NJEDA Board Approves Programs to Expand Number of Zero Emission Medium and Heavy-Duty Vehicles on NJ Roadways

NJ ZIP to launch third phase of the popular program

New loan program will offer low-interest financing to support the purchase of zero emission vehicles

TRENTON, N.J. (February 25, 2025) – The New Jersey Economic Development Authority (NJEDA) Board yesterday 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.”

“Under Governor Murphy’s leadership, New Jersey continues to advance programs and initiatives that support the state’s transition to clean energy, lower rates of harmful emissions, and create new economic opportunities for businesses across the state,” said NJEDA Chief Executive Officer Tim Sullivan. “Through NJ ZIP and NJ ZEV, business owners will be able to modernize their fleets with environmentally friendly vehicles that reduce fuel costs and keep their businesses moving forward. New Jersey’s families, especially those living in communities historically disproportionately affected by environment issues, will reap the benefits of improved air quality as a result of more electric vehicles on New Jersey’s roads and highways.”

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. The NJZIP and NJZEV announcements follow on the heels of last week’s $35 million announcement by the Murphy Administration for local government vehicle electrification projects, directly supporting the implementation of the Advanced Clean Trucks rule to achieve increasing percentages of annual electric vehicle sales.

“DEP is proud to partner with the NJEDA and BPU to support initiatives such as NJ ZIP and NJ ZEV that help achieve the Murphy Administration’s goals of cleaner air and healthier, more sustainable communities,” said Environmental Protection Commissioner Shawn M. LaTourette. “These newly launched programs further complement work underway by DEP to increase the number of electric vehicles charging stations, electric school buses, electric garbage trucks and other EVs. When we work together to reduce the presence of air pollutants across the state, the result is a greener and better New Jersey for all.”

“The NJBPU is proud to work with our sister agencies to continue to advance smart, clean transportation initiatives that provide considerable health and environmental benefits to residents,” said NJBPU President Christine Guhl-Sadovy. “NJEDA’s efforts build upon a variety of actions the NJBPU took to expand charging access for medium-and-heavy duty vehicles throughout the state. Establishing a backbone of essential charging infrastructure not only helps build confidence in and helps businesses make the switch to this clean transportation alternative, its benefits are especially vital to the overburdened communities that have borne the brunt of air pollution for far too long.”

About the NJEDA

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses, call NJEDA Customer Care at 844-965-1125 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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