Search Federal and State Laws and Incentives

Reduced Propane Fuel Tax

The tax imposed on propane used to operate a motor vehicle is equal to half the tax paid on the sale or use of gasoline, or $0.0525 per gallon. (Reference New Jersey Statutes 54:39-103)

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)

Idle Reduction Requirement

A gasoline-fueled motor vehicle is not allowed to operate for more than three consecutive minutes when the vehicle is not in motion, with the following exceptions: 1) a vehicle stopped in a line of traffic; 2) a vehicle being inspected by a state or federal motor vehicle inspector; 3) an emergency vehicle operating in an emergency situation; 4) a vehicle being repaired or serviced; 5) a vehicle whose primary or secondary power source is used for a mechanical operation other than propulsion; and 6) a vehicle parked in a non-residentially zoned area with a sleeper berth being used for sleeping or resting. A gasoline bus loading or unloading passengers may idle for 15 consecutive minutes in a 60-minute period.

A diesel-fueled motor vehicle is not allowed to operate for more than three consecutive minutes when the vehicle is not in motion. If the vehicle is not in a parking space equipped with idle reduction electrification technology, the following exceptions apply: 1) a vehicle stopped in a line of traffic; 2) a vehicle whose primary power source is used for a mechanical operation other than propulsion; 3) a vehicle being inspected by a state or federal motor vehicle inspector; 4) an emergency vehicle operating in an emergency situation; 5) a vehicle being repaired or serviced; 6) a vehicle with a sleeper berth that is equipped with a Model Year 2007 or newer engine and/or a functioning diesel particulate filter; and 7) a vehicle that uses a technology designed to reduce engine idling, such as auxiliary or alternate power units, generator sets, or bunk heaters. Additionally, diesel vehicles may idle for 15 consecutive minutes when the vehicle's engine has been stopped for at least three hours if the temperature is below 25 degrees Fahrenheit, and a diesel bus loading or unloading passengers may idle for 15 consecutive minutes in a 60-minute period. Violators will be issued fines.

(Reference New Jersey Administrative Code 7:27-14.3 through 7:27-14.10 and 7:27-15.8)

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)

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a four-wheeled vehicle that is capable of achieving speeds of up to 20 miles per hour (mph) but not more than 25 mph on a paved surface, is not powered by gas or diesel fuel, and complies with federal safety standards as noted in Title 49 of the U.S. Code of Federal Regulations, section 571.500. A low-speed vehicle may operate on roadways with posted speed of up to 25 mph, or up to 35 mph in a municipality or county that has received a special ordinance or resolution. Additional registration and other requirements apply. (Reference New Jersey Statutes 39:4-31.1 through 39:4-31.2)

Alternative Fuel Vehicle (AFV) Access to Tunnels

An AFV powered by propane or natural gas may only use Port Authority of New York & New Jersey (PANYNJ) tunnels and the lower level of the George Washington Bridge if the vehicle conforms to applicable federal regulations and industry standards, displays required markings to identify its alternative fuel system, and has a fuel capacity that does not exceed 150 pounds.

For more information, see the PANYNJ Trucker's Resources website and the South Jersey Transportation Authority Rules and Regulations website.

(Reference New Jersey Administrative Code 19:2-4.3)

Fuel Inefficient Vehicle Fee

New passenger vehicles meeting one of the following criteria are subject to an additional fee payable to the New Jersey Motor Vehicle Commission:

• A U.S. Environmental Protection Agency (EPA) average fuel efficiency economy rating of less than 19 miles per gallon (mpg); or
• A sales or lease price of $45,000 or more, prior to any credit or offset resulting from any rebate or trade-in.

(Reference New Jersey Statutes 39:3-8.4)

Clean Truck Replacement Program

The Port Authority of New York & New Jersey’s Truck Replacement Program (Program) provides funding for up to 50% of the cost to replace a heavily emitting truck or up to $25,000, whichever is less. Eligible recipients include independent owner operators and licensed motor carriers servicing the port with drayage trucks equipped with Model Year 1996 to 2003 engines. Funding is limited to two replacement trucks per eligible applicant. Additional rules and conditions apply. For more information, see the Program website.

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.

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.

Electric Vehicle Supply Equipment (EVSE) 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 EVSE installation. Reimbursement grants are offered on a first-come, first-served basis for the cost and installation of eligible EVSE 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.

Natural Gas Vehicle (NGV) Weight Exemption

A NGV may exceed the state's gross vehicle weight limits by a weight equal to the difference between the weight of the vehicle with the natural gas tank and fueling system and the weight of a comparable vehicle with a diesel tank and fueling system. The NGV maximum gross weight may not exceed 82,000 pounds. (Reference New Jersey Statutes 39:3-84.1)

Plug-In Electric Vehicle (PEV) and Electric Vehicle Supply Equipment (EVSE) Deployment Goals

The State of New Jersey will work to increase the number of PEVs 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 (DC) fast EVSE and 1,000 Level 2 EVSE installed and available for public use at minimally 200 locations. 75 locations must include at least two DC fast installed along travel corridors, while 100 locations must include at least two DC fast in community locations. Additionally, 15% of all multi-family residential properties must include EVSE infrastructure and 20% of all franchised overnight lodging must have EVSE available for guests.
• By December 31, 2035, there will be 2 million registered light-duty PEVs in the state, and 100% of state-owned, non-emergency light-duty vehicles must be PEVs.
• By December 31, 2040, 85% of all new light-duty vehicles sold in the state will be PEVs.

Plug-In Electric Vehicle (PEV) Rebate Program

The New Jersey Board of Public Utilities offers state residents a rebate in the amount of $25 per mile of EPA-rated all-electric range, up to $5,000, to purchase or lease a new PEV with an MSRP of $55,000 or less. Rebates may be limited to one award per person. For more information, and rebate availability, see New Jersey’s Clean Energy Program Electric Vehicle Incentive Programs website. (Reference New Jersey Statutes 48:25-4)

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 supply equipment (EVSE) throughout the state;
• Creating incentives for EVSE;
• 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.

Electric Vehicle Supply Equipment (EVSE) Policies for Condominiums

Condominium associations may not prohibit or restrict the installation or use of EVSE in a homeowner’s designated parking space. Condominium associations may put reasonable restrictions on EVSE, but the policies may not significantly increase the cost of the EVSE 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 EVSE or surrounding area. (Reference New Jersey Statutes 45:22A-43)

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, plug-in electric vehicles (PEVs) and hydrogen fuel cell vehicles. Infrastructure projects are encouraged to:

Plug-In Electric Vehicle (PEV) Parking Space Make-Ready Permitting Requirements

PEV 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 electric vehicle supply equipment (EVSE).

(Reference Senate Bill 3223, 2021)