Sponsored by:
Senator LINDA R. GREENSTEIN
District 14 (Mercer and Middlesex)
SYNOPSIS
Provides corporation business tax credit and allows gross income tax deduction for purchase and installation of electric vehicle charging stations.
CURRENT VERSION OF TEXT
As introduced.
An Act providing a corporation business tax credit and a gross income tax deduction for the purchase and installation of electric vehicle charging stations, and supplementing P.L.1945, c.162 (C.54:10A-1 et seq.) and Title 54A of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. (1) For the first privilege period beginning on or after the date of enactment 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) for the amount paid during the privilege period to purchase and install an electric vehicle charging station which is used directly and exclusively by the taxpayer in the taxpayer s business, trade, or occupation. The credit allowed pursuant to this paragraph shall be 25 percent of the amount paid to purchase and install an electric vehicle charging station, up to $500.
(2) For the second privilege period beginning on or after the date of enactment 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) for the amount paid during the privilege period to purchase and install an electric vehicle charging station which is used directly and exclusively by the taxpayer in the taxpayer s business, trade, or occupation. The credit allowed pursuant to this paragraph shall be 15 percent of the amount paid to purchase and install an electric vehicle charging station, up to $300.
(3) For the third privilege period beginning on or after the date of enactment 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) for the amount paid during the privilege period to purchase and install an electric vehicle charging station which is used directly and exclusively by the taxpayer in the taxpayer s business, trade, or occupation. The credit allowed pursuant to this paragraph shall be eight percent of the amount paid to purchase and install an electric vehicle charging station, up to $150.
b. (1) To qualify for the tax credit allowed pursuant to this section, the taxpayer shall file an application for a certification from the Commissioner of Environmental Protection that the electric vehicle charging station purchased by the taxpayer qualifies for the tax credit provided by this section, and is used directly and exclusively by the taxpayer in that taxpayer s business, trade, or occupation. The certification shall specifically indicate the date of purchase of the charging station, a description of the vehicles to use the charging station, a description of how the charging station is used in the taxpayer s business, trade, or occupation, the amount paid for the charging station, and proof of completed installation of the charging station. The commissioner shall prescribe the form for the application and certification.
(2) The Commissioner of Environmental Protection shall have 90 days from the date of receipt of a complete application to make a determination as to the issuance of a certification.
(3) Upon certification, the Commissioner of Environmental Protection shall submit a copy thereof to the taxpayer and the director. In 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. No credit shall be allowed pursuant to this section for an electric vehicle charging station purchased and installed after the conclusion of the first three privilege periods following the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill).
d. 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, when taken together with any other credits allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162, shall not exceed 50% of the tax liability otherwise due and 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. The priority in which credits allowed pursuant to this section and any other credits shall be taken shall be as determined by the Director of the Division of Taxation. The amount of the credit otherwise allowable under this section which cannot be applied for the privilege period due to the limitations of this subsection or under other provisions of P.L.1945, c.162 may be carried over, if necessary, to the seven privilege periods following the privilege period for which the credit was allowed.
e. As used in this section:
Electric vehicle charging station or charging station means an electric recharging point complete with electric vehicle supply equipment that is capable of providing level 2 charging or level 3 charging for plug-in electric vehicles.
Level 2 charging means an onboard charging system providing a 240 volt alternate current electricity to a plug-in electric vehicle in a single phase with a maximum current specified at 32 continuous amps with a branch circuit breaker rated at 40 amps and a maximum continuous input power specified at 7.68 kilowatts.
Level 3 charging means an offboard charging system providing a 480 volt alternate current to a plug-in electric vehicle in a three-phase circuit.
Plug-in electric vehicle means an on-road motor vehicle that uses a battery to store the electrical energy to power the vehicle s motor and is charged or recharged from an external source of electricity by plugging the vehicle into an electric power source, such as an electric vehicle charging station.
2. a. (1) For the first taxable year beginning on or after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), a taxpayer shall be allowed to deduct from gross income 25 percent, up to $500, of the amount paid to purchase and install an electric vehicle charging station in that taxable year.
(2) For the second taxable year beginning on or after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), a taxpayer shall be allowed to deduct from gross income 15 percent, up to $300, of the amount paid to purchase and install an electric vehicle charging station in that taxable year.
(3) For the third taxable year beginning on or after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), a taxpayer shall be allowed to deduct from gross income eight percent, up to $150, of the amount paid to purchase and install an electric vehicle charging station in that taxable year.
b. No deduction shall be allowed pursuant to this section for the purchase and installation of an electric vehicle charging station purchased and installed after the conclusion of the first three taxable years beginning on or after the date of enactment of P.L. , c. (C. ) (pending before