Bill Text: NJ S1908 | 2022-2023 | Regular Session | Introduced
Bill Title: Provides corporation business tax credit and gross income tax credits for purchase and installation of certain electric vehicle charging stations.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2022-03-03 - Introduced in the Senate, Referred to Senate Environment and Energy Committee [S1908 Detail]
Download: New_Jersey-2022-S1908-Introduced.html
Sponsored by:
Senator NILSA I. CRUZ-PEREZ
District 5 (Camden and Gloucester)
SYNOPSIS
Provides corporation business tax credit and gross income tax credits for purchase and installation of certain electric vehicle charging stations.
CURRENT VERSION OF TEXT
As introduced.
An Act providing a corporation business tax credit and a gross income tax credit for the purchase and installation of certain electric vehicle charging stations, and supplementing P.L.1945, c.162 (C.54:10A-1 et seq.) and Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. (1) For the taxpayer's privilege period beginning in calendar year 2023, 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 per station.
(2) For the taxpayer's privilege period beginning in calendar year 2024, 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 per station.
(3) For the taxpayer's privilege period beginning in calendar year 2025, 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 per station.
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 charging station purchased by the taxpayer qualifies as an electric vehicle charging station. The application for certification shall specifically indicate the date of purchase of the electric vehicle charging station, a description of the vehicles to use the electric vehicle charging station, the amount paid for the electric vehicle 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. 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 percent 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.
d. As used in this section:
"Electric vehicle 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 taxpayer's taxable year beginning in calendar year 2023, a taxpayer shall be allowed a credit against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 25 percent, up to $500 per station, of the amount paid in that taxable year 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.
(2) For the taxpayer's taxable year beginning in calendar year 2024, a taxpayer shall be allowed a credit against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 15 percent, up to $300 per station, of the amount paid in that taxable year 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.
(3) For the taxpayer's taxable year beginning in calendar year 2025, a taxpayer shall be allowed a credit against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 8 percent, up to $150 per station, of the amount paid in that taxable year 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.
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 charging station purchased by the taxpayer qualifies as an electric vehicle charging station. The application for certification shall specifically indicate the date of purchase of the electric vehicle charging station, a description of the vehicles to use the electric vehicle charging station, the amount paid for the electric vehicle charging station, and proof of completed installation of the electric vehicle 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. A partnership shall not be allowed a credit under this section directly, but the amount of credit of a taxpayer in respect of a distributive share of partnership income under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., shall be determined by allocating to the taxpayer that proportion of the credit or certificate acquired by the partnership that is equal to the taxpayer's share, whether or not distributed, of the total distributive income or gain of the partnership for its taxable year ending within or with the taxpayer's taxable year.
d. A New Jersey S Corporation shall not be allowed a credit under this section directly, but the amount of credit of a taxpayer in respect of a pro rata share of S Corporation income under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., shall be determined by allocating to the taxpayer that proportion of the credit or certificate acquired by the New Jersey S Corporation that is equal to the taxpayer's share, whether or not distributed, of the total pro rata share of S Corporation income of the New Jersey S Corporation for its privilege period ending within or with the taxpayer's taxable year.
e. As used in this section:
"Electric vehicle 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 or more volt alternate current or direct 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.
3. a. (1) For the taxpayer's taxable year beginning in calendar year 2023, a taxpayer shall be allowed a credit against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 25 percent, up to $500, of the amount paid in that taxable year to purchase and install an electric vehicle charging station, provided however that a married taxpayer filing separately shall be allowed credit up to $250.
(2) For the taxpayer's taxable year beginning in calendar year 2024, a taxpayer shall be allowed a credit against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 15 percent, up to $300, of the amount paid in that taxable year to purchase and install an electric vehicle charging station, provided however that a married taxpayer filing separately shall be allowed credit up to $150.
(3) For the taxpayer's taxable year beginning in calendar year 2025, a taxpayer shall be allowed a credit against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 8 percent, up to $150, of the amount paid in that taxable year to purchase and install an electric vehicle charging station, provided however that a married taxpayer filing separately shall be allowed credit up to $75.
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 charging station purchased by the taxpayer qualifies as an electric vehicle charging station. The application for certification shall specifically indicate the date of purchase of the electric vehicle charging station, a description of the vehicles to use the electric vehicle charging station, the amount paid for the electric vehicle charging station, and proof of completed installation of the electric vehicle 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.
As used in this section:
"Electric vehicle 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 or more volt alternate current or direct 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.
4. This act shall take effect immediately.
STATEMENT
This bill provides corporation business tax credit and gross income tax credits for the purchase and installation of certain electric vehicle charging stations. The credits are available for the taxpayer tax periods beginning in calendar years 2023, 2024, and 2025.
The bill provides credits under the corporation business tax and the gross income tax for electric vehicle charging stations used directly and exclusively by the taxpayer in the taxpayer's business, trade, or occupation. For charging stations purchased and installed in 2023 tax periods a taxpayer will be allowed a credit in an amount of 25 percent of the cost, up to $500 per electric vehicle charging station; for a charging station purchased and installed in 2024 tax periods the credit is 15 percent of the cost, up to $300 per charging station; and for a charging station purchased and installed in 2025 tax periods the credit is eight percent of the cost, up to $150 per station.
The bill also provides a gross income tax credit for a charging station purchase that is not required to be for business use. The credit for 2023 is 25 percent of cost, up to $500, for 2024 15 percent of cost, up to $300, and for 2025 eight percent of cost, up to $150, for the purchase and installation of a charging station. Married taxpayers filing separately are allowed up to half of those amounts.
To qualify for the bill's tax credits, the bill requires the taxpayer to file an application for a certification with the Commissioner of Environmental Protection that the charging station purchased and installed by the taxpayer is a qualified electric vehicle charging station.
