Maryland EV Tax Credit: What You Need To Know
Maryland is a great state to own an electric vehicle in. The state has had a few EV incentives; some have expired, and some are still going. So let’s take a look.
At a Glance:
1️⃣ Maryland has an EV tax credit called an excise credit of up to $3000.
2️⃣ The state rebate on charging equipment has ended, but private sector incentives to residents/businesses are still available.
3️⃣ Some utilities provide a TOU (Time Of Use) rate for charging an electric vehicle.
4️⃣ All plug-in cars get to use the HOV lane, regardless of how many passengers are in the car.
It is so easy to become overwhelmed with all the information available online, especially when so much of it changes due to policy.
Keep reading to find out, in detail, everything you currently need to know about Maryland’s electric vehicle tax credit and much more.
Maryland’s EV Tax Credit: An Overview
The big question is, what might you be eligible for as a Maryland resident who owns or wants to own an electric vehicle?
Apart from a utility rebate and a federal EV tax credit, Maryland residents can claim up to $3000 to purchase an electric vehicle.
If you combined that tax credit with the federal tax credit, you could slash around $10,500 off the cost of a new vehicle which is significant.
Additionally, electric vehicles are exempt from state emissions inspections, saving you a lot of money.
There are limitations to the Maryland Excise tax credit, and you should submit your application as soon as possible because if you wait too long, there might not be enough funding to process your claim.
What Are Maryland’s EV Charging Station Rebates?
The Maryland Energy Administration (MEA) ran a rebate program on charging stations from July 1, 2021, to June 30, 2022. It covered up to 40% of the costs, but only up to the limits of:
- Homes: $700
- Businesses, Nonprofits, Workplaces, Apartment Buildings, and Government Groups: $4,000
State residents may apply for the federal EV charger tax credit, which is still running. Or look to private/utility rebates on charging equipment covered in the next section.
Does Maryland Have Utility Incentives For EV Owners?
Most major utility providers in Maryland offer a few incentives for electric vehicle owners.
The best thing to do before or after getting your vehicle is to phone your provider and ask them what they can offer you.
In some cases, you might get better utility rates for charging your car; in others, you may be eligible for a rebate.
|Potomac Edison||Residential||$300||Level 2 EV charging station||EV Driven website|
|Potomac Edison||Multifamily||Up to $20,000||Level 2 or DCFC stations||EV Driven website|
|Potomac Edison||Public/Government||Free installation and operation||Level 2 or DCFC stations||Potomac Edison Public Charging Stations website|
|BGE||Commercial||50% of the cost (up to $5,000 per Level 2 port; up to $15,000 per DCFC port)||Level 2 or DCFC stations||BGE EVsmart website|
|BGE||Residential||$50 annual credit from Baltimore Gas And Electric Company||Level 2 EV charging station (charge during off-peak hours)||Pepco EVsmart website|
|Delmarva Power||Residential/Multifamily||$300||Level 2 smart EV charging station||After July 1, 2019|
|Pepco||Residential||$300||Level 2 smart EV charging station||After July 1, 2019|
|Pepco||Multifamily||100% of the cost (up to $15,000 per station)||Level 2 smart EV charging station||Pepco EVsmart website|
|SMECO||Public/Government||Free installation and operation||Level 2 or DCFC stations||SMECO EV Recharge website|
💡 Note: The above table is not exhaustive. For every EVSE incentive currently running, visit the Alternative Fuels Data Center
How To Claim The EV Tax Credit In Maryland?
So, if you plan to get an electric vehicle and live in Maryland, knowing how to claim your tax credit of up to $3,000 can make your life easier. Here is what you need to do:
1️⃣ First, you must buy or lease an EV meeting specific requirements. It has to be new or used, and it has to be either a BEV, plug-in EV, fuel cell EV, or electric motorcycle. Also, it should be registered in Maryland, and the suggested retail price has to be $50,000 or less.
2️⃣ Once you have your EV, complete a Maryland Form 502CR. You can find it on the Maryland tax department’s website. Ensure that you have all the necessary documents, such as proof of purchase or lease, and follow the instructions on the form carefully.
3️⃣ After you have completed the form and gathered all the necessary documents, you can submit them to the Maryland tax department. You can do this either electronically or by mail.
Just be aware that the tax credit is limited and given out on a first-come, first-served basis. So, the sooner you apply, the better your chances of getting it.
4️⃣ If your application is approved, you’ll receive the tax credit, and you can apply it to your Maryland state income tax liability.
If at any point you find yourself struggling, I recommend speaking to a tax professional.
What Are The Benefits Of Maryland’s EV Incentives?
There are 6.1 million people that live in the state of Maryland. If only 10% of that population converts to using electric vehicles, that is still 610,000 fewer fossil fuel-powered cars on the road.
Because the state has one of the country’s best incentive programs for electric vehicles, it is a high chance they can convert many people. Thus it could significantly positively impact the environment.
There is also an economic benefit. Most people will buy a car anyway, so having an extra $3000 to spend after purchasing that vehicle means more money in circulation. Thus, there is an economic benefit not only to you but also to the state.
Finally, these incentives make it more affordable for people to own an electric vehicle. Unfortunately, affordability is one reason many people cannot afford to transition to alternative fuel vehicles.
How Much Is The EV Registration Fee In MD?
There are no incentives regarding how much it costs to register an electric vehicle in Maryland. Instead, the amount you pay depends on the weight of the car. Most people will pay between $135 to $187 to register a vehicle in the state.
That said, it is important to remember that an electric vehicle is exempt from emissions inspections which can save you a few dollars depending on how much it costs to have those inspections. Gas vehicles do not get that luxury.
Can I Register My Car In Maryland With An Out Of State License?
The answer is yes if you are wondering whether you can register your car in Maryland with an out-of-state license.
Maryland law permits non-residents to register their vehicles in the state, provided they can present proof of ownership and a valid insurance policy. However, it’s worth noting that if you plan to establish residency in Maryland, you must get a Maryland driver’s license within 60 days.
🎓 Disclaimer: this article is accurate at the time of publication in 2023. Please reference the publication date to determine whether any rebates or schemes apply.
Maryland is incredible for those wanting to own an electric vehicle. The excise tax credit on EVs is significantly better than many other states nationwide can offer.
The $3000 tax incentive can be used so long as the vehicle is purchased and titled for the first time between July 1, 2023, and July 1, 2027.
The private sector also offers rebates to residents/businesses who install EV charging stations, and some utilities offer a TOU rate for charging an electric vehicle.