station Development

Municipal master plans shall promote the installation of EV charging stations in locations including commercial districts, public transportation facilities, transportation corridors, and rest stops. (Reference New Jersey Statutes 40:55D-28, 40:55D-89, and 40A:12A-7)

Electric Vehicle (EV) Charging Station Make-Ready Requirements for Multi-Unit Dwellings (MUDs)

New MUD developments with five or more units must designate 15% of required off-street parking as electric vehicle (EV) make-ready parking spaces. Prior to occupancy, EV charging stations must be installed in 5% of off-street parking. MUDs must then install EV charging stations in an additional 5% of parking spaces within 3 years of occupancy and another 5% within 6 years of occupancy. MUDs may install make-ready parking spaces and EV charging stations at a faster rate than required. Throughout the installation of EV charging stations in make-ready parking spaces at MUDs, at least 5% of EV charging stations must be accessible for people with disabilities.

The Site Improvement Advisory Board must submit a recommendation to the Commissioner of Community Affairs to amend the statewide site improvement standards for MUDs to include requirements for parking spaces with EV charging stations in the calculation of minimum required parking spaces. Requirements must include the following:

  • A parking space with an EV charging station or make-ready equipment may count as two parking spaces for the purpose of complying with a minimum parking space requirement but may not reduce total required parking by more than 10 percent.

  • All parking space calculations for EV charging stations and make-ready equipment pursuant to this section shall be rounded up to the next full parking space.

(Reference Senate Bill 3223, 2021)

Electric Vehicle (EV) Charging Station Make-Ready Requirements for New Developments

As a condition of preliminary site plan approval, new non-residential developments with parking lots and garages must meet the following make-ready requirements:

Number of Off-Street Parking Spaces Minimum Number of Make-Ready Parking Spaces
50 or fewer 1
51 to 75 2
76 to 100 3
101 to 150 4
Over 150 4% of parking spaces; 5% of the make-ready spaces must be disability-accessible

Parking lots and garages may install make-ready parking spaces and EV charging stations at a faster rate than required. Retailers that provide 25 or fewer off-street parking spaces are not required to provide or install any EV charging stations or make-ready parking spaces.

Parking lots and garages may install EV charging stations in lieu of make-ready spaces to satisfy these requirements. Standards must be developed that provide for the progression of accessible make-ready parking spaces to accessible EV charging station parking spaces and conform to the requirements of the most recent International Building Code and International Residential Code published by the International Code Council except as the Commissioner of Community Affairs (Commissioner) deems appropriate to deviate from those codes.

The Commissioner must publish a model land use ordinance to address installation, sightline, setback requirements, and other health- and safety-related specifications for EV charging stations and make-ready parking spaces and post the model land use ordinance on the department’s website. The model land use ordinance applies to all municipalities in New Jersey, but municipalities may adopt reasonable standards to address installation, sightline, and setback requirements or other health- and safety-related specifications for EV charging stations and make-ready parking spaces. Municipalities may not require more make-ready parking spaces than the land use ordinance published by the Commissioner.

(Reference Senate Bill 3223, 2021)

Electric Vehicle (EV) Charging Station Policies for Condominiums

Condominium associations may not prohibit or restrict the installation or use of EV charging stations in a homeowner’s designated parking space. Condominium associations may put reasonable restrictions on EV charging stations, but the policies may not significantly increase the cost of the EV charging station or prohibit installation. Homeowners must comply with applicable health and safety codes and architectural standards, engage a licensed installation contractor, and provide a certificate of insurance. The homeowner is responsible for the cost of the installation, operation, maintenance, repair, removal, or replacement of the station in their parking space, as well as any resulting damage to the EV charging station or surrounding area. (Reference New Jersey Statutes 45:22A-43)

Electric Vehicle (EV) Charging Station Rebate Program Authorization

The New Jersey Board of Public Utilities is authorized to establish a residential EV charging station incentive program. (Reference New Jersey Statutes 48:25-6)

Electric Vehicle (EV) Parking Space Make-Ready Permitting Requirements

EV make-ready parking spaces at existing service stations, existing retail establishments, or any other existing building may be approved through the issuance of a municipal zoning permit by meeting the following requirements:

  • The proposed installation does not violate bulk requirements applicable to the property;
  • All other conditions of prior approvals continue to be met; and
  • The proposed installation complies with the construction codes adopted in, or promulgated pursuant to, the State Uniform Construction Code, safety standards concerning the installation, and state rules or regulations concerning EV charging stations.
Installation of EV charging stations or EV make-ready parking spaces shall be considered a permitted accessory use for all municipal zoning or use districts.

