Maryland Laws and Incentives

Listed below are the summaries of all current Maryland laws, incentives, 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

Electric Vehicle Supply Equipment (EVSE) Rebate Program

The Maryland Energy Administration (MEA) offers an EVSE rebate program to an individual, business, or state or local government entity for the costs of acquiring and installing qualified EVSE. Between July 1, 2017, and June 30, 2020, rebates for 40% of the costs of acquiring and installing qualified EVSE, or up to the following amounts:

Qualified EntityAmount
Individual$700
Business or State or Local Government$4,000
Retail Service Station Dealer$5,000

Applicants must demonstrate compliance with state, local, and/or federal law that applies to the installation or operation of qualified EVSE. Other requirements may apply. Total funding for each fiscal year will not exceed $1,200,000. For more information, see MEA's EVSE Rebate Program page.

(Reference Maryland Statutes, Business Regulation Code 10-101, and State Government Code 9-2009)

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)

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

Permitted PEVs may operate in any Maryland HOV lanes regardless of the number of occupants. Qualified PEVs must have a maximum speed capability of at least 65 miles per hour. Permitted hybrid electric vehicles (HEVs) may operate in the Route 50 HOV lane only, regardless of the number of occupants. To operate in HOV lanes, PEV and HEV owners must obtain a permit from the Maryland Department of Transportation Motor Vehicle Administration (MDOT MVA). The cost of the permit may not exceed $20. Each year the MDOT MVA and the State Highway Administration must report PEV use in HOV lanes to the governor. This exemption expires September 30, 2019, for HEVs and September 30, 2022, for PEVs. For more information, see the HOV Permit Issuance for PEVs page. (Reference House Bill 714, 2018, and Maryland Statutes, Transportation Code 25-108 and 21-314)

Alternative Fuel Infrastructure Grants

The Maryland Energy Administration administers the Maryland Alternative Fuel Infrastructure Program (AFIP), which provides grants to plan, install, and operate public access alternative fueling and charging infrastructure. Only Maryland-based private businesses are eligible, and projects must take place in the state. Grant award amounts are based on the alternative fuel technology and are capped at 50% of project costs. Applicant cost share must be at least 50%.

Station TypeMaximum Grant Award per Station
DC Fast Charger$55,000
Ethanol$35,000
Hydrogen$300,000
Natural Gas$500,000
Propane$100,000

Applications are currently not being accepted (verified May 2018). For more information, including application requirements, see the Maryland AFIP Program website.

Alternative Fuel Vehicle (AFV) Voucher Program

The Maryland Energy Administration (MEA) administers the Maryland Freedom Fleet Voucher (FFV) Program, which provides vouchers for the purchase of new and converted AFVs registered in Maryland. Eligible vehicles include purchased or leased light-, medium-, and heavy-duty dedicated natural gas, propane, hybrid electric, plug-in electric, and hydraulic hybrid vehicles. Vehicles must be used by commercial, non-profit, or public entities. Voucher amounts are based on gross vehicle weight rating and are capped at 50% of the vehicle's incremental cost; the cap does not apply to plug-in electric vehicles. Funds are not guaranteed until voucher agreements are fully executed. Applications are currently not being accepted (verified May 2018). For more information, including application requirements, see the Maryland FFV Program website.

Innovative Transportation Project Competitive Grant Program

The Maryland Energy Administration (MEA) provides funds to deploy "game changing" or innovative transportation projects that increase the use of alternative fuel vehicles, such as workplace charging. Projects must be located in Maryland and have the potential to significantly advance the clean energy market through commercially available technologies. Projects can include clean energy conversion technologies, systems, or applications used in other states or regions of the world, but not commonly used in Maryland. Grant awards are available for up to 30% of the total project cost with individual awards ranging from $50,000 to $250,000. The program is not currently accepting applications (verified May 2018). For more information, including program application and award requirements, see the MEA Game Changer Competitive Grant Program website.

Idle Reduction Weight Exemption

Any motor vehicle equipped with a qualified auxiliary power unit (APU) or idle reduction technology may exceed the state gross, axle, tandem, or bridge weight limits by up to 550 pounds to account for the weight of the technology. The additional weight may not exceed the actual weight of the idle reduction unit. The vehicle operator must be able to provide written certification of the weight of the APU or idle reduction technology, and demonstrate that the technology is fully functional. (Reference Maryland Statutes, Transportation Code 24-109)

Utility/Private Incentives

Plug-In Electric Vehicle (PEV) Charging Rate - BGE

Baltimore Gas and Electric Company (BGE) offers a time-of-use (TOU) rate for BGE residential customers who purchase or lease a PEV. The TOU rate, Schedule EV, applies to the energy used for the entire residence during a billing period. Participation requires a meter capable of measuring TOU data. For more information, see Schedule EV.

Plug-In Electric Vehicle (PEV) Charging Rate Incentive - Pepco

Pepco offers a time-of-use rate to all qualified Pepco residential customers in Maryland who own or lease a PEV. For more information, see Pepco's Plug-In Electric Vehicle Charging website.

All-Electric Vehicle (EV) Rebates - BGE

Baltimore Gas and Electric (BGE) customers are eligible for a $10,000 rebate for the purchase of a new BMW i3 or i3s. Rebates are available through July 31, 2018. To receive the rebate, bring the Customer Information Form and a recent BGE utility bill to a local BMW dealer.

