Md. EV tax credit extended to cars sold by June 2014

Md. EV tax credit extended to cars sold by June 2014

The exemption of electric vehicles in Maryland from the 6 percent motor vehicle excise tax was extended in the recently concluded session of the General Assembly to June 30, 2014. Under the bill, the maximum exemption may not exceed:

$600 for a vehicle with a battery capacity of 4 to 10 kilowatt-hours,

$700 if the battery has 10.1 to 15 kWh, or

$1,000 if the battery has 15 or more kWh.

The bill extends through tax year 2016 the current state income tax credit of up to 20 percent of the cost of qualified EV recharging equipment used by a business or individual. The credit may not exceed the lesser of $400 for each recharging system or the state income tax liability in the tax year. Any unused part of the credit may not be carried over to another tax year. The credit is limited to one recharging system per individual and 30 recharging systems per business.

(Thanks for Michael Johansen of Rifkin, Livingston, Levitan & Silver for this summary.)