A newly introduced bill in the New Jersey Senate would provide a corporation business tax credit for the purchase and installation of electric vehicle charging stations and for the purchase of commercial zero emission vehicles. Senate Bill-429 was released unanimously from the New Jersey Senate Environment and Energy Committee on March 14.

For companies looking to install new charging stations, the credit is based on the amount a taxpayer pays to purchase and install an electric vehicle charging station at their business, trade, or occupation. The credit is capped at 50 percent of the amount paid towards the purchase and installation of the electric vehicle charging station during a privilege period or taxable year, or $1,000 per station, whichever amount is less.

Additionally, a business may also qualify for a credit based on the difference in the amount paid by a taxpayer for a qualified commercial zero emission vehicle, as compared to what the taxpayer would have paid for a comparable conventionally fueled vehicle. This credit would be capped at 50 percent of the difference between the qualified zero emission vehicle and the conventionally fueled vehicle during the privilege period or taxable year. The amount of the credit cannot exceed $25,000 if the qualified commercial zero emission vehicle weighs less than 14,000 pounds, $50,000 if the vehicle weighs 14,001 to 26,500 pounds, and $100,000 if the vehicle weighs more than 26,500 pounds.

The legislation would require a taxpayer to apply for the credit with the New Jersey Commissioner of Environmental Protection. The department would be responsible for certifying a taxpayer’s application for the credit and providing a copy of the certification to the taxpayer and the Division of Taxation in the Department of the Treasury.

In addition, the department would also be responsible for providing a list of comparable conventionally fueled vehicles for determining the amount of the credit allowed pursuant to the bill. While the tax credits are non-refundable, they may be carried forward for seven years after the privilege period or taxable year during which the credit are initially earned.

While the bill has not yet been heard in the State Assembly, ACA is monitoring the legislation’s progress.

Contact ACA’s Heidi McAuliffe for more information.