Preserving the Vehicle Trade‑in Tax Credit How NJ CAR Created a Coalition to Fight the Governor’s Terrible Idea BY MAGDALENA PADILLA, ESQ., SENIOR VICE PRESIDENT OF GOVERNMENT AFFAIRS, NJ CAR We’ve all heard the adage that “politics makes strange bedfellows,” and Governor Murphy proved it when he introduced his proposed 2026 budget. In his proposal, the Governor included several sales tax proposals to increase State revenues, and numerous groups pushed back to oppose the increases. One proposed option to increase State revenue was to eliminate the trade-in credit for new car sales. Dealers, OEMs, electric vehicle (EV), and environmental advocates — not normally on the same side of many issues — banded together to oppose the elimination. Leading the charge, NJ CAR encouraged OEMs, EV, and environmental advocates to push back as a coalition. Though we held different perspectives, we shared the same opposition to the Governor’s proposal to eliminate the trade-in tax credit. NJ CAR dealers were troubled that, under this proposal, their customers would be discouraged from trading in their old cars and trucks. OEMs objected that the proposal would dampen sales of new cars and trucks if the contract price of the new cars were not reduced by the trade-ins. EV and environmental advocates oppose policies 14 NEW JERSEY auto retailer
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