Maryland Incentives and Laws

Listed below are the summaries of all current Maryland incentives, laws, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:

• State Incentives (7)
• Utility/Private Incentives (2)
• Laws and Regulations (8)

State Incentives

Electric Vehicle Supply Equipment (EVSE) Tax Credit

The Maryland Energy Administration (MEA) offers an income tax credit equal to 20% of the cost of qualified EVSE that meets the definition of qualified alternative fuel vehicle refueling property as set forth in the Internal Revenue Code. The credit may not exceed the lesser of $400 or the state income tax imposed for that tax year. The tax credit is limited to one EVSE system per individual and 30 EVSE systems per business entity. Individuals and businesses must apply to MEA for the credit. Unused credits may not be carried over. MEA may adopt regulations to limit the credit amounts. Total funds currently available for the tax credit are $500,000 for the 2012 tax year and $600,000 for the 2013 tax year. (Reference Maryland Statutes, Tax-General Code 10-729)

Plug-In Electric Vehicle (PEV) Tax Credit

Purchasers of qualified PEVs may apply for a tax credit of up to $2,000 against the imposed excise tax. The tax credit is limited to one vehicle per individual and 10 vehicles per business entity. Vehicles must be registered in Maryland, unless the vehicle manufacturer conforms to applicable state or federal laws or regulations governing clean fuel vehicles or PEVs during the year in which the vehicle was purchased, or the vehicle was originally registered in another state. A qualified vehicle must meet the following criteria:

• Has a gross vehicle weight rating not to exceed 8,500 pounds;
• Can achieve a maximum speed of at least 55 miles per hour;
• Is a two-, three-, or four-wheeled vehicle;
• Is propelled to a significant extent by an electric motor that draws electricity from a battery with a capacity of at least four kilowatt hours in the case of a four-wheeled motor vehicle, or at least 2.5 kilowatt hours in the case of a two- or three-wheeled motor vehicle;
• Has not been modified from original manufacturer specifications; and
• Is purchased between October 1, 2010, and July 1, 2013.

(Reference Maryland Statutes, Transportation Code 13-815)

Electric Truck Purchase Vouchers

The Maryland Energy Administration provides vouchers for the purchase of new all-electric trucks. Eligible vehicles must have a gross vehicle weight rating over 10,000 pounds and be registered for on-road use in the state of Maryland. Vouchers of $20,000 are available for qualified vehicles purchased from a dealership in Maryland or directly from a manufacturer located outside of Maryland. Vouchers of $15,000 are available for qualified vehicles purchased through a dealership located outside of Maryland. All applicants must submit their application for funding by June 15, 2013, limited to five vouchers per motor carrier. The voucher program will end December 31, 2013. For eligibility requirements and application information, see the Maryland Electric Truck Voucher Program website.

Plug-in Electric Vehicle (PEV) High Occupancy Vehicle (HOV) Lane Exemption

Permitted PEVs may operate in Maryland HOV lanes regardless of the number of occupants. Qualified PEVs must be propelled to a significant extent by an electric motor that draws electricity from a battery with a capacity of at least four kilowatt hours. To operate in HOV lanes, PEV owners must obtain a permit from the Maryland Motor Vehicle Administration (MVA). The MVA may charge a permit fee of up to $20 and may issue a limited number of permits. Each year the MVA and the State Highway Administration must report PEV use in HOV lanes to the governor. This exemption expires September 30, 2013. (Reference Maryland Statutes, Transportation Code 25-108)

Cellulosic Ethanol Research and Development Tax Credit

An individual or corporation may claim a credit against the state income tax for 10% of qualified research and development expenses for cellulosic ethanol technology. The total credit may not exceed $250,000 per calendar year. If the credit allowed exceeds the tax liability of the individual or corporation for that taxable year, the credit may be applied for up to 15 future taxable years after the qualified expenses were incurred. This tax credit does not apply to qualified expenses incurred after December 31, 2016. (Reference Maryland Statutes Tax-General Code 10-205j, 10-306f, and 10-726)

Biofuels Production Incentive

Qualified ethanol and biodiesel producers are eligible for production incentives on a per gallon basis. To be eligible for the incentive, the producer must first apply for and receive certification from the Renewable Fuels Incentive Board (Board). Credits are offered to certified producers in Maryland for ethanol or biodiesel produced between December 31, 2007, and December 31, 2017.

Ethanol production credits are as follows: a) $0.20 per gallon of ethanol produced from small grains such as wheat, rye, triticale, oats, and hulled or hull-less barley; or b) $0.05 per gallon of ethanol produced from other agricultural products. The Board may not certify ethanol production credits for more than a total of 15 million gallons per calendar year, of which at least 10 million gallons must be produced from small grains.

Biodiesel production credits are as follows: a) $0.20 per gallon of biodiesel produced from soybean oil (the soybean oil must be produced in a facility or through expanded capacity of a facility that began operating after December 31, 2004), or b) $0.05 per gallon for biodiesel produced from other feedstocks, including soybean oil produced in a facility that began operating on or before December 31, 2004. The Board may not certify biodiesel production credits for more than a total of five million gallons per calendar year, of which at least two million gallons must be from soybean oil produced in a facility as described above.

