Download Our NJ Electric School Bus Buyers’ Guide
This free, easy-to-read guide provides basic information on everything you need to know to purchase electric school buses. It contains lists of vendor contacts, information on grants, tax incentives, and rebates, and basic information on how to select the best bus to meet your district’s specific needs.
Will Diesel-to-Electric Conversions be an Economical Alternative for School Districts?
Videos
The ABCs of Electric School Buses. Learn the facts about electric school buses.
Learn Why Electric School Buses Are the Future. In this short video, Sierra Club New Jersey Chapter informs viewers of the benefits of Electric School buses and how school districts can get on board.
Grants, Rebates, and Tax Incentives
School Districts, Charter Schools, Private & Parochial Schools and School Bus Contractors are eligible to apply for federal and state grants, rebates, and tax incentives to help cover the additional costs of purchasing an electric school bus. Following is a list of those programs with current information regarding application deadlines and status. Please refer to pages 32 – 37 in the Buyers’ Guide for a complete description of these programs.
Below is a List of all the Possible Grant Programs:
NJDEP Electric School Bus Program
Summary: Beginning in spring 2024, this program offers $15 million in grants per year through 2025. In October, 2024, the Department of Environmental Protection announced first round grants to 14 districts and schools for a total of $15 million to purchase 48 buses and associated charging stations.
Current Status: The Department is expected to announce a new grant cycle in either January or February, 2025. However, the Department does accept applications on a rolling basis with awards made when funding is available.
Program Web Site: NJDEP| Stop the Soot | Electric School Bus Program
Sign Up for notifications at: New Jersey Department of Environmental Protection (govdelivery.com)
NJDEP Regional Greenhouse Gas Initiative (RGGI) Grants
Summary: The State’s On-Road Vehicle Electrification Program focuses on modernizing the Medium and Heavy-Duty (MDHD) Fuel-Powered Vehicle sector with Zero-Emission Alternatives. In addition to school buses, replacement of on-road MDHD diesel vehicles such as garbage trucks, street sweepers, passenger shuttles and buses, delivery vans and off-road vehicles and boats are eligible to be funded via this program .
Current Status: Applications for grants are accepted and reviewed on an on-going basis and are considered for award as funding sources become available. Since funding under the Electric School Bus Program became available, the DEP is less likely to fund ESBs through this program.
Program Web Site: NJDEP| Stop the Soot | Vehicle Electrification Projects
Sign Up for notifications at: dmpproposal.pdff
NJEDA NJ Zip Program
Summary: The NJ Economic Development Authority also receives funding under the RGGI program for subsidizing the purchase of zero emission replacement of diesel powered vehicles, including school buses. There have been two funding cycles for a range of municipal vehicles, but school buses have not been funded in the past under this program.
Current Status: The program is now closed, pending the announcement of a Phase 3 funding cycle.
Program Web Site: NJ ZIP - NJEDA
How to Apply: use the program web site to sign up for notices of grant cycles.
NJBPU Clean Fleet EV Program
Summary: The NJ Board of Public Utilities Clean Fleet Program accepts applications to subsidize light duty electric vehicles and Level 2 and Level 3 charging stations and utility make-ready costs for school bus fleets. Projects in overburdened communities are eligible for additional grant funds over the base award.
Current Status: Funds are dispensed on a first come first served basis up to the amount allocated by the legislature each fiscal year (July-June.) As of November 1, 2024, there is $32 million remaining in the vehicle budget line and $3.5 million remaining in the charger budget line
Program Web Site: Clean Fleet EV Program | Charge Up New Jersey
Sign Up for notifications at: use the program web site to sign up for notices of grant cycles.
US EPA Clean School Bus Program (CSBP)
Summary: In the landmark Infrastructure Investment & Jobs Act, Congress budgeted $5 billion in funding over 5 years to fund grants and rebates to school districts to subsidize the purchase of zero and low emission school buses and associated charging infrastructure.
Current Status: The fall 2024 grant cycle is now in progress. Applications are due on January 9, 2025 at 4 PM EST.
Program Web Site: Clean School Bus Program | US EPA
Sign Up for notifications at: Signup Form
US EPA Clean Heavy Duty Vehicle Program
Summary: In this landmark Infrastructure Investment & Jobs Act, Congress budgeted $932 million dollars for a competitive grant program to replace class 6 & 7 heavy duty vehicles with zero emission vehicles and associated charging infrastructure, with 70% allocated for electric school buses.
Current Status: The first round of funding closed in July 2024. A new round of funding is expected to be announced in early 2025, or possibly before the end of 2024.
Program Web Site: Clean Heavy-Duty Vehicles Grant Program | US EPA
Sign Up for notifications at: Signup Form
US EPA Diesel Emission Reduction Act (DERA)
Summary: Eligible activities under the Diesel Emissions Reduction Act include the retrofit or replacement of existing diesel engines, vehicles and other equipment. Applications are accepted from regional, state and local agencies, including public and charter schools. This is currently the only program that will pay for repowered school buses (diesel to electric conversions.)
Current Status: This program is currently closed, but a new round of funding is expected to be announced sometime in 2025.
Program Web Site: Diesel Emissions Reduction Act (DERA) Funding | US EPA
Sign Up for notifications at: the above web site.
Inflation Reduction Act (IRA) Direct Pay Tax Credits for Government Agencies.
Summary: Under the Inflation Reduction Act of 2022, governmental agencies and other tax-exempt organizations that buy a battery electric or fuel cell vehicle may qualify for a federal tax credit of up to $40,000 (Internal Revenue Code 45W) even though they normally do not pay taxes. The credit equals the lesser of:
- 15% of your basis in the vehicle (30% if the vehicle is not powered by gas or diesel), or
- The incremental cost of the vehicle
Current Status: There is no limit on the funds available for this program. After buying a zero emission vehicle, applicants must register with IRS and then file a tax return for the year in which the vehicle is purchased.
Program Web Site: Direct Pay | Clean Energy | The White House
How to Apply: Click on these links to learn how to apply:
Register for elective payment or transfer of credits | Internal Revenue Service (irs.gov)
AESB Fact Sheet - New Tax Credits & Direct Payment for School Districts - Google Docs
Additional Resources:
Buyers Guide. Prepared by the Transportation Committee of the Sierra Club New Jersey Chapter (October 2024)
NJ DEP Electric School Bus Program (January 2024)
EPA School Bus rebate 1-Pager (November 10, 2024)
Stop the Soot (February 2024)
NJ School Bus Inventory (Dec 2023)
8 Things to Know about Electric School Bus Repowers (Feb. 2023)
Duke Energy Sustainable Solutions: Benefits of Solar Panels for Schools (October 2022)
The Evidence Is Clear: Electric School Buses Are the Best Choice to Reduce Emissions (September 1, 2022)
Electric School Buses Are Here (NJSBA 2022 Workshop Power Point)
Massachusetts Celebrates First V2G Benefits from Electric School Bus (October 13, 2021)
Student Transporters Determine Affordability of Electric School Buses (September 15, 2021)
Electric School Bus Projects - Charging Stations (Virginia Clean Cities)
7 Steps to Successfully Adopt an Electric School Bus (2020)
Power Points:
Electric School Bus Adoption Strategies (October 2024)
