What is a Zero Emission Vehicle (“ZEV”)? Where can a list of qualified ZEVs be found?
A “zero emission vehicle” means a vehicle certified as a zero emission vehicle according to the California Air Resources Board zero emission vehicle standards for the applicable model year.
The Commissioner of the New Jersey Department of Environmental Protection certifies a list of qualified ZEVs on their website. Visit the NJDEP website to view the certified list and other exemption information.
Are ZEVs subject to tax?
Under N.J.S.A. 54:32B-8.55, the Sales and Use Tax Act provides an exemption for the sale, rental, or lease of ZEVs, which are vehicles certified pursuant to the California Air Resources Board zero emission standards for the model year.
However, P.L. 2024, c. 19 repeals the Sales and Use Tax exemption on sales of zero emission vehicles (ZEVs). Beginning October 1, 2024, sales of ZEVs are subject to tax, and the exemption will be phased-out over nine months. The schedule for the phase-out is as follows:
| Period When Zero Emission Vehicles are Sold |
Tax Rate |
| On or after October 1, 2024 but before July 1, 2025 |
3.3125% |
| On or after July 1, 2025 |
6.625% |
For more information on motor vehicle purchases, leases, trade-ins, and discounts, see the New Jersey Consumer Automotive Tax Guide .
While the exemption period is still in effect, is an exemption certificate needed to purchase a ZEV without paying tax?
Yes. The purchaser must provide the seller a fully completed Exempt Use Certificate (Form ST-4) in order to document the exemption.
Is the maintenance, service, or repair of a ZEV subject to tax?
Yes. A charge to maintain, service, or repair a ZEV is subject to tax. For example, charges for oil changes, cleaning, repairs, etc. are subject to tax.
Is the purchase of repair or replacement parts for a ZEV subject to tax?
Yes. A charge for repair or replacement parts for a ZEV is subject to tax. For example, charges for a new battery, tire, etc. are subject to tax.
Do purchasers have to pay Sales Tax when charging a ZEV at a charging station?
Yes. The charging of a ZEV is considered a taxable maintenance or service to tangible personal property. This is the case whether or not the purchaser is charged a flat fee or if the purchaser is charged for exact usage via a meter.
Are labor charges for the installation of an electric vehicle charging station (Residential or Commercial) subject to tax?
If the electric vehicle charging station is permanently affixed to the real property, the installation results in an exempt capital improvement and is not subject to tax. The installer does not collect Sales Tax on the labor portion of the bill, provided the property owner issues the installer a fully completed Certificate of Exempt Capital Improvement (Form ST-8) to document the transaction.
However, a removable electric vehicle charging station does not qualify as a capital improvement to real property, and labor charges to install a removable electric vehicle charging station are subject to tax.
Is the maintenance, service, or repair of an electric vehicle charging station subject to tax?
Yes. A charge to maintain, service, or repair an electric vehicle charging station is taxed. For example, charges for cleaning, maintenance, etc. are subject to tax.
Are materials and supplies used for an electric vehicle charging station (Residential or Commercial) subject to tax?
Property owners must pay Sales Tax when purchasing tangible personal property (e.g., new wiring, new outlets, and charging receptacles) for an electric vehicle charging station.
Sales of materials and supplies to contractors are taxable because the contractor is considered the final consumer (or end-user) of these items. Thus, when a contractor performs work on the real property of a purchaser, he or she should not charge the purchaser Sales Tax on the cost of materials and supplies used for the job.
For more information, see publication S&U-3, Contractors and New Jersey Taxes .
Official Site of The State of New Jersey