(Reference Maryland Statutes, Agriculture Code 10-1501 through 10-1507)

Hybrid Electric Vehicle (HEV) Exemption from Vehicle Testing Requirements

Qualified HEVs are exempt from certain mandatory motor vehicle emissions and inspection testing requirements until September 30, 2012, if the vehicle obtains a fuel economy rating from the U.S. Environmental Protection Agency of at least 50 miles per gallon during city driving. (Reference Maryland Statutes, Transportation Code 23-206.3 through 206.4)

Utility/Private Incentives

Electric Vehicle Supply Equipment (EVSE) Incentive - Coulomb Technologies

Coulomb Technologies' ChargePoint America program offers EVSE at no cost to individuals or entities in the Washington, DC metropolitan area. To be eligible for free home charging stations, individuals living within the specified area must purchase a qualified plug-in electric vehicle. Application information is available on the ChargePoint America website. In most cases, installation will be paid for by the EVSE owner; some cities, states, and utilities, however, will provide funding towards installation costs. All participants in the ChargePoint America program must agree to anonymous data collection after installation. Additional restrictions may apply.

Electric Vehicle Supply Equipment (EVSE) Incentive - ECOtality

Through the EV Project, ECOtality offers EVSE at no cost to individuals in the Washington, DC metropolitan area. To be eligible for free home charging stations, individuals living within the specified areas must purchase a qualified plug-in electric vehicle (PEV). Individuals purchasing an eligible PEV should apply at the dealership at the time of vehicle purchase. The EV Project incentive program will also cover most, if not all, of the costs of EVSE installation. All participants in the EV Project incentive program must agree to anonymous data collection after installation. Additional restrictions may apply.

Laws and Regulations

Plug-in Electric Vehicle (PEV) Information Disclosure

The Maryland Motor Vehicle Administration is allowed to provide the address of a registered PEV owner and information about the vehicle to electric companies for their use. (Reference House Bill 1279 and Senate Bill 998, 2012; and Maryland Statutes, State Government Code 10-616)

Plug-in Electric Vehicle (PEV) Infrastructure Promotion

The Maryland Electric Vehicle Infrastructure Council (Council) promotes the use of PEVs in the state. Specific responsibilities of the Council include the following:

• Develop an action plan to facilitate successful integration of PEVs into the Maryland transportation network;
• Assist in developing and coordinating statewide standards for streamlined permitting and installation of electric vehicle supply equipment;
• Recommend a statewide charging infrastructure plan and incentives to support investment in PEVs;
• Develop targeted policies to support fleet purchases of PEVs; and
• Encourage local and regional efforts to promote the use of PEVs.

The Maryland Department of Transportation must provide staff support to the Council with the assistance of the Maryland Energy Administration and the Maryland Public Service Commission. The Council submitted an interim report and recommendations to the governor, and must submit a final report and recommendations by December 1, 2012. The Council will remain in place through June 2013.

Provision for Plug-In Electric Vehicle (PEV) Charging Incentives

By June 30, 2013, the Maryland Public Service Commission (PSC) must establish a pilot program for electric customers to charge PEVs during off-peak hours. The pilot program must include at least two electric companies and provide incentives for residential, commercial, and governmental customers to charge PEVs. The incentives should increase the efficiency and reliability of the electric distribution system and lower electricity use at times of high demand. The incentives may include time-of-use pricing, credits on distribution charges, rebates on the cost of charging systems, demand response programs, or other incentives approved by PSC. (Reference Senate Bill 179, 2011, and Maryland Statutes, Public Utilities Code 7-211)

Alternative Fuel Use Requirement

At least 50% of state vehicles must use a minimum biodiesel blend of 5% (B5). This requirement does not apply to any state vehicles for which the use of biodiesel will void the manufacturer's warranty for that vehicle. Additionally, bi-fuel and flexible fuel vehicles capable of operating on either alternative fuel or conventional fuel must use alternative fuel when it is available. (Reference Maryland Statutes, State Finance and Procurement Code 14-408, and Policies and Procedures for Vehicle Fleet Management)

Idle Reduction Requirement

A motor vehicle engine may not operate for more than five consecutive minutes when the vehicle is not in motion, with the following exceptions: 1) traffic conditions or mechanical difficulties; 2) operation of heating, cooling or auxiliary equipment installed on the vehicle; 3) to bring vehicle to manufacturer's recommended operating temperature; or 4) if idling is necessary to accomplish the intended use of the vehicle. (Reference Maryland Statutes, Transportation Code 22-402)

Low Emission Vehicle (LEV) Standards

Maryland has adopted the California motor vehicle emission standards in Title 13 of the California Code of Regulations. The Maryland Department of Environment may adopt regulations to exempt certain vehicles from the program, including motor vehicles sold for registration outside of Maryland and motor vehicles that would be exempt from the LEV program established under California law. (Reference Maryland Statutes, Environment Code 2-1101 through 2-1108)

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a four-wheeled electric vehicle that has a minimum speed capability of 20 miles per hour (mph) and a maximum of 25 mph. A low-speed vehicle must be registered with the Maryland Motor Vehicle Administration and comply with federal safety standards contained in Title 49 of the Code of Federal Regulations, section 571.500. The State Highway Administration or any local authority may prohibit the use of low-speed vehicles on any controlled access highway in its jurisdiction. Low-speed vehicles are only permitted on highways with a maximum speed limit of up to 30 mph but may, except in certain situations, cross highways for which the maximum speed limit exceeds 45 mph. (Reference Maryland Statutes, Transportation Code 11-130.1, 21-313, 21-1125, and 22-101)

Limited Speed Vehicle Access to Roadways

A limited speed vehicle is defined as a vehicle that is capable of achieving a maximum speed of at least 25 miles per hour (mph) but no more than 55 mph. Limited speed vehicles may only operate on highways on which the maximum speed of the vehicle exceeds the posted speed limit by at least 5 mph. Limited speed vehicles may not be sold without the required limited speed emblems. Additionally, limited speed vehicle purchasers must be informed in writing, of the limitations of vehicle use on highways. (Reference Maryland Statutes, Transportation Code 15-313, 21-804, and 21-805.1)