Department of Environmental Protection

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Air Quality, Energy & Sustainability

Drive Green

Incentives To Drive Green

There are many different state and federal incentives to make the transition easier.

State Incentives


Charge Up New Jersey: Rebates for Electric Vehicle Purchase or Lease

Receive an incentive up to $5,000 when you purchase or lease a new electric vehicle in New Jersey. Save on a new car with the most generous electric vehicle rebate in the country.




Zero Emission Vehicle (ZEV) Tax Exemption

Zero Emission Vehicles are exempt from the NJ state sales tax, so you'll save 6.625% on the sale, lease or rental of a new or used battery electric vehicle (also known as all-electric vehicle). This exemption does not apply to plug-in hybrid electric vehicles.




It Pay$ to Plug In: NJ's Electric Vehicle Charging Grants Program

Grants to offset the cost to purchase and install electric vehicle charging stations. Eligible locations include public parking lots and garages, apartments and condominiums, workplaces, hotels, retail, downtown areas, rest stops, and more.




Diesel Vehicle and Equipment Electrification Grants

Grants to replace old diesel trucks, buses, port equipment, marine vessels, and trains with electric power and to offset the cost of associated charging infrastructure.




eMobility: Grants for Electric Car-sharing and Ride-hailing Services

Grants for electric shared mobility project such as electric car sharing and ride hailing. Projects that benefit low- or moderate-income communities that are disproportionately impacted by air pollution will be prioritized.




Clean Fleet Electric Vehicle Incentive Program: Funding for State and Local Government Authorities

Grants to help state and local governments transition to electrically fueled fleets. Eligible applicants (which include state agencies, counties, municipalities, and local utility authorities in New Jersey) can receive reimbursement of $4,000 per vehicle for up to two (2) battery electric vehicles and $1,500 for one (1) electric vehicle charging station.




EZ Pass Green Pass Discount on Garden State Parkway and New Jersey Turnpike Tolls

Electric vehicles are qualified to receive reduced toll rates via the Green Pass Discount through their EZ Pass accounts: 10% discount on the off-peak rate for the New Jersey Turnpike and Garden State Parkway. Customers must enroll in the plan and provide proof of eligibility. To apply, call New Jersey E-ZPass at 1-888-AUTOTOLL (1-888-288-6865)




HOV Lane Access

High-occupancy vehicle lanes, or HOV lanes, are located on sections of the New Jersey Turnpike and are set aside during peak travel times for vehicles carrying three or more people. Electric vehicles can drive in the HOV lanes, regardless of the number of passengers in the vehicle. Click the link for details and restrictions.




Overview of State Incentives

Summary of all current New Jersey electric vehicle incentives and funding opportunities, plus relevant laws, regulations, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality.




Federal Incentives


Plug-in Electric Drive Vehicle Credit

Federal income tax credit of up to $7,500 for eligible all-electric and plug-in hybrid cars purchased new in or after 2010. The credit amount will vary based on the capacity of the battery used to power the vehicle.




Alternative Fuel Vehicle Refueling Property Credit

If your home or business has an electric vehicle charging station that is in use, or if it is equipped to supply fuel for alternative fuel vehicles, you may be eligible for a federal income tax credit.




Alternative Motor Vehicle Credit

Individuals who purchased an eligible fuel cell vehicle may be entitled to this federal income tax credit if they meet all of the requirements.



Calculators help you determine the total cost of ownership for an electric vehicle using your specific scenario. Not everyone has the same electricity rate, and not everyone will choose the same vehicle.

Explore a viable options

Can I afford it?

Download NJDEP EV Calculator We all live on a budget. Discover the prospect of a brand new electric vehicle is within of your reach. With our EXCEL EV Calculator, you can see just what it would cost based on your personal expenses.
It Pay$ To Plug In: NJ’s Electric Vehicle Charging Grants Program

It Pay$ to Plug In

It Pay$ to Plug In provides grants to offset the cost of purchasing and installing electric vehicle charging stations. The program is designed to expand New Jersey’s growing network of electric vehicle infrastructure, allowing residents, businesses, and government agencies to purchase and drive electric vehicles. EVs dramatically reduce vehicle emissions and improve air quality for everyone.

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Affordability

The sticker price on a new electric vehicle may seem a deterent. Fortunately, there are many different federal and state incentives to make the transition easier.

PHEVs and EVs can reduce fuel costs dramatically because of the high efficiency of electric-drive components. Because PHEVs and EVs rely in whole or part on electric power, their fuel economy is measured differently than that of conventional vehicles. Miles per gallon of gasoline equivalent (mpge) and kilowatt-hours (kWh) per 100 miles are common metrics. Depending on how they're driven, today's light-duty EVs (or PHEVs in electric mode) can exceed 100 mpge and can drive 100 miles consuming only 25-40 kWh.

The fuel economy of medium- and heavy-duty PHEVs and EVs is highly dependent on the load carried and the duty cycle, but in the right applications, they can maintain a strong fuel-cost advantage over their conventional counterparts.

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