The N.J. Economic Development Authority is now accepting purchaser applications for two programs aimed at decarbonizing transportation and saving businesses money: Phase III of NJ ZIP and the first phase of NJ ZEV Financing.
NJ ZIP Phase III 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 this first round of Phase III, which is funded at $37.5 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 buses, small businesses; and women-, minority-, and veteran-owned businesses. Additionally, 50 percent of funds will be set aside for applications from small businesses in Overburdened Communities (OBCs).
NJ ZEV Financing, which is funded at $25 million, 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 businesses not utilizing the NJ ZIP program. NJ ZEV Financing will offer low-interest rate loans ranging from $50,000 to $500,000 for the purchase of one or more eligible vehicles.
To be eligible, an applicant’s vehicle must be purchased within 18 months of voucher approval or issuance of a loan commitment letter and procured from an approved vendor. Eligible vendors and vehicles for both programs will continue to be updated on a rolling basis.
