$5,000 rebate for buying or leasing an EV in N.J. is in effect now, official announces

SOLAR CHARGING: I often draw the energy to charge my Tesla Model S from the 60-plus solar panels on the roof of my home. I bought a used 2016 Model S 75D (all-wheel drive) from Tesla last November, below, to replace my first Tesla, a Model S 60, above.

FIRST WASH: My Tesla Model S 75D at Always Clean Detailing Services in Fair Lawn, N.J.

All-electric cars, plug-in hybrids must have MSRP below $55,000

Editor's note: The first rebate program ended in December 2020, but a new program is set to launch on July 1, 2021. See the news release in the Comments section below.

By VICTOR E. SASSON
EDITOR

HACKENSACK, N.J. -- Governor Murphy made it official today, announcing that the electric-vehicle incentive law he signed on Jan. 17 became effective that day.

There was lots of confusion about the vehicles covered and whether the rebates would go to buyers as well as those who lease, thanks to sloppy news media coverage.

Some reports suggested the law wouldn't go into effect for 3 months.

Today, the governor announced that plug-in gas-electric hybrids, as well as all-electric cars, are covered, whether you buy or lease.

The MSRP must be below $55,000, and the rebate is figured based on the EPA-rated electric-only range -- $25 per mile -- up to a maximum of $5,000 per vehicle.

Electric cars from Tesla, Chevrolet, Nissan, Hyundai, Kia and other manufacturers cost less than $55,000 and qualify. 

"A fully electric car with 200 miles of range will qualify for a $5,000 rebate," Murphy said. "A hybrid electric car with 20 miles of electric range will qualify for a $500 rebate."

The New Jersey incentive is especially welcome after the expiration of the $7,500 federal tax credit when a company has sold more than 200,000 of a certain model.

In December, Tesla's website listed EV incentives in other states, and all of them are lower than New Jersey's rebate:

• California offers a $2,500 state rebate, and PG&E offers an additional $800 rebate for applications submitted on or after January 1, 2019.
• Connecticut customers are eligible for a $2,000 rebate for new Model 3 RWD vehicles, as well as exemption from state emissions testing and a reduced vehicle registration fee.
• Massachusetts offers rebates up to $2,500 for new EV purchases.
• New York offers rebates up to $2,000.
• Colorado offers tax credits up to $5,000.
• Pennsylvania offers rebates up to $1,750.

Read: Governor's statement
 on electric vehicle rebates