New Jersey has become the best state to buy most current Tesla models, with multiple potential benefits for new and current owners that are residents of the state.
Buying a New Tesla
As of January 17, 2020 a new $5,000 incentive is effective in the state of New Jersey. This applies to anyone purchasing an electric vehicle with a MSRP of under $55,000. 200 miles of EPA-rated electric range is required to qualify for the full rebate, which Tesla surpasses on even the base Model 3.
Standard Range, Standard Range Plus, and Long Range All-Wheel Drive configurations of Model 3 (as well as Model Y) will qualify for the $5,000 rebate. Single Motor and Dual Motor configurations of Cybertruck will qualify in the future as well. The rebate is ongoing for the next ten years until June 30, 2020, assuming the program doesn’t run out of funding.
While the rebate is currently effective, the rebate program itself isn’t setup yet so buyers will have to manually apply for the rebate in June/July. Once the program is setup, the seller of the vehicle (in this case Tesla) will be expected to apply it as a point of sale rebate that buyers would receive immediately upon purchase. This would effectively bring the starting price of Model 3 (Standard Range) to $30,000 for NJ buyers.
NJ also offers a sales tax exemption on fully electric vehicles, which is offered in addition to the rebate. All of Tesla’s vehicles are eligible for the sales tax exemption. NJ has a 7% sales tax rate so the exemption still presents a substantial amount of savings for NJ residents that are purchasing electric vehicles at the top end of the market, including Model S and Model X (which start at $79,990 and $84,990, respectively — making them ineligible for the $5,000 rebate).
Buying a Used Tesla
While the $5,000 rebate is only applicable on the sale of new electric vehicles, used electric vehicles can also benefit from the sales tax exemption. This applies to any NJ residents that are registering their Tesla in New Jersey. (Unlike the new vehicle incentive, which has yet to establish specific terms such as whether vehicles purchased out of state will qualify or further limitations, used Tesla buyers in NJ can purchase an electric vehicle in any state and receive the tax exemption upon registering the vehicle.)
A major component of the bill recently signed in NJ ensures that the state will add a substantial amount of fast chargers accessible across the Turnpike as well as a thousand level 2 chargers, and establishes requirements for businesses and residential areas to begin implementing chargers. This is in addition to Tesla’s own Supercharging/Destination Charger network and expansion plans, ensuring that a growing number of Tesla owners in the state will have plenty of options to charge.
Additionally, all NJ buyers can benefit from a $500 rebate on the installation of level 2 home charging equipment.
(Please note that incentives only apply to New Jersey residents, and aren’t applicable to out-of-state buyers.)
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