$5000 rebate for NJ Electric Vehicle signed into law

[Rachmaninov]

Moderator note: Thread moved from Model 3 Production and Ordering Forum.

FYI -
NJ apparently is now offering a $5000 rebate for Electric car purchase. Previously there was a state Sales tax exemption for EVs but not a state rebate.

I believe that a $500 rebate for installing a home charger was also added today.

The deal applies only to cars with a sticker price under $55,000, because lawmakers did not want to provide incentives for luxury car buyer

 

[dropgems]

Does this only apply to new cars or used cars also?

 

[BrewerGlyph]

When does this take effect? Is it limited to NJ residents, or can anyone that buys in NJ take advantage?

 

[StockSoul]

When does this take effect? Is it limited to NJ residents, or can anyone that buys in NJ take advantage?

From what I understand, it's already in effect and the car needs to be registered in NJ.

 

[sandeepvyas]

This is a great initiative by NJ Gov. Phil Murphy signed the bill yesterday and it's a law. However struggling to find out is it in effect immediately (I am thinking yes as they have goals for 2020, 2021 and so on and so forth). It allows rebate upto $5000 for vehicles with range of over 200 miles and $25 per mile range for less than 200 miles.

The only question remains "How does one apply for this rebate". "Is the car discounted at the purchase point or post the purchase its processed"?

Does anyone has a clue?

 

[TTinNJ]

The only question remains "How does one apply for this rebate". "Is the car discounted at the purchase point or post the purchase its processed"?

Does anyone has a clue?

They still have to figure out the exact process for everything, but I believe once they get it all settled you will actually be able to receive the rebate upon delivery of your vehicle. Meaning the check you give Tesla on the day you get your car will be $5,000 less than it otherwise would have been.

But if you’re buying yours soon and they don’t have all the logistics in place yet for you to ge the rebate upon delivery, then I imagine you will get the rebate in the form of a $5,000 tax credit when you file your tax return next year.

 

[sandeepvyas]

Thanks....I believe if I pick up my car in March, then I am eligible for the rebate. Dont want to loose on this oppty knowing it helps u save some green and and at the same time protect the green...

 

[lensovet]

Nothing in the bill suggested this would be a tax return.

we also have an existing thread on this, NJ Owners a Nice Surprise. Can an admin merge?

 

[socbrian]

Wonder how you receive the $500 home charger install rebate. About to have mine installer on Wednesday.

 

[TTinNJ]

Nothing in the bill suggested this would be a tax return.

we also have an existing thread on this, NJ Owners a Nice Surprise. Can an admin merge?

Wonder how you receive the $500 home charger install rebate. About to have mine installer on Wednesday.

I also didn’t see any mention of how the rebates would be administered, other than the wording saying it could be received directly at time of vehicle purchase. But if that process isn’t up and running when you get your vehicle (for example, if you’re getting it in the next several weeks), then there will need to be a other way to ge the rebate. My guess is that they’d do that by giving you a $5,000 credit on your tax return. As a CPA who does taxes, this is a very common way that states use when they need to return money to citizens. Just like the federal rebate was a tax credit, NJ’s rebate could work the same way.

 

[StockSoul]

I also didn’t see any mention of how the rebates would be administered, other than the wording saying it could be received directly at time of vehicle purchase. But if that process isn’t up and running when you get your vehicle (for example, if you’re getting it in the next several weeks), then there will need to be a other way to ge the rebate. My guess is that they’d do that by giving you a $5,000 credit on your tax return. As a CPA who does taxes, this is a very common way that states use when they need to return money to citizens. Just like the federal rebate was a tax credit, NJ’s rebate could work the same way.

You're a CPA? Would you mind telling me what form I need to fill out to claim my federal tax credit? I took delivery of my car at the end of 2019.

 

[Scottykaps]

I also didn’t see any mention of how the rebates would be administered, other than the wording saying it could be received directly at time of vehicle purchase. But if that process isn’t up and running when you get your vehicle (for example, if you’re getting it in the next several weeks), then there will need to be a other way to ge the rebate. My guess is that they’d do that by giving you a $5,000 credit on your tax return. As a CPA who does taxes, this is a very common way that states use when they need to return money to citizens. Just like the federal rebate was a tax credit, NJ’s rebate could work the same way.

It's a point of sale rebate. Scroll down on this page: Home - Drive Green - Air Quality, Energy and Sustainability (AQES) | Department of Environmental Protection

 

[lensovet]

California does not administer this via a tax rebate and they’ve had a program like this for over a decade at this point.

the law says that the BPU will determine how the rebates will be administered. Seems unlikely that the BPU has any authority over income tax filing in NJ.

 

[TTinNJ]

You're a CPA? Would you mind telling me what form I need to fill out to claim my federal tax credit? I took delivery of my car at the end of 2019.

It’s Form 8936 and it goes along with your usual 1040.

California does not administer this via a tax rebate and they’ve had a program like this for over a decade at this point.

the law says that the BPU will determine how the rebates will be administered. Seems unlikely that the BPU has any authority over income tax filing in NJ.

You could be right. Maybe it’ll just be an application that you fill out and mail in. But hopefully they get it sorted out so that you simply get the rebate directly from Tesla at time of purchase.

 

[dropgems]

What’s with the 55k price threshold? It’s like in the worst spot for the model 3. So if I understand this correctly... no 5k rebate if you buy a p3 because it’s 56.9k but you can buy a LR and hold off on the FSD at purchase and get the 5k rebate?

 

[BUSMAN]

L

What’s with the 55k price threshold? It’s like in the worst spot for the model 3. So if I understand this correctly... no 5k rebate if you buy a p3 because it’s 56.9k but you can buy a LR and hold off on the FSD at purchase and get the 5k rebate?

Legislators probably have no clue what's a M3 Dont take it personal.

 

[dropgems]

Yea I’m just wondering how it works. So “sticker price” in tax credit land is basically the purchase price specced out before delivery, taxes and fees?

 

[TTinNJ]

Yea I’m just wondering how it works. So “sticker price” in tax credit land is basically the purchase price specced out before delivery, taxes and fees?

Exactly. Think MSRP, except that Tesla doesn’t operate that way so it’s an actual price, not suggested. But yeah, it’s the price of the car before taxes and fees.

 

[dropgems]

Right but “used Tesla’s” (even inventory don’t qualify for tax credit correct?). lowest price Tesla performance is over 56K so there’s no creative way to make the incentive work on the p3 right?

 

[lensovet]

Yes new car sales only