(Reference Senate Bill 3223, 2021)

Electric Vehicle (EV) and EV Charging Station Deployment Goals

The State of New Jersey will work to increase the number of EVs and related infrastructure to meet the following state goals:

  • 10% of new buses purchased by the New Jersey Transit Corporation must be zero emission vehicles (ZEV) by December 31, 2024. Then 50% of new buses must be ZEV by December 31, 2026, and 100% must be ZEV by December 31, 2032.
  • By December 31, 2025, there must be 400 direct current fast charging (DCFC) stations and 1,000 Level 2 EV charging staitons installed and available for public use at minimally 200 locations. 75 locations must include at least two DCFC stations installed along travel corridors, while 100 locations must include at least two DCFC stations in community locations. Additionally, 15% of all multi-family residential properties must include EV charging station infrastructure and 20% of all franchised overnight lodging must have EV charging stations available for guests.
  • By December 31, 2035, there will be 2 million registered light-duty EVs in the state, and 100% of state-owned, non-emergency light-duty vehicles must be EVs.
  • By December 31, 2040, 85% of all new light-duty vehicles sold in the state will be EVs.

The New Jersey Board of Public Utilities (NJBPU) must establish goals for transportation electrification and infrastructure development for medium- and heavy-duty on-road diesel vehicles and charging infrastructure by December 31, 2020. For more information, see the NJBPU Electric Vehicle Incentive Programs website.

The New Jersey Department of Environmental Protection (NJDEP) develops and implements a public education program regarding the availability and benefits of EVs, state EV goals, and the availability of EV and EV charging station incentives.

NJDEP and NJBPU must prepare and submit a report to the governor and legislature every five years on the state of the EV market in New Jersey, progress towards achieving the above goals, barriers to the achievement of the goals, and recommendations for legislative or regulatory action to address barriers.

(Reference New Jersey Statutes 48:25-3)

Energy Master Plan

New Jersey has developed an Energy Master Plan (EMP) that will guide the State to achieve its goals of electrifying the transportation sector and achieving 100% carbon-neutral electricity generation by 2050. The EMP calls for decarbonization of the transportation sector through:

  • Supporting the deployment of 330,000 light-duty electric vehicles (EVs) by 2025;
  • Deploying electric vehicle (EV) charging stations throughout the state;
  • Creating incentives for EV charging stations;
  • Educating consumers and fleet owners on EVs;
  • Transitioning state fleet vehicles to EVs;
  • Partnering with industry to develop incentives for medium- and heavy-duty all-electric or fuel-cell vehicles; and
  • Exploring policies that accelerate the adoption of alternative fuels.

For more information, see the Energy Master Plan website.

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, the organization must submit a report to the New Jersey Senate and General Assembly detailing the reasons and the state legislature may grant an exemption. (Reference New Jersey Statutes 27:1B-22)

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty (MHD) ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Requirement

New Jersey has adopted the California Advanced Clean Trucks requirements specified in Title 13 of the California Code of Regulations, requiring manufacturers to meet California’s ZEV production and sales requirements. Beginning with model year 2025, manufacturers will be required to sell zero-emission trucks as an increasing percentage of their annual sales for Class 2b through Class 8 vehicles in New Jersey. ZEVs include all-electric and fuel cell electric vehicles. For more information, see the New Jersey Department of Environmental Protection Advanced Clean Trucks Program and Fleet Reporting Requirements. (Reference New Jersey Administrative Code 7:27-31, 33 and 7:27A-3.10)

Public Utility Definition

An entity that owns, controls, operates, or manages electric vehicle supply equipment is not defined as a public utility. (Reference New Jersey Statutes 48:25-10)

Residential Electric Vehicle (EV) Charging Station Installation Policies

A developer of a single-family residence that includes a designated parking space must offer to install an EV charging station at the residence of the prospective owner unless the installation of the EV charging station is already included in the sale of the unit. The New Jersey Department of Community Affairs, New Jersey Department of Environmental Protection, and New Jersey Board of Public Utilities must provide information to developers and prospective owners on the environmental benefits and potential energy cost savings associated with EV charging stations, and available incentives. (Reference New Jersey Statutes 52:27D-141.11)

