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 2014 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 Drayage Truck Registration 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 Statutes 26:2C-8.58)

Electric Vehicle (EV) Charger Incentive Requirement

Any state agency that offers an incentive for the installation of EV chargers must require that the EV charger is operational at least 97% of the time. State agencies must regularly review the site-wide uptime requirement on a biennial basis, to ensure that it is consistent with the minimum uptime requirement under the National Electric Vehicle Infrastructure Formula Grant Program.  Each State agency must develop and implement a process to monitor compliance with, and to enforce, the site-wide uptime requirement.

(Reference Senate Bill 3102, 2024)

Electric Vehicle (EV) Charger Make-Ready Requirements for Multifamily Housing

New or reconstructed multifamily housing developments with five or more units must designate 15% of required off-street parking as EV make-ready parking spaces, in proportion to new or reconstructed multifamily housing. Prior to occupancy, EV chargers must be installed in 5% of off-street parking. Multifamily housing must then install EV chargers in an additional 5% of parking spaces within 3 years of occupancy and another 5% within 6 years of occupancy. Multifamily housing may install make-ready parking spaces and EV chargers at a faster rate than required. Throughout the installation of EV chargers in make-ready parking spaces at multifamily housing, at least 5% of EV chargers must be accessible for people with disabilities. This does not apply to multifamily housing that is entirely restricted to low- or moderate-income housing. Additional terms and conditions apply.

(Reference New Jersey Statutes 40:55D-5, 40:55D-66.20, 52:27D-119, and 40:55D-66.2 and Senate Bill 3490, 2024)

Electric Vehicle (EV) Charger 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:

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.

In September 2021, the Commissioner of Community Affairs (Commissioner) published 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. Requirements 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.

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 New Jersey Statutes 40:55D-4, 40:55D-5, 40:55D-66.20, and 40:55D-66.21)

Electric Vehicle (EV) Charging Depot Demonstration Project

The Board of Public Utilities (Board) must develop a request for proposal to determine eligibility for the establishment of demonstration projects involving the development of EV charging depots for EV use. The proposal shall describe the following:

• The requirements for the provision of EV charging depots;

• The production or storage of Class I renewable energy;

• Demand management plans; and,

• The total number of EV miles traveled, which depots shall, at a minimum, be capable of supporting coincident peak sufficient to meet vehicle electric loads.

Priority will be given to direct current (DC) fast charging demonstration projects for medium- and heavy-duty fleets. Additional terms and conditions apply. The Board must report the results of the demonstration projects to the Legislature by January 2029.

(Reference Assembly Bill 4794, 2024)

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 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 and 45:22A-48.4)

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 New Jersey Statutes 40:55D-5 and 40:55D-66.19)

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 stations 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. In June 2021, NJBPU release draft goals for public feedback. For more information, see the NJBPU EV 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 (MHD) Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, Nevada, 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 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 MHD 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) Fee

Beginning July 1, 2024, ZEV owners must pay an annual fee of $250 in addition to standard registration fees. ZEV fees increase by $10 every year until 2028. The fees will contribute to the Transportation Trust Fund Account – Subaccount for Capital Reserves to support transportation projects.

(Reference Assembly Bill 4011, 2024)

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 New Jersey Statutes 52:27D-489c)

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)

State Incentives

Electric Vehicle (EV) Charging Station Grants

The New Jersey Department of Environmental Protection (NJDEP) provides grants through the It Pay$ to Plug In: New Jersey’s Electric Vehicle Workplace Charging Grant Program (Program) for EV charging station installation. Grants are available in the following amounts:

EV Charging Station Type	Maximum Rebate Amount per Port	Maximum Number of Eligible EV Charging Ports per Location
Level 1	$750	5
Level 2	$4,000	20

Grants are awarded on a first-come, first-served basis. Eligible EV charging stations must be located at workplaces, government agencies, non-profits, or multi-unit dwellings. The Program is part of New Jersey’s Energy Master Plan. For more information, including application and eligibility requirements, see the NJDEP It Pay$ to Plug In website.

