Sponsored by:
Assemblyman JEFF VAN DREW
District 1 (Cape May, Atlantic and Cumberland)
SYNOPSIS
Exempts materials and labor used to convert traditional motor vehicles into plug-in hybrid motor vehicles from sales and use tax.
CURRENT VERSION OF TEXT
As introduced.
An Act exempting the materials and labor used to convert traditional motor vehicles into plug-in hybrid motor vehicles from the sales and use tax, and supplementing P.L.1966, c.30 (C.54:32B-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Receipts from retail sales of batteries and electronic equipment used or consumed in converting a traditional motor vehicle into a plug-in hybrid motor vehicle are exempt from the tax imposed under the “Sales and Use Tax Act,” P.L.1966, c.30 (C.54:32B-1 et seq.).
b. The receipts from sales of services used to convert a traditional motor vehicle into a plug-in hybrid motor vehicle are exempt from the tax imposed under the “Sales and Use Tax Act.”
c. The director, in consultation with the Commissioner of the Department of Environmental Protection, the Commissioner of the Department of Transportation, and the Chief Administrator of the New Jersey Motor Vehicles Commission, shall adopt any rules and regulations necessary to implement this section.
d. As used in this section, “plug-in hybrid motor vehicle” means a motor vehicle which meets the applicable federal motor vehicle safety standards with an internal combustion engine, and (1) allows power to be delivered to the drive wheels by a battery-powered electric motor or other mechanical device; (2) has a battery or other mechanical storage device that can be plugged into an electrical outlet to recharge or be able to be recharged from the movement of the vehicle; and (3) has the ability to travel at least five miles powered substantially by electricity or by other forms of mechanical power other than an internal combustion engine.
2. This act shall take effect immediately and apply to retail sales of electrical materials and services rendered in connection with the conversion of plug-in hybrid motor vehicles on or after the first day of the fourth month next following the date of enactment.
STATEMENT
This bill exempts the materials and labor used or consumed in converting traditional motor vehicles into plug-in hybrid motor vehicles from the tax imposed under the “Sales and Use Tax Act,” P.L.1966, c.30 (C.54:32B-1 et seq.). It specifically exempts the receipts of batteries, electronic equipment, or services purchased or rendered in connection with the conversion process of plug-in hybrids.
As defined in this bill, plug-in hybrid vehicles are motor vehicles that meet the applicable federal motor vehicle safety standards with an internal combustion engine, and (1) allow power to be delivered to the drive wheels by a battery-powered electric motor or other mechanical device; (2) have a battery or other mechanical storage device that can be plugged into an electrical outlet to recharge or be able to be recharged from the movement of the vehicle; and (3) have the ability to travel at least five miles powered substantially by electricity or by other forms of mechanical power other than an internal combustion engine.
By exempting the materials and services involved with the plug-in hybrid conversion process, this bill provides an economic incentive for residents of New Jersey to reduce their dependency on fossil fuels. In addition, the bill rewards the technological innovation associated with the development of alternative fuel vehicles, and encourages individuals to adopt modes of transportation that limit overall vehicle emissions.