Zero Emission Vehicle (ZEV) Deployment Support

New Jersey joined California, Connecticut, Maine, Maryland, Massachusetts, New York, Oregon, Rhode Island, and Vermont in signing a memorandum of understanding (MOU) to support the deployment of ZEVs through involvement in a ZEV Program Implementation Task Force (Task Force). In May 2014, the Task Force published a ZEV Action Plan (Plan) identifying 11 priority actions to accomplish the goals of the MOU, including deploying at least 3.3 million ZEVs and adequate fueling infrastructure within the signatory states by 2025. The Plan also includes a research agenda to inform future actions. On an annual basis, each state must report on the number of registered ZEVs, the number of public electric vehicle (EV) charging stations and hydrogen fueling stations, and available information regarding workplace fueling for ZEVs.

In June 2018, the Task Force published a new ZEV Action Plan for 2018-2021. Building on the 2014 Action Plan, the 2018 Action Plan makes recommendations for states and other key partners in five priority areas:

  • Raising consumer awareness and interest in electric vehicle technology;
  • Building out a reliable and convenient residential, workplace and public charging/fueling infrastructure network;
  • Continuing and improving access to consumer purchase and non-financial incentives;
  • Expanding public and private sector fleet adoption; and
  • Supporting dealership efforts to increase ZEV sales.

For more information, see the Multi-State ZEV Task Force website.

Zero Emission Vehicle (ZEV) Infrastructure Support

Any individual, business, or public entity completing infrastructure improvement projects or redeveloping residential, commercial, industrial, public, or other structures is encouraged to include ZEV fuel and charging infrastructure in redevelopment plans. ZEVs must meet emissions and compliance requirements specified in Title 13 of the California Code of Regulations for the applicable model year, including but not limited to, electric vehicles (EVs) and hydrogen fuel cell vehicles. Infrastructure projects are encouraged to:

  • Identify locations for public electric vehicle charging stations and hydrogen fueling stations;
  • Construct ZEV charging and refueling infrastructure;
  • Build and allow EV charging in the right-of-way; and,
  • Designate EV only parking spaces.

    (Reference Assembly Bill 1653, 2021)

    Zero Emission Vehicle (ZEV) Initiative

    The New Jersey Department of Environmental Protection, New Jersey Board of Public Utilities, and the New Jersey Economic Development Authority signed a memorandum of understanding (MOU) to increase the number of ZEVs in the State and meet the State’s goal of registering 330,000 ZEVs by 2025 through involvement in the New Jersey Partnership to Plug-In (Partnership). The responsibilities of the Partnership include:

    • Mapping existing and potential locations for electric vehicle (EV) charging stations;
    • Reviewing state- and municipal-level permit processes for the installation of EV charging stations and identifying best practices to streamline these processes;
    • Expanding existing efforts to educate consumers about ZEVs;
    • Evaluating strategies to finance an EV charging station network;
    • Developing a rebate program to incentivize the purchase of new and used ZEVs;
    • Creating a method to track the usage of EV charging stations throughout the State;
    • Identifying programs and resources that can be used to attract ZEV-related companies to the State; and
    • Coordinating with other state agencies and departments to further implement the goals of the Partnership.

    For more information, see the Regional Greenhouse Gas Initiative website.

    Zero Emission Vehicle (ZEV) Sales Regulations

    A motor vehicle franchisor that exclusively manufacturers ZEVs and was licensed by the New Jersey Motor Vehicle Commission prior to January 1, 2014, can buy from and sell vehicles to a consumer. The franchisor can own or operate up to four sales locations in the state and must have at least one retail facility for servicing ZEVs sold, offered for sale, or otherwise distributed in the state. The franchisor is not required to establish or operate a sales location at a ZEV service facility. Annually, all motor vehicle franchises must report the number of ZEVs sold in the state within the prior calendar year to the New Jersey Division of Taxation. (Reference New Jersey Statutes 56:10-27.1 and 54:32B-8.55a)

    Utility/Private Incentives

    Commercial Electric Vehicle (EV) Charging Station Installation Rebates – PSE&G

    PSE&G offers commercial customers rebates for the behind the meter and the pole-to-meter installation of Level 2 and public direct current fast charging (DCFC) stations. Rebates are available in the following amounts:

    Charger Type Behind the Meter Rebate Amount Pole-to-Meter Rebate Amount
    Level 2 EV Charging Stations $7,500 per EV Charging Station; up to $30,000 per site Up to $10,000
    Public DCFC Station $25,000 per DCFC Station; up to $100,000 per site Up to $50,000

    Eligible entities include multi-family residences, government entities, businesses, and any location with public access. For more information, including eligibility requirements, see the PSE&G Electric Vehicle Charging Program website.

