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Bill

A 1039

Provides corporation business tax credit and gross income tax credits for purchase and installation of certain electric vehicle charging stations.

2026-2027 Regular Session Introduced by Wayne DeAngelo and 1 co-sponsor

The bill offers tiered tax credits for purchasing and installing EV charging stations in New Jersey, capped per station and claimable under CBT and GIT, with DEP certification.

Introduced, Referred to Assembly Commerce and Economic Development Committee
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WeVote Research Nonpartisan
Bill Summary · A 1039

Summary of Assembly Bill A-1039 (NJ, 222nd Legislature)

This bill provides tax credits at both the Corporation Business Tax (CBT) and Gross Income Tax (GIT) levels for the purchase and installation of electric vehicle (EV) charging stations, with credits phased in over three calendar years (2014–2016). It requires certification from the Department of Environmental Protection (DEP) and places limits and ordering rules on how credits interact with other tax liabilities.

Purpose and Intent

  • To encourage the purchase and installation of EV charging stations by businesses and individuals.
  • To provide layered incentives (CBT and GIT credits) for EV charging infrastructure that is used directly and exclusively in the taxpayer’s business activities, and for charging stations used more broadly.

Key Provisions and Changes

  • Eligible Credits (CBT):
    • 2014 privilege period: 25% of the amount paid to purchase and install an EV charging station, up to $500 per station.
    • 2015 privilege period: 15% of the amount paid, up to $300 per station.
    • 2016 privilege period: 8% of the amount paid, up to $150 per station.
  • Eligible Credits (GIT):
    • Mirrors CBT percentages and caps for taxable years beginning in 2014 ($500 cap), 2015 ($300 cap), and 2016 ($150 cap) per station.
    • Married individuals filing separately may claim up to half of the per-station caps.
  • Certification Requirement:
    • A taxpayer must obtain certification from the Commissioner of Environmental Protection (CEP) confirming the charging station qualifies as an EV charging station.
    • Certification details to be provided: purchase date, description of vehicles to be served, amount paid, and proof of completed installation.
    • CEP has 90 days to issue certification after a complete application.
    • Certification must be attached to the tax return claiming the credit.
  • Allocation and Limitations:
    • The total credits claimed in a privilege year may not exceed 50% of the tax liability for that year.
    • Credits cannot reduce tax liability below the statutory minimum.
    • Any unused credit can be carried forward to up to seven privilege periods following the period in which the credit was allowed.
  • Definitions:
    • “Electric vehicle charging station” includes Level 2 (240V AC, up to 7.68 kW) and Level 3 charging capabilities.
    • “Plug-in electric vehicle” defined as a vehicle powered by a battery and charged via an external charging source.
  • Eligibility Scope:
    • Credits apply to charging stations purchased and installed for use directly and exclusively in the taxpayer’s business, trade, or occupation (for the CBT/GIT credits).
    • The bill also mentions eligibility for charging stations where the station is not required to be for business use, under the GIT credit (as reflected in the statement), but the primary text emphasizes business-use qualification.

Who Is Affected

  • Taxpayers subject to New Jersey CBT (title 54A?) and New Jersey Gross Income Tax.
  • Businesses and individuals purchasing and installing EV charging stations in New Jersey during 2014–2016 (with full or partial credits depending on year).
  • Partnerships and S Corporations: credits flow through to partners or S-corp shareholders in proportion to income or distributive shares.
  • DEP and taxpayers: DEP certification process is a prerequisite for claiming credits.

Procedural and Timeline Aspects

  • Effective period: Credits are available for charging stations purchased/installed in calendar years 2014, 2015, and 2016.
  • Certification timeline: DEP has 90 days to issue certification after receiving a complete application.
  • Interaction with other credits: The bill establishes a 50% cap of tax liability for credits in a given privilege period and allows unused credit to be carried forward up to seven periods.
  • Immediate take effect: The bill states it shall take effect immediately upon enactment.

Practical Considerations

  • The tiered credit structure (25%/15%/8% with decreasing caps) creates an incentive gradient aligned with the earlier adoption of EV infrastructure.
  • The certification process adds a verification step to ensure credits are tied to qualified EV charging stations.
  • Caps and carry-forward provisions affect the total potential tax benefit and planning for businesses with significant charging infrastructure investments.
  • The dual structure (CBT and GIT) provides parallel avenues for tax savings, potentially maximizing the benefit depending on a taxpayer’s tax situation.

If you’d like, I can convert this into a one-page fact sheet or compare with current NJ tax credit programs for EV infrastructure.

Compiled from official sources — confirm details with the bill’s official record.

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