On October 5, 2022, the Internal Revenue Service (IRS) issued six notices requesting comments on different aspects of extensions and enhancements of energy tax benefits under the Inflation Reduction Act (IRA).[1] The announcement is the first formal step in the process of implementing the IRA. Most of the IRA’s $369 billion for energy and climate efforts are in the form of tax credits. The value of these tax credits is estimated at $270 billion. The six notices focus on the production tax credit (PTC) and investment tax credit (ITC), credit enhancements that would boost the credit value for meeting certain prevailing wage and domestic content requirements, home and building incentives, clean vehicle credits, manufacturing credits to help build clean energy supply chains, and credit monetization.

The Treasury Department also released a fact sheet that outlined the IRS’s implementation process. The department said it will convene roundtables with industry, labor unions, and climate and environmental justice advocates over the coming weeks. The Treasury stated that it would ideally like comments from the public on the new notices within 30 days.

[1] https://www.irs.gov/newsroom/irs-asks-for-comments-on-upcoming-energy-guidance

On July 25, 2022, New Jersey Governor Phil Murphy (D) announced the launch of the third year of the state's Charge Up New Jersey electric vehicle (EV) incentive program and unveiled the state's new Residential EV Charger Incentive Program.[1] Over the last two years, the Charge Up New Jersey program provided incentives for more than 13,000 vehicles. Over the last two years of the program, over 13,000 EVs were purchased or leased with this incentive. In its third year, the program will provide up to $4,000 for vehicles with a Manufacturer's Suggested Retail Price (MSRP) under $45,000 and up to $2,000 for vehicles with an MSRP between $45,000 and $55,000. The new charger incentive program offers a $250 rebate for a residential charger and can be combined with existing utility programs, which may cover installation costs.

In the last two years, the New Jersey Board of Public Utilities (NJBPU) has approved EV charging incentive programs for Jersey Central Power and Light, Public Service Electric and Gas, and Atlantic City Electric. In addition, in fiscal year 2022, NJBPU launched three new programs, collectively providing over $12 million in incentives for the purchase of more than 900 Level Two chargers and over 60 Fast Chargers across the state. The NJBPU released the names of all the FY2022 EV grant recipients and will also open FY2023 applications for those programs – Clean Fleet, EV Tourism Charger, and the Multi-Unit Dwelling (MUD) Charger Program. The Clean Fleet program provides grants for government entities for the purchase of EVs and chargers. The MUD EV Charger Incentive Program was designed to encourage owners and operators of multi-unit dwellings to provide EV chargers for residents and guests. Finally, the EV Tourism program provides funding for chargers at tourist locations across the state.

[1] https://nj.gov/governor/news/news/562022/approved/20220725a.shtml