NJ ZEV Financing

NJ Zero Emission Vehicle (ZEV) Financing

The NJ ZEV Financing Program was approved by the NJEDA Board on Feb 12, 2025. Additional notice will be made when applications are open following approval of eligible vendors and vehicles. Please reach out to njzevfinancing@njeda.gov with any initial questions in the interim or if you would like to be added to the program mailing list. Additional information will be added to this page as it becomes available.

The NJ ZEV (Zero Emission Vehicle) Financing Program is a loan program to provide financing for commercial vehicle operators to adopt zero emission vehicles instead of typical combustion vehicles. This program complements the NJ ZIP program, a voucher program to support the adoption of medium and heavy duty zero emission vehicles, by offering financing for vehicle costs that may not be met by vouchers or other grants. Please note, however, purchaser participation in NJ ZIP is not required to obtain NJ ZEV Financing.

The NJ ZEV Financing program offers fixed, low-interest rate loans—recognizing the cost premium often inherent in adopting zero emission vehicles instead of utilizing standard combustion engine options. Loans range from $50,000 to $500,000 for up to a maximum of 100% of eligible vehicle costs. The program is funded with an initial total of $25,000,000 Regional Greenhouse Gas Initiative (RGGI) proceeds allocated to NJEDA. For the first year following application launch, $15M of the total $25M program funding will be set aside for Overburdened Community Applicants.

Borrower Eligibility:

Applicants must meet the following eligibility requirements:

Applicants must be either a commercial or industrial organizations registered in New Jersey
Applicant must meet NJ ZEV loan underwriting criteria
Applicant must be in substantial good standing with the New Jersey Department of Labor and Workforce Development (DOL) and NJ Department of Environmental Protection (DEP) to be eligible for NJ ZEV financing. A current tax clearance certificate will need to be provided prior to application approval to demonstrate the applicant is properly registered to do business in New Jersey and in substantial good standing with the NJ Division of Taxation
Applicants must have existing charging/hydrogen fueling infrastructure OR provide a detailed plan to construct/contract with a charging/hydrogen fueling provider OR identify compatible public charging infrastructure to be available for use for the vehicle(s) being financed
Satisfy the Authority’s debarment/disqualification review and not be in default under any Authority program or have any outstanding obligations to the Authority
Applicants are not allowed to use NJ ZEV financing to purchase vehicles directly from themselves, related or affiliated entities

Eligible Vehicles

Only vehicles that are also eligible for vouchers under the NJEDA’s third phase and future iterations of the NJ ZIP program are eligible for NJ ZEV Financing
Applicant entity must seek to own the vehicles being financed and purchased (not leasing vehicles from another entity)
Only new vehicles used for commercial or industrial purposes are eligible for financing
Vehicle(s) must be purchased, delivered, and registered (in compliance with New Jersey motor vehicle registration requirements) within eighteen months of receipt of commitment letter. Proof of such intent to purchase at time of application is required for eligibility. This will consist of a quote to the applicant from an approved program vendor for eligible vehicle(s)

Eligible Vendors

Eligible vehicles can only be purchased from vendors approved by the Authority to participate in Phase three and future iterations of the NJ ZIP program

Overburdened Community Applicants

Overburdened Community applicants are defined as follows:

The Applicant organization’s business address/headquarters (property can be owned or leased) is located within an Overburdened Community or formally designated Adjacent Community;

and

The Applicant commits to registering new vehicles financed via the NJ ZEV program to an Applicant’s business located within an Overburdened Community or formally designated Adjacent Community.

See more information on Overburdened Communities and a searchable interactive map here:
NJDEP| Environmental Justice | What are Overburdened Communities (OBC)?
Overburdened Communities | NJ Environmental Justice Mapping, Assessment and Protection Tool (EJMAP)

NJEDA will finance up to 100% of eligible vehicle costs. The loan funds can be used for the purchase of one or multiple zero emission vehicles eligible under the Program. Each entity is only allowed one new NJ ZEV loan per entity (unique EIN) per calendar year

Loan Size: Min. $50,000 – Max. $500,000

Interest Rate: Fixed interest rate for duration of loan term. Base Rate of 1/2 the US Treasury 5-year Rate (see Interest Rate Statistics | U.S. Department of the Treasury) + An additional risk-based credit spread determined at time of application approval

Loan Term: 5-years (60 months), beginning upon submission of proof of purchase, delivery, and registration of the financed vehicle.

Collateral/Security: All vehicles financed via the NJ ZEV Financing program will have a lien placed on them with NJEDA as the lienholder. Borrowers must also provide proof of insurance for the vehicle value listing NJEDA as additionally insured.

Following vehicle delivery and proof of NJ vehicle registration, the Applicant will be required to do the following over a 3-year period for each vehicle financed:

1. Maintain ownership and active vehicle registration in New Jersey.

2. Provide annual reporting of summarized vehicle miles traveled (VMT) data captured via telematics devices materially provided to the Applicant through EDA’s vendor or through other approved devices capable of supplying equivalent and compatible data. All borrowers of the NJ ZEV program must operate 75% of annual VMT for each vehicle within the State of New Jersey.

Vehicle sales are not permitted during the 3-year compliance period. Following completion of the vehicle’s 3-year compliance period, Applicants will have the ability to sell the vehicle. However, any outstanding loan balance relevant to that vehicle must be paid in full for the Applicant to have clear title to the vehicle and complete the transaction.

Applications will be reviewed on a rolling basis. Applications will go through the following review process:

Step 1: Applicants submit application and supporting documents, requesting a loan amount based on estimated vehicle(s) cost. Applicants will also provide supporting financial information for underwriting review.

Step 2: NJEDA reviews applications materials, and if acceptable, provides approval of a maximum potential loan amount via a commitment letter. NJEDA loan commitments will not be adjusted following notice of application approval, and the Applicant will be responsible for any potential increase in vehicle purchase price beyond the approved loan amount.

Step 3: Applicants will have 18 months from issuance of a commitment letter to receive and register the financed vehicle(s).

Step 4: After submission of proof of vehicle delivery and registration, loan funds will be disbursed directly to the vehicle dealer and the applicant’s loan term will begin.

Board Memo Frequently Asked Questions (FAQs) Program brochure

INFORMATIONAL WEBINARS

SLIDES l RECORDING

NJ Zero Emission Vehicle (ZEV) Financing

PROGRAM GUIDE

Potential Strategic Engagement Partners