Applications are now open for Phase III of the New Jersey Zero Emission Incentive Program (NJ ZIP) and the New Jersey Zero Emission Vehicle Financing Program (NJ ZEV). Both programs from the New Jersey Economic Development Authority aim to accelerate the adoption and use of commercial zero emission medium- and heavy-duty vehicles within the state, while reducing harmful emissions.
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.
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).
Funded at $25 million, the NJ ZEV 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.
Vendor applications will be accepted on a rolling basis. However, vendors interested in being listed on the programs’ website prior to purchaser application launch should submit applications by Tuesday, September 2, 2025 at 5:00 p.m.
Licensed vehicle dealers offering new zero emission medium- or heavy-duty vehicles. Detailed guidelines and eligibility criteria are available here.
For more information about Phase III of NJ ZIP, click here.