    Electric Vehicle (EV) Charging Station Rebates - Atlantic City Electric (ACE)

    ACE offers make-ready rebates to residential, multi-unit dwelling (MUD), commercial, and fleet customers for the installation of Level 2 EV charging stations. Additionally, make-ready rebates are available for publicly accessible Level 2 and direct current fast charging (DCFC) stations. Rebates are available in the following amounts:

    Location Type EV Charging Station Type Maximum Rebate Amount Maximum Number of Eligible EV Charging Stations or Ports per Location
    Residential Level 2 $1,000 per EV Charging Station; up to 50% of the eligible costs 1 EV Charging Station
    MUD Level 2 $5,000 per port; up to 75% of eligible costs 10 ports
    Workplace Level 2 $4,500 per port; up to 50% of eligible costs 10 ports
    Fleets Level 2 $2,500 per port; up to 50% of eligible costs 10 ports
    Public Level 2 $4,500 per port; up to 50% of eligible costs 2 ports
    Public DCFC Station $60,000 per port; up to 90% of eligible costs 2 ports

    MUD customers include residents and commercial entities controlling the property. MUD customers in overburdened communities are eligible for a rebate of up to $6,700 per port. For more information, including eligibility requirements and overburdened community locations, see the ACE EVsmart Residential, Multi-family, Public, Workplace & Fleet Rebates website.

    Electric Vehicle (EV) Infrastructure Support

    New Jersey utilities joined the National Electric Highway Coalition (NEHC), committing to create a network of direct current fast charging (DCFC) stations connecting major highway systems from the Atlantic Coast to the Pacific of the United States. NEHC utility members agree to ensure efficient and effective fast charging deployment plans that enable long distance EV travel, avoiding duplication among coalition utilities, and complement existing corridor DCFC sites. For more information, including a list of participating utilities and states, see the NEHC website.

    Residential Electric Vehicle (EV) Charging Station Installation Rebate – PSE&G

    PSE&G offers residential customers a rebate of up to $1,500 for the behind the meter installation of a Level 2 EV charging station. Participants may also be eligible for a rebate of up to $5,000 for pole-to-meter utility service upgrades. For more information, see the PSE&G Electric Vehicle Charging Program website.

    State Incentives

    Electric Vehicle (EV) Charging Station Grants

    The New Jersey Department of Environmental Protection provides grants through the It Pay$ to Plug In: New Jersey’s Electric Vehicle Workplace Charging Grant Program (Program) to support plug-in electric vehicle adoption and EV charging station installation. Reimbursement grants are offered on a first-come, first-served basis for the cost and installation of eligible EV charging stations at workplaces, government and educational facilities, non-profits, and multi-unit dwellings.

    The Program is part of New Jersey’s Energy Master Plan. For more information, including application and eligibility requirements, visit the Drive Green NJ Charging Challenge website.

    Electric Vehicle (EV) Fleet Grant Program

    The New Jersey Board of Public Utilities offers local and state government entities grants of up to $4,000 for the purchase of a new or pre-owned EV and up to $1,500 for the purchase of an EV charging station. Grants are awarded on a first-come, first-served basis, with award amounts limited based on government entity type and population size. For more information, including eligibility requirements and how to apply, see the Clean Fleet Electric Vehicle Incentive Program website.

    Electric Vehicle (EV) and EV Charging Station Rebate

    The New Jersey Board of Public Utilities’ (NJBPU) Charge Up New Jersey program offers point-of-sale rebates to New Jersey residents for the purchase or lease of a new light-duty EV. Rebates vary based on vehicle purchase price the vehicle’s U.S. Environmental Protection Agency (EPA) rated all-electric range are available in the following amounts:

    Purchase Price Rebate Amount
    $45,000 to $55,000 $25 per mile of EPA rated all-electric range, up to $2,000
    Less than $45,000 $25 per mile of EPA rated all-electric range, up to $4,000

    The NJBPU also offers residents a $250 rebate for the purchase of an eligible residential EV charger through the Charge Up Residential Charger Program. For more information, including eligibility requirements and funding availability, see the NJBPU EV Incentive Program and Charge Up New Jersey website.

