Plug-In Electric Vehicle (PEV) Tax Credit

Qualified PEV purchasers 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:

  • Have a total purchase price not exceeding $60,000;
  • Be propelled to a significant extent by an electric motor that draws electricity from a battery with a capacity of at least five kilowatt-hours (kWh);
  • Have not been modified from original manufacturer specifications; and
  • Be purchased on or after July 1, 2017.

Vehicles purchased new and titled for the first time between July 1, 2017, and July 1, 2020, are eligible for a credit up to $3,000, calculated as $100 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 PEVs website.

(Reference Maryland Statutes, Transportation Code 13-815)