New Jersey A 3565: Provides corporation business tax credits and gross income tax credits for purchase of certain compressed natural gas vehicles.

Bill Text

A3565 

ASSEMBLY, No. 3565 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman LOUIS D. GREENWALD

District 6 (Burlington and Camden)

SYNOPSIS

���� Provides corporation business tax credits and gross 
income tax credits for purchase of certain compressed natural gas vehicles.

CURRENT VERSION OF TEXT 

���� Introduced Pending Technical Review by Legislative 
Counsel.

�� 

An Act providing corporation business tax credits and 
gross income tax credits for the purchase of certain compressed natural gas vehicles, 
and supplementing P.L.1945, c.162 (C.54:10A-1 et seq.) and Title 54A of the New 
Jersey Statutes.

���� Be It 
Enacted by the Senate and General Assembly of 
the State of New Jersey:

���� 1.��� a.� For privilege 
periods beginning in 2023, 2024, and 2025, a taxpayer shall be allowed a credit 
against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) 
for the amount paid during the privilege period to purchase a compressed 
natural gas vehicle which is used directly and exclusively by the taxpayer in 
the taxpayer�s business, trade, or occupation.� 

���� For purchases made in privilege 
periods beginning in 2023, the credit allowed pursuant to this section shall be 
in the amount of up to $3,500 for the purchase of a compressed natural gas 
vehicle.

���� For purchases made in privilege 
periods beginning in 2024, the credit allowed pursuant to this section shall be 
in the amount of up to 
$2,500 for the purchase of a compressed natural gas vehicle.

���� For purchases made in privilege 
periods beginning in 2025, the credit allowed pursuant to this section shall be 
in the amount of up to 
$1,500 for the purchase of a compressed natural gas vehicle.

���� b.��� (1) �To qualify for the 
tax credit allowed pursuant to this section, the taxpayer shall file an 
application for a certification from the Commissioner of Environmental 
Protection that the vehicle purchased by the taxpayer qualifies as a passenger 
automobile that is fueled by compressed natural gas.� The certification shall 
specifically indicate the date of purchase of the vehicle, a description of the 
vehicle, and the amount paid for the vehicle.� The commissioner shall prescribe 
the form for the application and certification and may require the submission 
of supplemental materials with an application including but not limited to a 
copy of the receipt of purchase.

���� (2)�� The Commissioner of 
Environmental Protection shall have 90 days from the date of receipt of a 
complete application to make a determination as to the issuance of a 
certification.

���� (3)�� Upon certification, the 
Commissioner of Environmental Protection shall submit a copy thereof to the 
taxpayer and the director.� In filing a tax return that includes a claim for 
the credit allowed pursuant to this section, the taxpayer shall include a copy 
of the certification.

���� c.���� The amount of the 
credit applied under this section against the tax imposed pursuant to section 5 
of P.L.1945, c.162, for a privilege period, when taken together with any other 
credits allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162, 
shall not exceed 50% of the tax liability otherwise due and shall not reduce 
the tax liability to an amount less than the statutory minimum provided in 
subsection (e) of section 5 of P.L.1945, c.162.� The priority in which credits 
allowed pursuant to this section and any other credits shall be taken shall be 
as determined by the Director of the Division of Taxation.� The amount of the 
credit otherwise allowable under this section which cannot be applied for the 
privilege period due to the limitations of this subsection or under other 
provisions of P.L.1945, c.162 may be carried over, if necessary, to the seven 
privilege periods following the privilege period for which the credit was 
allowed.

���� 2.��� a.� For privilege 
periods beginning in 2023, 2024, and 2025, a taxpayer shall be allowed a credit 
against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) 
for the amount paid during the privilege period to purchase a Class 8 
compressed natural gas truck which is used directly and exclusively by the 
taxpayer in the taxpayer�s business, trade, or 
occupation.� 

���� For purchases made in privilege 
periods beginning in 2023, the credit allowed pursuant to this section shall be 
in the amount of up to $25,000 for the purchase of a Class 8 compressed natural 
gas truck.

���� For purchases made in privilege 
periods beginning in 2024, the credit allowed pursuant to this section shall be 
in the amount of up to $15,000 for the purchase of a Class 8 compressed natural 
gas truck.

���� For purchases made in privilege 
periods beginning in 2025, the credit allowed pursuant to this section shall be 
in the amount of up to $7,500 for the purchase of a Class 8 compressed natural 
gas truck.

���� b.��� (1) �To