In the course of 2023, the State of Maryland opened their very own model of the EV Tax Credit score. Maryland’s EV Tax Credit score is obtainable on EVs bought to be used in Maryland, and the credit score will be claimed by each particular person taxpayers and companies within the state.
In case you are prepared to purchase an electrical car within the state of Maryland (or in the event you purchased one in 2023), you could possibly qualify for each the Federal EV Tax Credit score and Maryland’s state-funded EV tax credit score. Nevertheless, whereas each of those credit exist to encourage EV adoption within the US, they don’t have precisely the identical standards for eligibility.
Let’s stroll via the small print of Maryland’s EV Tax Credit score, who qualifies, which autos are eligible, and the place you could find an EV for value even in the event you don’t qualify for the credit score.
Disclaimer: this text is for informational functions solely. We’re not attorneys or tax advisors; we’re EV consultants. This text will not be meant to supply tax, authorized, monetary, or accounting recommendation. Please examine in along with your monetary and authorized advisors earlier than making transactional selections.
How A lot is the Maryland EV Tax Credit score?
Whereas Funds can be found, you could obtain as much as $3,000 as an excise tax credit score. This quantity is available in a number of tiers based mostly on the kind of EV you purchase:
- As much as $1,000 for electrical bikes (or different two-wheeled plug-in electrical autos)
- As much as $2,000 for 3-wheeled plug-in electrical autos
- As much as $3,000 for 4-wheeled plug-in electrical autos
What’s an excise tax? It’s principally a gross sales tax that’s levied on a selected product. On this case, Maryland has a selected excise tax for car gross sales.
Maryland at present fees an excise tax on new autos* registered within the state at a charge of 6% of the car’s base value (as recorded on the Monroney sticker). The quantity you could obtain as your EV tax credit score is tied to the quantity you pay in excise tax on the time of buy; for instance, a brand new Tesla Mannequin 3 RWD with a base MSRP of $38,990 would incur a further $2,339.40 excise tax so as to be titled and registered within the state of Maryland. Underneath the present program, that quantity ($2,339.40) could be refunded again to you in case your utility to the EV Excise Tax Credit score program is accepted and funding is obtainable.
Not like the Federal Tax Credit score, the Maryland EV Excise Tax Credit score is refundable, and the cash comes from designated funding put aside by the state. Utility to this system occurs post-sale with paperwork accomplished by each you and your dealership. The state recommends that patrons ask dealerships if the state nonetheless has funding for this system earlier than buying.
*The State of Maryland truly levies the car excise tax on all car gross sales and transfers of possession on new or used autos, and the small print can get difficult. You possibly can try Maryland’s Motor Automobile Affiliation web site for extra info.
Who Qualifies for the Maryland Electrical Automobile Tax Credit score?
In case you are a resident of the state of Maryland, you have to be eligible for Maryland’s EV tax credit score.
As of February 21, 2024, the Maryland EV tax credit score has no particular person revenue limitation for eligibility, although that will change sooner or later. For instance, Home Invoice 689 is at present below dialogue and, if handed, would restrict the credit score to center and decrease revenue people (just like the Federal EV Tax Credit score). Nevertheless, this requirement wouldn’t be applied for credit score eligibility in 2023 and 2024.
The credit score is meant just for autos which are titled and used within the state of Maryland, so you’ll be able to’t get the credit score by shopping for the car in Maryland and titling it in one other state. There are not any tips but for a way lengthy you must personal the car to maintain the credit score, however the intent of the legislation is to supply new EV patrons with a tax break (and to not give a tax break to people buying an EV for resale).
You’ll solely be capable of obtain one credit score through the years that this system runs. Nevertheless, in the event you collectively personal a car with another person, solely one in all you has to make use of your tax credit score alternative. Or, in the event you collectively buy two EVs, you’ll be able to every apply your credit score to one in all them.
In case you are shopping for eligible EVs as a enterprise entity, you’ll be able to apply for and obtain as much as ten excise tax credit.
Which Automobiles are Eligible for the Maryland EV Tax Credit score?
Maryland’s EV TAX credit score is just for new electrical car purchases. The EV should be bought, registered and titled within the state after July 1st, 2023 and earlier than July 1st, 2027 (see FAQ on the finish of this text for dialogue on earlier EV purchases and tax credit score applications in Maryland).
With a purpose to be thought of for this system, the car should be a zero-emission, plug-in electrical or gasoline cell electrical car. Plug-in hybrids (PHEVs) are included on this class, too. Plug-in electrical automobiles, vans, and vans should have at the very least a 5 kWh battery to qualify, and bikes have to have at the very least a 4 kWh battery.
