The New Jersey Economic Development Authority (NJEDA) board approved two programs aimed at putting more zero emissions vehicles on roads across the state. Together, Phase III of the New Jersey Zero Emission Incentive Program (NJ ZIP) and the New Jersey Zero Emission Vehicle Financing Program (NJ ZEV), aim to accelerate the adoption and use of commercial zero-emission medium and heavy-duty vehicles within the state, while reducing harmful emissions.
“I am thrilled to see our state is moving closer to zero emission roadways with the approval of NJ ZIP and NJ ZEV,” said Governor Murphy. “This past December we hit a significant milestone of surpassing 200,000 electric vehicle registrations – leading to reduced greenhouse gas emissions, improved air quality, and a cleaner, healthier New Jersey for all. The programs approved today by the NJEDA Board will continue to drive us forward in our mission of decarbonizing transportation, reducing consumer costs, and responding to market preferences.”
The board approved Phase III of NJ ZIP, which will provide vouchers to businesses and institutional organizations to offset the cost of purchasing new, zero emission medium and heavy-duty vehicles. The size of vouchers awarded through Phase III, which is funded at $75 million, will vary depending on the class of vehicle being purchased, from a minimum of $15,000 for Class 2b vehicles to $175,000 for Class 8 vehicles. Bonuses will be available for school busses, small businesses; women-, minority-, and veteran-owned businesses. Additionally, 50 percent of funds will be set aside for applications from small businesses in Overburdened Communities (OBCs).
Originally created in 2021, NJ ZIP has awarded $54 million in vouchers to 155 applicants, supporting the purchase of 422 new zero emission vehicles.
During the meeting, the board also approved a new, $25 million program known as the NJ ZEV Financing Program, which is a loan program to support businesses adopting medium and heavy-duty zero emission vehicles. The program complements NJ ZIP by offering financing for vehicle costs that may not be met by NJ ZIP vouchers or other available grant funding resources. Loans will also be available through the program for business not utilizing the NJ ZIP program. NJ ZEV will offer low-interest rate loans ranging from $50,000 to $500,000 for the purchase of one or more eligible vehicles. For more information on the program and for eligibility requirements, click here.
Funding for both NJ ZIP and NJ ZEV are from the Regional Greenhouse Gas Initiative (RGGI). As part of the 2023-2025 RGGI Strategic Funding Plan, the New Jersey Department of Environmental Protection (NJDEP), the New Jersey Board of Public Utilities (NJBPU), and the NJEDA committed to investing in several clean energy initiatives, including catalyzing clean, equitable transportation in the state.
Published March 2025
