Pub. 20 2021-2022 Issue 2

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E 2 | 2 0 2 1 18 new jersey auto retailer 14-DAY SUBMISSION WINDOW Under the Program, dealerships have 14 days, from the date of sale or lease, to submit the reimbursement application. The 14 days are calendar days and include Saturdays, Sundays, and holidays when determining the application deadline. The Charge Up New Jersey Program is a first-come, first-served program. Therefore, it is in the dealership's best interest to submit the application on the transaction day or as close to it as possible to minimize any chance of the 14-day window closing or funding being expended before the application is submitted. Applications submitted after the 14-day window will be denied. Dealerships are encouraged to submit their applications as quickly as possible. Visit the Charge Up New Jersey webpage (chargeup.njcleanenergy.com ) for a complete list of program details, including how to become an eligible dealer to participate in the program, how much funding is in the program, and other useful tools. New Jersey Continues Its Push Toward Plug-In Vehicles New Jersey’s long-standing effort to improve air quality, reduce greenhouse gas emissions, and reduce operating costs for consumers culminated in the passage of the Electric Vehicle (EV) Act on January 17, 2020. The law sets aggressive goals to reach by December 31, 2025 including: • 330,000 light-duty, plug-in electric vehicles are to be registered in New Jersey, and • at least 1,000 Level Two electric chargers available for public use across the state. The EV Act was the natural culmination of more than a decade of legislation, beginning with New Jersey’s commitment to implement the California Low Emission Vehicle (Cal LEV) Program in 2003 and the passage of the Global Warming Response Act in 2007. These laws, coupled with the State’s Energy Master Plan, sent New Jersey on the road toward the use of low- and zero-emission vehicles, including plug-in EVs. The EV Act aims to achieve its aggressive goals by providing incentives for the purchase or lease of EVs and related charging equipment. The Charge Up New Jersey Program (discussed in several stories or columns in this issue) is the result of that requirement. New Jersey has implemented various incentive programs to spur the transition from internal combustion engine (ICE) to zero emission vehicles (ZEV). Along with the Charge Up New Jersey Program, the State also offers the following additional incentives: • ZEV Sales Tax Exemption • It Pay$ to Plug In EV Charging Grants Program • Diesel Vehicle and Equipment Electrif ication Grants • eMobility: Grants for Electric Car- sharing and Ride-hailing Services • Clean Fleet EV Incentive Program: Funding for State and Local Governments • EZ Pass Green Pass Discount on Tolls • HOV Lane Access for ZEV • No Luxury and Fuel-Ineff icient Vehicle Surcharge for ZEV (LFIS) The federal government has also issued incentives for the use of ZEV or plug-in electric vehicles. Incentives include the Plug-in Electric Drive Vehicle Credit of up to $7,500, the Alternative Fuel Vehicle Refueling Property Credit, and the Alternative Motor Vehicle Credit. MSRP in Year 2 of the Charge Up New Jersey Program The base model MSRP predetermines the incentive amount, however the effective MSRP, after installed packages and add-ons, may make a vehicle either eligible for a lower incentive amount or ineligible if the caps are exceeded. In the MSRP Calculation Not in the MSRP Calculation • Add-ons made at point-of-sale • Items relate to the value of the vehicle • Battery upgrades • Autonomous upgrades • Wheel and tire packages • Interior or exterior color options • Entertainment systems • Interior or exterior upgrades that are not part of the trim level (e.g. heated seats, heated steering wheel, dimming mirror, etc) • Add-ons made after point of sale • Items do not relate to value of the vehicle • Floor mats • Cargo nets • Destination charges • Delivery charges • Tax • Registration fees • Title fees • Documentation fees • Maintenance packages • Vehicle care packages • First Aid kits VEHICLE #1 Maximum Incentive Based on Base Model MSRP Incentive Amount With VALUE Add-Ons At Point of Sale 2021 Hyundai Kona Electric with MSRP of $45k Eligible for $5k Eligible for $2k VEHICLE #2 Maximum Incentive Based on Base Model MSRP Incentive Amount With VALUE Add-Ons At Point of Sale Eligible vehicle with an MSRP of $50k Eligible for $2k Price above $55k INELIGIBLE VEHICLE #3 Maximum Incentive Based on Base Model MSRP Incentive Amount With NON- VALUE Add-Ons At Point of Sale 2021 Hyundai Kona Electric With MSRP below $45k 258 miles-range Eligible for $5K Eligible for $5k VEHICLE #4 Maximum Incentive Based on Base Model MSRP Incentive Amount With NON- VALUE Add-Ons At Point of Sale 2021 BMW i3 With MSRP above $45k 153 mile-range Eligible for $2k Eligible for $2k EXAMPLES of how the MSRP determines eligibility and determines the final incentive amount: EVs continued from page 17