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A1867
ASSEMBLY, No. 1867
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman JAMES J. KENNEDY
District 22 (Somerset and Union)
Assemblyman CLINTON CALABRESE
District 36 (Bergen and Passaic)
SYNOPSIS
���� Provides corporation business tax and gross income
tax credits for purchase and installation of electric vehicle charging stations
and for commercial zero emission vehicle fleet conversions.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
providing corporation business tax and gross income tax
credits for the purchase and installation of electric vehicle charging stations
and for commercial zero emission vehicle fleet conversions, and supplementing
P.L.1945, c.162 (C.54:10A-1 et seq.) and Title 54A of the New Jersey Statutes.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� a.� For privilege
periods beginning on or after January 1 next following the effective date of
P.L.��� , c.�� (C.���� ) (pending before the Legislature as this bill), and
ending on or before December 31 of the fifth year following the effective date
of P.L.��� , c.�� (C.���� ) (pending before the Legislature as this bill), a
taxpayer shall be allowed a credit against the tax imposed pursuant to section
5 of P.L.1945, c.162 (C.54:10A-5) equal to:
���� (1)�� 50 percent of the amount
paid during the privilege period towards the purchase and installation of an
electric vehicle charging station that is used directly and exclusively by the
taxpayer in the taxpayer�s business, trade, or occupation, or $1,000 per station,
whichever amount is less; and
���� (2)�� 50 percent of the
difference between the amount paid during the privilege period towards the
purchase of a qualified commercial zero emission vehicle and the amount that
would have been paid for a comparable conventionally fueled vehicle, except
that the credit shall not 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.
���� b.��� (1)� To qualify for the
tax credits allowed pursuant to this section, the taxpayer shall file an
application for a certification from the Commissioner of Environmental
Protection.� The application for certification shall specifically indicate the
date of purchase of the electric vehicle charging station or qualified
commercial zero emission vehicle, the amount paid for the electric vehicle
charging station or qualified commercial zero emission vehicle, and, when
applicable, proof of completed installation of the charging station.� The
commissioner shall prescribe the form for the application and certification.�
The commissioner shall also provide a list of comparable conventionally fueled
vehicles for determining the amount of the credit allowed pursuant to paragraph
(2) of subsection a. of this section.
���� (2)�� The Commissioner of
Environmental Protection shall have 90 days from the date of receipt of a
completed application to make a determination as to the issuance of a
certification.
���� (3)�� Upon certification, the
Commissioner of Environmental Protection shall submit a copy of the
certification to the taxpayer and the director.� When filing a tax return that
includes a claim for the credit allowed pursuant to this section, the taxpayer
shall include a copy of the certification.
���� c.���� The director shall
prescribe the order of priority of the application of the credit allowed under
this section and any other credits allowed by law against the tax imposed under
section 5 of P.L.1945, c.162 (C.54:10A-5). �The amount of the credit applied
under this section against the tax imposed pursuant to section 5 of P.L.1945,
c.162 (C.54:10A-5) for a privilege period, together with any other credits
allowed by law, shall not reduce the tax liability to an amount less than the
statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162
(C.54:10A-5).� The amount of the tax credits otherwise allowable under this
section that cannot be applied for the privilege period may be carried forward,
if necessary, to the seven privilege periods following the privilege period for
which the tax credit was allowed.
���� d.��� As used in this section:
���� �Electric vehicle charging
station� means a station that is designed in compliance with the State Uniform
Construction Code, adopted pursuant to P.L.1975, c.217 (C.52:27D-119 et seq.),
that delivers electricity from a source outside an electric vehicle into one or
more electric vehicles, and that is capable of providing, at a minimum, Level 2
charging. �An electric vehicle charging station may include several charge
points simultaneously connecting several electric vehicles to the station and
any related equipment needed to facilitate charging plug-in electric vehicles.
���� �Qualified commercial zero
emission vehicle� means a vehicle certified as a zero emission vehicle pursuant
to the California Air Resources Board zero emission vehicle standards for the
applicable model year and is used to transport commodities, merchandise,
produce, refuse, freight, animals, or passengers as part a taxpayer�s business,
trade, or occupation, but shall not include an advanced technology partial zero
emission vehicle or a partial zero emission vehicle.
���� 2.��� a.� For the taxable year
beginning on January 1 next following the effective date of P.L.��� , c.��
(C.���� ) (pending before the Legislature as this bill), and for the four
taxable years thereafter, 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. equal to:
���� (1)�� 50 percent of the amount
paid during the taxable year towards the purchase and installation of an
electric vehicle charging station that is used directly and exclusively by the
taxpayer in the taxpayer�s business, trade, or occupation, or at the taxpayer�s
primary residence in this State, or $1,000 per station, whichever amount is
less; and
���� (2)�� 50 percent of the
difference between the amount paid during the taxable year towards the purchase
of a qualified commercial zero emission vehicle and the amount that would have
been paid for a comparable conventionally fueled vehicle, except that the
credit shall not 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.
