Electric car buyers can now apply to save $2K from N.J. income program

Thinking of cutting your emissions while you commute to work or take the kids to soccer?

New Jersey says it wants to make the price tag much more palatable.

On Tuesday, Gov. Phil Murphy and the state Board of Public Utilities announced the latest series of incentives as part of "Charge Up New Jersey," initially launched earlier this summer. Car buyers can once again save as much as $4,000 off their electric vehicle purchase and up to $250 for buying an eligible EV charger.

Federal incentives for zero emission drivers, as part of larger efforts to fight climate change, exist as well.

People buying electric vehicles — priced at $55,000 or less — can receive up to $2,000 off their purchase at the point of sale.

Another $2,000 is available as of this week for individuals who make less than $75,000, heads of household who make under $112,500, or entire households that make less than $150,000. Those income caps, meant to expand access to clean cars, were not in place in prior versions of the incentive program — now in its fifth year.

"Combined with the Charge Up base incentive and federal EV tax credit, this additional incentive will further expand the number of New Jersey families who can reap the environmental and economic benefits of clean transportation," Christine Guhl-Sadovy, Board of Public Utilities president, said in a statement.

The EValuateNJ dashboard , a collaboration between the New Jersey Department of Environmental Protection and business consultancy Atlas Public Policy, outlines that EVs — including battery electric vehicles and plug-in hybrid EVs — made up about 2.8% of the light-duty vehicles on the road as of June 2024.

The state is up to at least 185,458 registered EVs, the latest total from the NJDEP.

Officials said so far more than 37,000 EV incentives and more than 6,900 EV charger incentives have been approved through the state's program.

Murphy noted that incentives help ensure "every New Jerseyan can choose clean transportation, regardless of their income."

Some groups have cast doubt on New Jersey reaching 100% clean energy by 2035, and the related mandate that requires new cars sold starting that year to be all-zero emission vehicles.

Those requirements will be phased in beginning in two years. Used gas-powered cars could still be sold, based on the rule.

Besides worries about affordability, those opposed say installing chargers can be expensive, a lengthy process and impractical for some businesses and families.

Supporters of zero emission cars say the state is addressing that now and EVs will become more affordable in time.

Kelley Blue Book highlighted that the average price for an electric car was $56,575 as of August. Gas-powered vehicles on average cost $47,870, the price advisor said.

Charger access — namely many drivers still having "range anxiety" for fear of running out of juice on a trip — is another potential obstacle, critics say.

According to the state's tally, New Jersey has more than 3,600 charging ports. That total includes just 1,249 "fast chargers," the preferred docks that make charging at public stations less time-consuming.

Another potential challenge as more drivers consider going green while making their next car choice at dealerships includes New Jersey gradually removing a tax break previously in place for EVs.

Moreover, this summer the state began requiring an annual $250 registration fee for electric vehicle buyers — set to increase by $10 a year until reaching $290.

Even clean car advocates are scratching their heads at the new fee and limits on the rebates.

"There were three things that happened at exactly the wrong time when we really need to be putting our foot on the accelerator in terms of EV adoption," Pamela Frank, the chief executive officer of ChargEVC-NJ, said on the phone Thursday. Besides the fee and rebate caps, the third thing was the sales tax break phase out, she said.

The not-for-profit trade and research coalition — made up of climate advocates, non-profits, utilities and electric vehicle companies — says New Jersey can still meet the goal of 330,000 registered EVs in the state by 2025. But these obstacles may get in the way.

"Because we're now past people like me, the early adopters," Frank said. "We're now into middle market where you need to do more to get people to leap into this new technology."

The new EV fee, for one, is part of a larger strategy to fund road fixes in the Garden State, the state has reiterated.

"A notice of the new electric vehicle fee is being included with all vehicle registration renewal applications for New Jersey drivers," Jim Hooker, a spokesman for the New Jersey Motor Vehicle Commission, said this week.

If applicable, Hooker shared that the fee would be reflected in drivers' annual registration renewal.

To apply for an electric car incentive and learn more about the program visit chargeup.njcleanenergy.com .

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