Provides gross income tax credits to taxpayers who purchase certain low-speed electric bicycles.

A1595

ASSEMBLY, No. 1595

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman SEAN T. KEAN

District 30 (Monmouth and Ocean)

SYNOPSIS

���� Provides gross income tax credits to taxpayers who
purchase certain low-speed electric bicycles.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
providing gross income tax credits to taxpayers who
purchase certain low-speed electric bicycles and supplementing Title 54A of the
New Jersey Statutes.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� a.� A taxpayer shall be
allowed a credit against the tax otherwise due for the taxable year under the
"New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an
amount equal to 30 percent of the qualified electric bicycle purchase expenses
incurred by the taxpayer during the taxable year, except that the credit shall
not exceed $1,500.

���� b.��� The order of priority of
the application of the credit allowed pursuant to this section, and any other
credits allowed against the tax imposed pursuant to N.J.S.54A:1-1 et seq.,
shall be as prescribed by the director.� The amount of the credit, together
with any other credits allowed by law, shall not reduce the taxpayer�s
liability otherwise due for the taxable year under N.J.S.54A:1-1 et seq. to an
amount less than zero.

���� c.���� Notwithstanding any
provision of the �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et
seq.) to the contrary, the director may adopt, immediately upon filing with the
Office of Administrative Law and no later than the 90th day after the effective
date of this act, such rules and regulations as the director deems necessary to
implement the provisions of this section, which regulations shall be effective
for a period not to exceed 18 months.� The regulations shall thereafter be
amended, adopted, or readopted by the director in accordance with the
provisions of P.L.1968, c.410 (C.52:14B-1 et seq.).

���� d.��� As used in this section:

���� �Low-speed electric bicycle�
means the same as that term is defined in R.S.39:1-1.

���� �Qualified electric bicycle
purchase expense� means an amount incurred for the purchase of a low-speed
electric bicycle, provided that the low-speed electric bicycle shall not be
used in the conduct of business, and the receipt from the purchase of the low-speed
electric bicycle shall not exceed $8,000.

���� 2.��� This act shall take
effect immediately and apply to taxable years beginning on or after the date of
enactment.

STATEMENT

���� This bill provides gross
income tax credits to taxpayers who purchase certain low-speed electric
bicycles.

���� Under the bill, the amount of
the credit would equal 30 percent of the costs incurred by a taxpayer for the
purchase of a qualifying low-speed electric bicycle, up to a maximum credit of
$1,500 for the taxable year.� In addition, the amount of the credit, together
with any other tax credits allowed by law, may not reduce the taxpayer�s gross
income tax liability to an amount less than zero.� To qualify for the credit,
the taxpayer may not use the low-speed electric bicycle for business purposes,
and the bicycle may cost no more than $8,000 to purchase.

���� The bill defines �low-speed
electric bicycle� to mean a two or three-wheeled vehicle with fully operable
pedals, an electric motor of less than 750 watts, and that meets the
requirements of a �class 1 low-speed electric bicycle� (i.e., a low-speed
electric bicycle equipped with a motor that provides assistance only when the
rider is pedaling, and that ceases to provide assistance when the bicycle
reaches the speed of 20 miles per hour) or a �class 2 low-speed electric
bicycle� (i.e., a low-speed electric bicycle equipped with a motor that may be
used exclusively to propel the bicycle, and that is not capable of providing
assistance when the bicycle reaches the speed of 20 miles per hour).