    (Reference New Jersey Statutes 48:25-4)

    High Occupancy Vehicle (HOV) Lane Exemption

    The Arizona Department of Transportation (ADOT) allows qualified alternative fuel vehicles (AFV) with an AFV license plate to use HOV lanes, regardless of the number of occupants. Qualified AFVs include vehicles powered exclusively by electricity, propane, natural gas, hydrogen, or a blend of hydrogen with propane or natural gas. This exemption expires September 20, 2025. For more information about vehicle eligibility and HOV access, visit the ADOT AFV website.

    (Reference Arizona Revised Statutes 1-215 and 28-2416)

    Medium- and Heavy-Duty Vehicle Electrification Grants

    The New Jersey Department of Environmental Protection (NJDEP) offers incentives to cover the incremental cost of replacing diesel vehicles with all-electric vehicles. Incentives are available for the 100% of the incremental cost of the vehicle, including associated charging infrastructure. Eligible vehicles include shuttle buses, school buses, garbage trucks, and transit buses. Privately-owned school buses under contract with a public-school district are also eligible. Priority will be given to projects in overburdened communities. This program is funded by Regional Greenhouse Gas Initiative (RGGI) proceeds. For more information, including eligibility requirements, see the NJDEP RGGI Funding for Transportation Electrification website.

    Medium-Duty Zero Emission Vehicle (ZEV) Voucher Program

    The New Jersey Zero Emission Incentive Program (NJ ZIP) will pilot a voucher program for the purchase of new, medium-duty ZEVs registered in New Jersey. Commercial, industrial, or institutional organizations located, or primarily operating, within the Greater Camden, Newark, New Brunswick, and greater Shore areas are eligible to apply. Vouchers are available for up to 100% of purchase price amounts, based on the following weights:

    Vehicle WeightVehicle ClassAmount
    8,501 - 10,000 pounds (lbs.)Class 2b$25,000
    10,0001 - 14,000 lbs.Class 3$55,000
    14,001 - 16,000 lbs.Class 4$75,000
    16,001 - 19,500 lbs.Class 5$85,000
    19,501 - 26,000 lbs.Class 6$100,000

    Vehicles must be purchased through qualified vendors, after receiving voucher approval. Additional funding is available to qualified woman-, minority-, or veteran-owned businesses. Funding may not be combined with other state incentive programs unless applicants meet multiple requirements. This program is funded by Regional Greenhouse Gas Initiative proceeds. For more information, including eligibility requirements, see the NJ ZIP Program website.

    (Reference New Jersey Administrative Code 7:27D)

    New Jersey's National Electric Vehicle Infrastructure (NEVI) Planning

    The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the New Jersey Department of Transportation (NJDOT) to submit an EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office by August 1, 2022, describing how the state intends to distribute NEVI funds. Plans must be established according to NEVI guidance.

    For more information about New Jersey’s NEVI planning process, see the New Jersey Department of Environmental Protection Infrastructure Investment and Jobs Act website.

    Plug-In Electric Vehicle Toll Discount Program

    New Jersey Turnpike Authority's Green Pass Discount Plan provides a 10% discount on off-peak New Jersey Turnpike and Garden State Parkway toll rates for drivers of vehicles that have a fuel economy of 45 miles per gallon or higher and meet the California Super Ultra Low Emission Vehicle standard. Vehicles must register with New Jersey E-ZPass. For more information, including application instructions, see the E-ZPass Discount Programs website.

    Zero Emissions Vehicle (ZEV) Tax Exemption

    ZEVs sold, rented, or leased in New Jersey are exempt from state sales and use tax. This exemption does not apply to partial ZEVs, including hybrid electric vehicles. ZEVs are defined as vehicles that meet California Air Resources Board zero emission standards for that model year. For a list of qualified ZEV, see the New Jersey Department of the Treasury ZEV Sales Tax Exemption website. (Reference New Jersey Statutes 54:32B-8.55)

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