Plug-In Electric Vehicle (PEV) Tax Credit

Purchasers of qualified PEVs may apply for a tax credit 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 of 8,500 pounds or less;
  • 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 (kWh) in the case of a four-wheeled motor vehicle, or at least two and a half kWh in the case of a two- or three-wheeled motor vehicle;
  • Has not been modified from original manufacturer specifications; and
  • Is purchased after October 1, 2010.

Vehicles purchased new and titled for the first time between July 1, 2014, and July 1, 2017, are eligible for a credit up to $3,000, calculated as $125 per kWh of battery capacity.

The credit is returned to the taxpayer in the form of a check from the state. For more information, including the request form, see the Maryland Motor Vehicle Administration's Excise Tax Credit for Plug-In Electric Vehicles website.

(Reference Maryland Statutes, Transportation Code 13-815)

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