After the brand new in-state buy and battery necessities, the principle eligibility concern for receiving the credit score is that the car’s MSRP should be lower than $50,000. Many new—and in style—EVs promote below this value, however this restrict does sadly exclude some car classes. For instance, there are only a few totally electrical vans and solely a handful of electrical SUVs out there under the $50,000 cap.
Listed here are among the top-selling EVs within the US that qualify for the Maryland EV Excise Tax Refund:
Make/Mannequin |
Trim* |
MSRP* |
Estimated Maryland Excise Tax Credit score |
|---|---|---|---|
| Tesla Mannequin Y | Base (RWD), Lengthy Vary | $42,990-$47,990 | $2,579.40-$2,879.40 |
| Tesla Mannequin 3 | All Trim Ranges | $38,990 – $45,990 | $2,339.40-$2,759.40 |
| Chevrolet Bolt (EV) | All Trim Ranges | $27,495-$30,695 | $1,649.70-$1841.70 |
| Ford Mustang Mach-E | Choose, Premium | $43,495-$46,995 | $2,609.70-2,819.70 |
| VW ID.4 | Some Trims Excluded | $37,495-$49,495 | $2,249.70-2,969.70 |
| Hyundai IONIQ 5 | SE, SE Commonplace, SEL | $41,800-$47,400 | $2,508-$2,844 |
| Ford F-150 Lightning | Professional | $49,995 | $2,999.70 |
| Kia EV6 | Gentle, Gentle Lengthy Vary, Wind | $42,600-$48,700 | $2,556-$2,922 |
| Nissan LEAF | All Trim Ranges | $28,040-$36,190 | $1,682.40-$2,171.40 |
*2023 or 2024 MSRP values and trim ranges used the place doable
Word: the $50,000 value cap is set by base MSRP solely, and doesn’t take producer’s rebates or trade-in reductions into consideration. Underneath the present guidelines, even in the event you make a take care of the vendor and pay lower than $50,000 for the EV, the bottom value on the EV’s Monroney sticker is what qualifies or disqualifies you for the excise tax credit score.
How Do I Get the Maryland EV Tax Credit score?
To get the Maryland EV Excise Tax Credit score for an EV bought whereas funding remains to be out there, ship the next paperwork to the Maryland Motor Automobile Administration by way of the electronic mail listed on their web site:
- A accomplished VR-334 kind (accomplished along with your EV supplier)
- A duplicate or picture your EV’s window sticker (known as the Monroney Sticker)
- A duplicate of your EV’s invoice of sale
Don’t Qualify for the Maryland EV Tax Credit score? No Drawback!
Perhaps the electrical car you hope to purchase is over the $50,000 base value restriction for the Maryland electrical car tax credit score (such because the 7-Seater Mannequin Y or the Rivian R1S). Does that imply you’ll be able to’t discover a whole lot on an EV in the event you reside within the State of Maryland? In fact not!
Used EVs are added daily on our website at a variety of costs. From the Ford F-150 Lightning to the Lucid Air, you could find an electrical car that can suit your wants (and your funds) listed on Discover My Electrical.
Take a look at our listings and discover your subsequent experience at the moment!
FAQ: Maryland EV Tax Credit score 2024
Is the Maryland EV Excise Tax Credit score Utilized to Your Yearly Taxes?
No, the Maryland EV Excise Tax Credit score is a refund of taxes that you’ve already paid when buying and registering your EV within the state of Maryland.
What Occurred to the Maryland 2019 Clear Automobile Act?
Funding for the 2019 Clear Automobile Act program in Maryland ran out early on in its implementation, and many candidates didn’t obtain funds. Slightly than deal with these patrons who have been neglected of the first-come, first-serve program, the legislature determined to deal with present EV gross sales and lower-priced electrical autos.
Is There A Maryland Used EV Tax Credit score?
No, you’ll be able to’t get Maryland’s EV Excise Tax Credit score on a used EV below the foundations of the present program (2024). Nevertheless, Maryland’s excise tax credit score legislation is below overview and we aren’t positive what modifications might happen earlier than this system ends. We’ll maintain you posted!
Within the meantime, make sure to try the Federal Used Clear Automobile Credit score on your pre-owned EV tax credit score choices.
Does the Maryland EV Excise Tax Credit score Program Nonetheless Have Funding?
Funding info for this system has not been made publicly accessible on the time this text was written. Presently, you would wish to contact the Maryland Motor Automobile Administration or ask your native EV supplier for extra info on funding availability.
