New Jersey Electric Vehicle Tax Credit & Incentive Guide

Considering a Honda hybrid or electric vehicle to put in your Tinton Falls garage? Or maybe you’ve already purchased one recently, and it’s time to make your investment go further. Either way, you might be eligible to earn a New Jersey electric vehicle tax credit or incentive! 

Discover more about the available New Jersey electric vehicle and hybrid car tax credits and incentives. We’ll also discuss any federal incentives to make your purchase more tantalizing! Then, feel free to contact our finance team for more information. 

Charge Up New Jersey 

This is the incentive program to look into when purchasing a personal EV or hybrid car in Freehold. Earn up to $4,000 when you buy or lease a new, eligible zero-emission vehicle, including a battery electric and plug-in hybrid electric. As of April 17, 2023, funding has run out for fiscal year 2022-2023. 

All of the program requirements are as follows, and it might come back in future fiscal years: 

• Your vehicle must be purchased after July 25, 2022, for fiscal year 2022-2023.
• Purchase an eligible vehicle, like an electric or hybrid Honda at our dealership.
• The vehicle must be registered in your name in the State of New Jersey.
• Your name must be on the purchase or lease agreement.
• The purchase or lease agreement must be from a participating New Jersey dealership or showroom.
• You must provide proof of New Jersey residency by providing a state driver’s license.
• For active duty military members stationed in New Jersey but have permanent residency in another state. Military orders may get used as proof of residency.
• Your vehicle must be a new battery electric or plug-in hybrid electric vehicle.
• Your vehicle must have an MSRP of below $55,000.

To claim this New Jersey electric vehicle/hybrid car incentive, find an eligible model and an eligible dealer, then apply for this incentive at the point of sale with your dealer. Check eligibility on the Charge Up New Jersey site. 

Federal Incentives

On top of New Jersey EV incentives, you could qualify for federal incentives from the Internal Revenue Service. You could earn a $7,500 incentive from the federal government. 

To qualify, you must:

• Buy it for your own use, not for resale
• Use it primarily in the U.S.

In addition, your modified adjusted gross income (AGI) may not exceed:

• $300,000 for married couples filing jointly 
• $225,000 for heads of households
• $150,000 for all other filers

For vehicles placed in service on April 18, 2023, and after:

Vehicles will have to meet all of the same criteria listed above, plus meet new critical mineral and battery component requirements for a credit up to:

• $3,750 if the vehicle meets the critical minerals requirement only
• $3,750 if the vehicle meets the battery components requirement only
• $7,500 if the vehicle meets both

A vehicle that doesn’t meet either requirement will not be eligible for credit.

Qualified Vehicles

To qualify, a vehicle must:

• Have a battery capacity of at least 7-kilowatt hours
• Have a gross vehicle weight rating of fewer than 14,000 pounds
• Be made by a qualified manufacturer. 
• Undergo final assembly in North America
• Meet critical mineral and battery component requirements (as of April 18, 2023).

The sale qualifies only if:

• You buy the vehicle new
• The seller reports the required information to you at the time of sale and to the IRS.

In addition, the vehicle’s manufacturer suggested retail price (MSRP) can’t exceed:

• $80,000 for vans, sport utility vehicles, and pickup trucks
• $55,000 for other vehicles

Test Drive a New Honda EV Near Red Bank

Ready to get the most out of your EV purchase? Contact us or call 888-719-5868 to test drive a new EV. We’d love to put you behind the wheel of a new vehicle that fits your lifestyle, whether you’ve got your eye on a Honda Accord hybrid sedan or a Honda CR-V hybrid SUV.