Your complete guide to New Jersey EV tax credits and rebates in 2025

If you've been eyeing an electric vehicle but the price tag has you hesitating, New Jersey might just change your mind. The Garden State offers some of the most generous EV incentives on the East Coast—we're talking up to $4,000 off your EV purchase and another $250 toward a home charger. 

It's worth noting that some of these incentives have time limits. The home EV charging credit expires in July 2026, and New Jersey's own programs have annual funding limits. If you're considering making the switch to electric, understanding these programs can help you plan your purchase timing.

We'll walk you through everything New Jersey offers to make EVs more affordable, from point-of-sale rebates to utility company incentives. Plus, we'll show you how pairing your EV with solar panels can further reduce your transportation costs.

New Jersey residents can still claim the federal home EV charger incentive, but the clock is ticking. President Trump signed HR1 into law on July 4, 2025, dramatically shortening the timeline for EV credits. The EV tax credits were supposed to be available through the decade, and the home charging credit was set to last until 2032.

As of October 1, 2025, the $7,500 federal tax credit for new electric vehicles and the $4,000 credit for used electric vehicles are no longer available.

For home charging, the Alternative Fuel Vehicle Refueling Property Credit provides up to $1,000 for EV charger installations. This covers 30% of installation costs (capped at $1,000) and is available for installations through June 30, 2026, giving you more time than the vehicle credits.

Remember, this is a tax credit, not a rebate—it reduces your federal tax bill dollar-for-dollar. You'll just need enough tax liability to take advantage of it.

New Jersey takes clean transportation seriously. By adopting the Advanced Clean Cars II Rule in 2023, it established gradual electric vehicle adoption targets that will eventually lead to internal combustion engine (ICE) vehicle sales being phased out in 2035. To help residents make the switch, the state offers several compelling incentives that put money back in their pockets.

New Jersey's approach combines immediate point-of-sale discounts with additional perks like HOV lane access and toll discounts. Unlike some states that only offer tax credits, New Jersey's Charge Up program provides instant rebates that reduce your purchase price at the dealership.

Charge Up New Jersey: Up to $4,000 off your EV

The Charge Up New Jersey program offers incentives of up to $4,000 for the purchase or lease of new, eligible battery electric vehicles, making it one of the most valuable state EV incentives in the country.

Here's how it breaks down:

• Charge Up incentive: $1,500 to eligible New Jersey residents for the purchase or lease of a new eligible EV

• Charge Up+ incentive: An additional $2,500 for income-qualifying applicants, for a total incentive of $4,000

The best part? Residents can take advantage of the Charge Up New Jersey incentive directly at the car dealership or showroom to apply the incentive instantly to their purchase or lease at the point-of-sale. No waiting for a check in the mail—the discount comes off your price immediately.

Eligibility requirements:

• Must be a New Jersey resident with a valid license

• Vehicle must have an MSRP under $55,000 for the full rebate

• Must purchase or lease from a participating New Jersey dealership

• Vehicle must remain registered in New Jersey for at least 36 months

Income limits for Charge Up+: The enhanced $4,000 rebate is available to households earning up to specific income thresholds. Charge Up+ applicants must prequalify prior to speaking with an eligible dealership. Prequalification is not instantaneous and can take up to 10 business days to process.

HOV lane access and toll discounts

Electric vehicle perks in New Jersey extend beyond purchase incentives. The New Jersey Turnpike Authority allows qualified plug-in, hybrid electric, and all-electric vehicles to travel in HOV lanes located between Interchange 11 and Interchange 14 on the New Jersey Turnpike. That means you can skip traffic during rush hour, regardless of whether you have passengers.

The state also offers a Green Pass Discount that provides 10% off‑peak EZ‑Pass rates on the Turnpike and Garden State Parkway for drivers of qualifying low-emission vehicles. While this might only save you about $0.45 each way, if you're a daily commuter, those savings add up to over $200 annually.

