According to the NJ Division Of Taxation, the Zero Emission Vehicles Sales Tax Exemption will be applicable through September 30th, 2024.
Any electric vehicle sold on or after October 1, 2024 but before July 1, 2025 will have a 3.3125% tax rate.
Any electric vehicle sold on or after July 1, 2025 will have a 6.625% tax rate.
If you are buying an electric vehicle before October 1st and want to make sure you get the sales tax exemption:
For new vehicles: Remind the dealership to complete an Exempt Use Certificate that you should keep a copy of. Make sure to cite N.J.S.A. 54:32B-8.55 as the statutory reference.
For used vehicles: The person you are buying the vehicle from should complete the Exempt Use Certificate citing the above reference. When you go to register your vehicle at the Motor Vehicle Commission, bring the Certificate. You will need to present it at that time to be exempt from paying sales tax.
If you have been charged sales tax on your EV purchase, rental, or lease, complete the Claim For Refund Form and submit to the Division of Taxation, Sales Tax Refund Section as described in the instructions on the form for a refund.
On The Other Hand, NJ Charge Up+ Coming Fall 2024
Income-qualifying applicants will be eligible for Charge Up+, which increases the Charge Up incentive from $2,000 to $4,000. Charge Up+ will be introduced in fall 2024.
To claim the Charge Up+ incentive, which raises the Charge Up incentive from $2,000 to $4,000, applicants must prequalify prior to the vehicle’s sale or lease. Applicants will be required to submit their most recent tax documentation verifying that their modified adjusted gross income (MAGI) meets the following requirements:
Maximum MAGI of $75,000 for single tax filers.
Maximum MAGI of $112,500 for head of household tax filers.
Maximum MAGI of $150,000 for joint tax filers.
Detailed information about eligibility, prequalification and the incentive claim process for Charge Up+ will be announced at a later date.
Additionally, Many Vehicles Qualify For A Federal Tax Credit Of Up To $7,500!
Click here to see which vehicles qualify for the $7,500 Tax Credit and what the eligibility requirements are.
So for example, if you are eligible for the refund regarding income requirements, the Tesla Model 3 Rear-Wheel drive, which is the cheapest model you can get right now is NOT eligible for the $7,500 Tax Credit.
The Tesla Model 3 Long Range Rear-wheel drive, which is more expensive than the basic model 3, IS eligible for the $7,500 Tax Credit, and will end up being cheaper once you get the credit!
Should You Buy An EV Now, Or Should You Wait Until The Charge Up+ Program Becomes Available In Fall 2024?
So the answer is it really depends on what you are buying.
Until July 2025, the NJ tax rate will only be 3.3125%. So If the car you are buying is approx. $41,000, like the Model 3 for example, the tax on that will be $1,358.12. So in that case, its worth it to wait for the Charge Up+ Program, where you will be saving an additional $2,000 on the vehicle.
However, if you are buying a 2024 Ford F-150 Lightning, which starts at $62,995, or any vehicle thats more expensive, its worth it to buy it now since the sales tax you are saving is more than $2,000.