���� b.��� (1)� To qualify for the
tax credits allowed pursuant to this section, the taxpayer shall file an
application for a certification from the Commissioner of Environmental
Protection.� The application for certification shall specifically indicate the
date of purchase of the electric vehicle charging station or qualified
commercial zero emission vehicle, the amount paid for the electric vehicle
charging station or qualified commercial zero emission vehicle, and, when
applicable, proof of completed installation of the charging station.� The
commissioner shall prescribe the form for the application and certification.�
The commissioner shall also provide a list of comparable conventionally fueled
vehicles for determining the amount of the credit allowed pursuant to paragraph
(2) of subsection a. of this section.
���� (2)�� The Commissioner of
Environmental Protection shall have 90 days from the date of receipt of a
completed application to make a determination as to the issuance of a
certification.
���� (3)�� Upon certification, the
Commissioner of Environmental Protection shall submit a copy of the
certification to the taxpayer and the director.� When filing a tax return that
includes a claim for the credit allowed pursuant to this section, the taxpayer
shall include a copy of the certification.
���� c.���� The order of priority
of the application of the credit allowed pursuant to this section and any other
credits allowed against the tax due pursuant to N.J.S.54A:1-1 et seq. for a
taxable year shall be as prescribed by the director.� The amount of the credit
applied against the tax due pursuant to N.J.S.54A:1-1 et seq. shall not reduce
a taxpayer's liability to an amount less than zero.� The amount of the tax
credits otherwise allowable under this section that cannot be applied for the taxable
year may be carried forward, if necessary, to the seven taxable years following
the taxable year for which the tax credit was allowed.
���� d.��� (1)� A business entity
that is classified as a partnership for federal income tax purposes shall not
be allowed a tax credit pursuant to this section directly, but the amount of
tax credit of a taxpayer in respect to the distributive share of entity income,
shall be determined by allocating to the taxpayer that proportion of the tax
credit acquired by the entity that is equal to the taxpayer's share, whether or
not distributed, of the total distributive income or gain of the entity for its
taxable year ending within or with the taxpayer's taxable year.
���� (2)�� A New Jersey S
Corporation shall not be allowed a tax credit pursuant to this section
directly, but the amount of the tax credit of a taxpayer in respect of a pro
rata share of S Corporation income, shall be determined by allocating to the
taxpayer that proportion of the tax credit acquired by the New Jersey S
Corporation that is equal to the taxpayer's share, whether or not distributed,
of the total pro rata share of S Corporation income of the New Jersey S
Corporation for its privilege period ending within or with the taxpayer's
taxable year.
���� e.���� As used in this
section:
���� �Electric vehicle charging
station� means a station that is designed in compliance with the State Uniform
Construction Code, adopted pursuant to P.L.1975, c.217 (C.52:27D-119 et seq.),
that delivers electricity from a source outside an electric vehicle into one or
more electric vehicles, and that is capable of providing, at a minimum, Level 2
charging. An electric vehicle charging station may include several charge
points simultaneously connecting several electric vehicles to the station and
any related equipment needed to facilitate charging plug-in electric vehicles.
���� �Qualified commercial zero
emission vehicle� means a vehicle certified as a zero emission vehicle pursuant
to the California Air Resources Board zero emission vehicle standards for the
applicable model year and is used to transport commodities, merchandise,
produce, refuse, freight, animals, or passengers as part a taxpayer�s business,
trade, or occupation, but shall not include an advanced technology partial zero
emission vehicle or a partial zero emission vehicle.
���� 3.��� Notwithstanding any
provision of the �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et
seq.) to the contrary, the Commissioner of Environmental Protection shall
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 commissioner deems necessary to implement the provisions of
P.L.��� , c.���� (pending before the Legislature as this bill), which
regulations shall be effective for a period not to exceed 18 months.� The
regulations shall thereafter be amended, adopted, or readopted by the commissioner
in accordance with the provisions of P.L.1968, c.410 (C.52:14B-1 et seq.).
���� 4.��� This act shall take
effect immediately.
STATEMENT
���� This bill provides corporation
business tax and gross income tax credits for the purchase and installation of
electric vehicle charging stations and for the purchase of commercial zero
emission vehicles.�
���� The first component of 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, or
at the taxpayer�s primary residence in this State.� 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.
���� The second component of the
credit is based on the difference in the amount paid by a taxpayer for a
qualified commercial zero emission vehicle compared to what the taxpayer would
have paid for a comparable conventionally fueled vehicle.� This credit is
capped at 50 percent of the difference between the amount paid during the privilege
period or taxable year towards the purchase of a qualified commercial zero
emission vehicle and the amount that would have been paid for a comparable
conventionally fueled vehicle, except that 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.
���� A taxpayer is required to
submit an application with the Commissioner of Environmental Protection, who is
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.
���� These tax credits are
non-refundable, but may be carried forward for seven years after the privilege
period or taxable year during which the credit are initially earned.� The
credit would be available for a five-year period commencing on January 1 next
following the effective date of the bill.