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Maryland Electric Laws and Incentives


State Incentives

Hybrid Electric Vehicle (HEV) and Electric Vehicle (EV) Tax Credit

A tax credit is allowed against the excise tax imposed for the purchase of qualified HEVs and EVs. For qualified EVs, the tax credit may not exceed $2,000. For qualified HEVs, the credit may not exceed: a) $250 if the vehicle battery provides at least 5% but less than 10% of maximum power available; b) $500 if the vehicle battery provides at least 10% but less than 20% of maximum power available; c) $750 if the vehicle battery provides at least 20% but less than 30% of maximum power available; d) $1,000 if the vehicle battery provides at least 30% of maximum power available. Additional tax credits of $125 to $500 are available for HEVs equipped with regenerative braking systems that meet certain requirements, depending on the amount of energy created from breaking. A qualified EV must meet the definition set forth in the Internal Revenue Code. A qualified HEV must meet the current vehicle exhaust standard set under the federal Tier 2 program for passenger vehicles. (Reference Maryland Statutes, Transportation Code 13-815)

State Laws and Regulations

Alternative Fuel Vehicle (AFV) Acquisition Requirements

Maryland established an AFV goal under the plan for 'Sustaining Maryland's Future with Clean Power, Green Buildings and Energy Efficiency.' The state will revise fleet policy and purchasing guidelines to offer more flexibility in purchasing, where practical, low emission vehicles and AFVs for its fleet. The state must ensure that an average of 50% of the fuel used to operate bi-fuel and flexible fuel vehicles are alternative fuel. The state must also help develop the refueling and maintenance infrastructure required to make using certain types of AFV use practical. The state may provide technical assistance and other incentives to use clean technology, where practical, in state transit fleets. (Reference Executive Order 01.01.2001.02 (PDF 49 KB)) Download Adobe Reader

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 state 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)