Electric Vehicle (EV) Fleet Grant Program

The New Jersey Board of Public Utilities (NJBPU) offers local and state government fleets grants for the purchase of new or pre-owned all-electric vehicles and associated charging infrastructure. Grants are awarded on a first-come, first-served basis. Grant award amounts vary based on government entity type and population size. Overburdened municipalities are eligible for additional incentives. For more information, including eligibility requirements and how to apply, see the NJBPU Clean Fleet EV Incentive Program website.

Electric Vehicle (EV) 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 EVs 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.

Electric Vehicle (EV) and EV Charging Station Grant Program

The New Jersey Department of Environmental Protection (NJDEP) administers the eMobility Grant Program, which provides funding to increase electric mobility solutions including carshare, rideshare, and ride hailing services for residents in underserved areas. Eligible projects include EVs and EV charging stations. For more information, including funding availability and eligibility requirements, see the NJDEP Drive Green e-Mobility 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 and the vehicle’s U.S. Environmental Protection Agency (EPA) rated all-electric range. Rebates 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 $1,500
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 Level 2 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 48:25-1 through 48:25-8)

High Occupancy Vehicle (HOV) Lane Exemption

New Jersey Turnpike Authority (Authority) allows qualified plug-in electric vehicles to travel in the HOV lanes located between Interchange 11 and Interchange 14 on the New Jersey Turnpike. For more information, see the Authority Travel Tools website. (Reference 49 New Jersey Register 3236(b) and New Jersey Administrative Code 19:9-1.24)

Medium- and Heavy-Duty (MHD) 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 MHD ZEVs registered in New Jersey. Eligible applicants include commercial, industrial, or institutional organizations. Vouchers are available for up to 100% of MHD ZEV purchase prices, and are based on gross vehicle weight rating (GVWR):

GVWR	Vehicle Class	Amount
8,501 - 10,000 pounds (lbs.)	Class 2b	$20,000
10,0001 - 14,000 lbs.	Class 3	$50,000
14,001 - 16,000 lbs.	Class 4	$65,000
16,001 - 19,500 lbs.	Class 5	$75,000
19,501 - 26,000 lbs.	Class 6	$90,000
26,001 - 33,000 lbs.	Class 7	$135,000
33,001+ lbs.	Class 8	$175,000

Applicants may receive a maximum of $3,000,000 in vouchers. Vehicles must be purchased through qualified vendors. Additional funding is available to applicants located in environmental justice communities. 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)

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.

Multi-Unit Dwelling (MUD) Electric Vehicle (EV) Charging Station Grants

The New Jersey Board of Public Utilities’ (NJBPU) MUD EV Charger Incentive Program offers grants of up to $4,000 to owners and operators of MUDs for the purchase and installation of eligible Level 2 EV charging stations. MUDs in overburdened municipalities are eligible for grants of up to $6,000. For more information, including how to apply, see the NJBPU EV Incentive Program website.

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 annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office of Energy and Transportation (Joint Office), describing how the state intends to distribute NEVI funds. The submitted 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. To review New Jersey’s NEVI plan, see the Joint Office State Plans for EV Charging website.

Public Electric Vehicle (EV) Charging Station Grants

The New Jersey Board of Public Utilities’ (NJBPU) EV Tourism Program offers grants to local businesses and municipalities for the purchase of up to six Level 2 and two direct current fast charging (DCFC) stations for installation at New Jersey tourism sites and landmarks. Level 2 EV charging stations are eligible for grants of up to $5,000, and DCFC are eligible for grants of up to $50,000. Eligible sites include boardwalks, parks, attractions, and overnight lodging establishments. For more information, including eligibility criteria and funding availability, see the NJBPU EV Incentive Program website.

Zero Emissions Vehicle (ZEV) Tax Exemption

ZEVs sold, rented, or leased in New Jersey before October 1, 2024, are exempt from state sales and use tax. This exemption does not apply to partial ZEVs, including plug-in hybrid electric vehicles. ZEVs that are sold on or after October 1, 2024, and before July 1, 2025, will be subject to a 3.3125% tax. ZEVs are defined as vehicles that meet California Air Resources Board zero emission standards for that model year. For a list of qualified ZEVs, see the New Jersey Department of the Treasury ZEV Sales Tax Exemption website.

(Reference New Jersey Statutes 54:32B-8.55 and Assembly Bill 4702, 2024)

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