Charge Up New Jersey charger rebate

Homeowners in New Jersey can receive a $250 rebate for the purchase and installation of an eligible Level 2 EV charger, as part of a $3 million program for in-home EV charging approved by the NJ Board of Public Utilities. The rebate applies to specific Level 2 smart chargers, so make sure your chosen charger is on the eligible equipment list before purchasing.

Utility-specific charger rebates

Your utility company likely offers additional incentives on top of the state program. Here's what the major New Jersey utilities provide:

• Atlantic City Electric (ACE): Rebates worth up to $1,000 for residential customers who install new Level 2 EV chargers

• Jersey Central Power & Light (JCP&L): Up to $7,000 in incentives to eligible customers for property preparation for EV charger installation. This includes up to $1,500 for customer electrical upgrades and up to $5,500 for utility upgrades.

• PSE&G: Up to $1,500 as a bill credit for installing a residential EV charger, plus up to $5,000 for utility-side upgrades if needed

• Rockland Electric Company: Up to $1,000 for customer-based costs and an additional $5,000 for utility-based costs

New Jersey electrical panel upgrade incentives

Most EV chargers require a 240-volt circuit, and older New Jersey homes—especially those built before 1990—often need electrical panel upgrades to handle the additional load safely. These homes typically have 100-amp electrical panels that struggle with modern electrical demands, let alone adding a 40-amp EV charger.

The federal Energy Efficient Home Improvement Tax Credit covers up to 30% of electrical panel upgrade costs (capped at $600) when the upgrade supports EV charging, but this credit ends for work completed after December 31, 2025.

Before installing an EV charger, have a qualified electrician assess your electrical panel's capacity. Many utility rebate programs require this assessment anyway, and it ensures your home can safely handle the additional electrical load.

Time-of-use rates and smart charging incentives

Smart EV owners charge during off-peak hours to maximize savings. New Jersey utilities offer special rates that can cut your charging costs significantly:

• Atlantic City Electric: Earn $0.02 per kWh plus any associated sales and use tax (SUT) for any net off-peak charging. Off-peak hours are 8 PM to 8 AM EST, Monday-Friday.

• Jersey Central Power & Light: $0.02/kWh net off-peak charging credit for customers who install a program-qualified Level 2 EV charger

• PSE&G: Approximately $0.105/kWh credit for off-peak charging (9 PM to 7 AM EST Monday–Friday, and all day weekends)

• Rockland Electric Company: Approximately $0.04235/kWh during off-peak periods (8 PM to 12 PM EST Monday–Friday, and all day weekends)

According to data from the Alternative Fuels Data Center, New Jersey has approximately 1,659 public charging stations statewide as of September 2025, including 5,205 public charging ports. Of those publicly available chargers, 3,453 are Level 2 stations and 1,752 are DC fast chargers.

Where to find public charging stations

Jersey City leads with about 49 charging stations, followed by Newark with 48, Mahwah with about 41, and Paramus with 39. 

The state is rapidly expanding this network. With over $22 million in NEVI funding awarded to the state for 2024, you will see more EV charging stations in New Jersey in the near future. The state also plans to add over 200 stations to electrify its main highways and has distributed a combined $12 million in grants to fund EV charging projects at tourist destinations, for non-profit fleets, and at multifamily properties.

Public charging costs

Public charging costs vary significantly across the state. In Jersey City, some operators offer free Level 2 charging, while DC Fast Charging costs about $0.49 per kWh. Hoboken's partnership with charging operators provides both free Level 2 options and $1-per-hour paid charging. In fact, you can find free public charging throughout much of New Jersey, though availability is limited.

However, costs can be much higher elsewhere—in Camden County, you might pay up to $2.50 per hour for Level 2 charging.

New Jersey makes going electric financially attractive. Between state rebates, utility incentives, and charging programs, you could save thousands on your transition to electric transportation.

The timing is worth considering. Historically, Charge Up New Jersey begins taking applications in July and funding typically runs out in November. 

Ready to explore your options? Start by researching eligible vehicles and calculating your potential savings. And if you're serious about maximizing your clean energy investment, consider how solar panels could power your EV for essentially free—creating a complete clean energy ecosystem for your home and transportation needs.