New Jersey

Zero Emissions Vehicle (ZEV) Tax Exemption

ZEVs sold, rented, or leased in New Jersey are exempt from state sales and use tax. This exemption is not applicable to partial zero emission vehicles, including hybrid electric vehicles. For a list of qualifying ZEVs, see the New Jersey Department of the Treasury Web site. (Reference New Jersey Statutes 54:32B-8.55)

Emissions Reduction Requirements

Recognizing the impact of carbon-emitting fuels on climate change and in order to foster economic growth in the state by spurring technological innovation, New Jersey has established greenhouse gas emissions (GHG) reduction targets. These targets include stabilization of GHG emissions to 1990 levels by the year 2020 and reduction of GHG emissions to 80% below 2006 levels by 2050. To reach this goal, the Director of Energy Savings in the Department of Treasury will develop specific targets and strategies for reducing GHG emissions by reducing the state motor fleet's fuel consumption. (Reference Executive Order 54, 2007)

Low Emission Vehicle (LEV) Sales Requirement

Beginning January 1, 2009, New Jersey will implement the California Low Emission Vehicle program. Upon implementation, the state will require automakers that sell vehicles in New Jersey to make at least 40,000 hybrid electric vehicles (HEVs) and 128,000 LEVs available for sale or lease for each model year. The Department of Environmental Protection will issue credits to manufacturers who have sold or leased HEVs and LEVs between 1999 and 2009. Reference New Jersey Statutes 26:2C-8.15 to 8.21).

Low Emissions or Alternative Fuel Bus Acquisition Requirement

Beginning July 1, 2007, all buses purchased by the New Jersey Transit Corporation 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 ultra low sulfur fuel or biodiesel, or vehicles operating on any other bus fuel approved by the U.S. Environmental Protection Agency. (Reference New Jersey Statutes 27:1B-22)