Maryland Excise Tax Credit for Plug-in Electric Vehicles now in effect
Under the Maryland Clean Cars Act of 2017, the Motor Vehicle Administration has again started to administer the Excise Tax Credit for Plug-in Electric Vehicles (PEVs), as of July 1. A vehicle must meet these conditions to qualify for excise tax credit:
• Has not been modified from the original manufacturer specifications;
• Is acquired for use or lease by the taxpayer and not for resale;
• Has a total purchase price not exceeding $60,000;
• Has a battery capacity of at least 5.0 kilowatt-hours;
• Is bought new and titled for the first time on or after July 1, 2017, but before July 1, 2020.
Other provisions of the law:
• The tax credit is not retroactive;
• Credit is limited to one PEV per individual or 10 per business entity;
• Credit may be claimed for a vehicle only if it is registered in Maryland;
• Hybrid vehicles do not qualify for the excise tax credit.
The excise tax credit is calculated as follows: $100 times the kilowatt hours of the battery capacity of the vehicle, not to exceed $3,000. Vehicles with 30 kilowatt hours and above will only qualify for the maximum credit allowed of $3,000.
Dealers must complete form VR-334 and submit it to Maryland MVA, 6601 Ritchie Highway NE, Room 202, Glen Burnie, MD 21062.