The funding available in Year 2 of the Charge Up New Jersey Electric Vehicle (EV) Incentive Program, has dipped below $5 million as of today (September 7th). When that funding is exhausted, the Program will shut down until it can be funded again, presumably in July 2022.
The program is currently structured to provide $30 million of incentive money each year for 10 years, from 2020-2030. In Year 1, the funding for the post-purchase program ran out in December 2020. The Program was relaunched on July 6, 2021 as a point-of-sale program and available funds are already down below $5 million.
There are ongoing talks in Trenton to possibly expedite funding in the Program, but it is unclear whether those discussions will result in action to hold off another temporary shutdown of the Program until July 2022, when the Legislature could possibly fund Year 3.
As of right now, no Year 2 closeout date has been announced, however given the low balance, NJ CAR wants to make dealers aware of the remaining funding for Year 2.
NJ CAR communicates frequently with the BPU and CSE, the company tasked with implementing the Program. The Coalition has reached out seeking clarification on what impact the new available funds balance will have on future EV sales and dealership reimbursement applications.
The rapid depletion of funds is concerning. NJ CAR has emphasized that many dealerships may have ordered EV inventory in anticipation of the Charge Up New Jersey incentive money being available for a longer period of time.
In the interim, if your dealership has EV inventory in stock, you can continue promoting the program and offering the incentive to potential customers. Any eligible EV sold (or ordered by a customer) before the yet-to-be-determined close-out date of Year 2 will be eligible for reimbursement, as long as the application is submitted within 14 days of the transaction’s completion.
If your dealership does not have EV inventory, you may want to reconsider whether or not to hold off on ordering additional vehicles (if they are even available).
NJ CAR will continue communicating with BPU and CSE to gain a better understanding of precisely how Year 2 of the Charge Up New Jersey Program will be wound down, as well as any potential changes to how Year 3 of the Program operates (AND a relaunch date).
What Should Participating Dealerships Do Right Now?
In order to ensure reimbursement for any money credited to the customer as part of the Charge Up New Jersey point-of-sale EV incentive, CSE reminds participating dealerships to be aware that:
- Sales (or orders) of eligible EVs made after the Year 2 close date will NOT be eligible for the incentive.
- Status updates of the program will be made on the Charge Up New Jersey website. Dealers must be sure they are accurately communicating the status of the program to customers. NJ CAR will communicate any updates it receives via email.
The Coalition will continue updating members as new information becomes available.
For more information and complete eligibility requirements, visit chargeup.njcleanenergy.com.