Bill Text: NJ A4412 | 2022-2023 | Regular Session | Introduced
Bill Title: Exempts sales of electronic vehicle batteries intended to be repurposed from sales and use tax.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2022-06-29 - Introduced, Referred to Assembly Environment and Solid Waste Committee [A4412 Detail]
Download: New_Jersey-2022-A4412-Introduced.html
Sponsored by:
Assemblyman RONALD S. DANCER
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Exempts sales of electronic vehicle batteries for intended to be repurposed from sales and use tax.
CURRENT VERSION OF TEXT
As introduced.
An Act providing sales and use tax exemption for sales of electronic vehicle batteries intended to be repurposed, supplementing P.L.1966, c.30 (C.54:32B-1 et seq.)
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Receipts from sales of an electronic vehicle battery intended for repurposing, remanufacturing, or recycling of the battery shall be exempt from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.)
b. As used in this section:
"Electric vehicle" means a vehicle that derives all or part of its power from electricity supplied by the electric grid, and that has a battery or equivalent energy storage device that can be charged from an electricity supply external to the vehicle with an electric plug. "Electric vehicle" includes a plug-in hybrid vehicle.
"Electric vehicle battery" means a rechargeable battery that is used to power the electric motor of an electric vehicle. "Electric vehicle battery" includes, but is not limited to, lithium-ion batteries, nickel-metal hydride batteries, and lead-acid batteries.
"Plug-in hybrid vehicle" means a vehicle that can be charged from a source of electricity external to the vehicle through an electric plug, but is not exclusively powered by electricity.
2. This act shall take effect immediately; provided, however, that section 1 shall apply to receipts received from all sales made on and after the first day of the second calendar quarter next following the date of enactment.
STATEMENT
This bill exempts from the New Jersey sales and use tax the sales of electronic vehicle batteries intended for repurposing, remanufacturing or recycling of the battery. Electric rechargeable batteries that are used to power the electric motor of electric vehicles have been commercially available in motor vehicles for over a decade and have been shown to have a long, useful capacity in use in motor vehicles. But electric batteries in many aging first and second generation electric vehicles will be approaching the end of their full capacity for powering the electric motors in electric vehicles.
Yet electric vehicle batteries are not dead when they come to the end of their useful life in an electric vehicle. Reused or "second-life" electric vehicle batteries, especially lithium-ion batteries, still have a lot of energy storage capacity left in them, and these batteries in stationary applications have begun to gain market traction. New research, growing automotive industry interest, and an expanding startup ecosystem suggest that the economics of second-life battery systems coupled with grid-scale solar installations will create a resale market in electric vehicle batteries that are no longer capable of vehicle use.
This developing marketplace for reuses will discourage the disposal of these batteries that often contain toxic chemicals in landfills or in other environs. The application of a sales and use tax exemption on the sale of electric vehicle batteries intended to be repurposed is a tax advantage that should be applied to encourage the development of these secondary, energy storage and environmentally sound reuses.