BGE customers and eligible employees can receive a $3,000 rebate for the purchase of a new 2018 Nissan LEAF. To receive the rebate, show proof of BGE employment or a copy of a BGE bill at participating Nissan dealerships with the Nissan LEAF Rebate Flyer. Rebates are available through June 30, 2018.

For more information, visit BGE's Electric Vehicles webpage.

All-Electric Vehicle (EV) Rebates - Pepco

Pepco customers are eligible for a $10,000 rebate for the purchase of a new BMW i3 or i3s. Rebates are available through July 31, 2018. To receive the rebate, bring the Customer Information Form and a recent Pepco utility bill to a local BMW dealer.

Pepco customers and eligible employees can receive a $3,000 rebate for the purchase of a new 2018 Nissan LEAF. To receive the rebate, show proof of Pepco employment or a copy of a Pepco bill at participating Nissan dealerships with the Nissan LEAF Rebate Flyer. Rebates are available through June 30, 2018.

For more information, visit Pepco's Electric Vehicles webpage.

All-Electric Vehicle (EV) Rebates - Delmarva Power

Delmarva customers are eligible for a $10,000 rebate for the purchase of a new BMW i3 or i3s. Rebates are available through July 31, 2018. To receive the rebate, bring the Customer Information Form and a recent Delmarva utility bill to a BMW dealership.

Delmarva customers and eligible employees can receive a $3,000 rebate for the purchase of a new 2018 Nissan LEAF. To receive the rebate, show proof of Delmarva employment or a copy of a Delmarva bill at participating Nissan dealerships with the Nissan LEAF Rebate Flyer. Rebates are available through June 30, 2018.

For more information, visit Delmarva's Electric Vehicles webpage.

Laws and Regulations

Electric Vehicle Supply Equipment (EVSE) Regulation Exemption

Owners and operators of EVSE are not subject to state regulation as electricity suppliers or public service companies. For the purpose of this regulation, owners and operators of EVSE are considered retail electric customers. (Reference Maryland Statutes, Public Utility Code 1-101(j))

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 Maryland Statutes, General Provisions 4-320)

Zero Emission Vehicle (ZEV) State Fleet Goal

State agencies must increase the number of ZEV acquisitions in light-duty fleets to at least 25% of annual fleet purchases by 2025. To the extent feasible, ZEV acquisitions should increase by 3% each year from fiscal year (FY) 2016 through FY 2020, so that by FY 2020 at least 15% of annual light-duty fleet purchases are ZEVs. The state fleet must annually report ZEV purchases to the governor, the Maryland Energy Administration, and the Maryland Department of the Environment. (Reference Executive Order 01.01.2015.02, 2015)

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. For more information, including interim reports, see the Maryland Electric Vehicle Infrastructure Council page. (Reference Maryland Statutes, Transportation Code 11-145.1)

Zero Emission Vehicle (ZEV) Deployment Support

Maryland joined California, Connecticut, Massachusetts, New Jersey, New York, Oregon, Rhode Island, and Vermont in signing a memorandum of understanding (MOU) to support the deployment of ZEVs through involvement in a ZEV Program Implementation Task Force (Task Force). In May 2014, the Task Force published a ZEV Action Plan (Plan) identifying 11 priority actions to accomplish the goals of the MOU, including deploying at least 3.3 million ZEVs and adequate fueling infrastructure within the signatory states by 2025. The Plan also includes a research agenda to inform future actions. On an annual basis, each state must report on the number of registered ZEVs, the number of public electric vehicle supply equipment (EVSE) and hydrogen fueling stations, and available information regarding workplace fueling for ZEVs.

In June 2018, the Task Force published a new ZEV Action Plan for 2018-2021. Building on the 2014 Action Plan, the 2018 Action Plan makes recommendations for states and other key partners in five priority areas:

  • Raising consumer awareness and interest in electric vehicle technology;
  • Building out a reliable and convenient residential, workplace and public charging/fueling infrastructure network;
  • Continuing and improving access to consumer purchase and non-financial incentives;
  • Expanding public and private sector fleet adoption; and
  • Supporting dealership efforts to increase ZEV sales.

For more information, see the Multi-State ZEV Task Force website.

Alternative Fuel Use Requirement

At least 50% of state vehicles using petroleum diesel fuel must use a minimum blend of 5% biodiesel (B5) or other biofuel approved by the U.S. Environmental Protection Agency (EPA) as a fuel or fuel additive. This requirement does not apply to any state vehicles for which the use of biodiesel or other biofuel will void the manufacturer's warranty for that vehicle. Biodiesel fuel is defined as a fuel composed of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats that is designated B100 or a blend of biodiesel that meets the requirements of ASTM specification D6751. 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)

Alternative Fuel Vehicle (AFV) Access to Tunnels

An AFV powered by propane or natural gas may only use the Baltimore Harbor Tunnel and the Fort McHenry Tunnel if the vehicle has a dedicated alternate fuel system installed by the manufacturer of the vehicle or a fuel system that has been properly converted to an alternate fuel system, conforms to applicable federal regulations and industry standards, has a fuel capacity that does not exceed 150 pounds, and displays all proper markings and symbols. (Reference Code of Maryland Regulations 11.07.01.03)

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) when traffic conditions or mechanical difficulties do not allow the vehicle to operate; 2) when it is necessary to operate 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)

Zero Emission Vehicle (ZEV) Sales Requirements and Low Emission Vehicle (LEV) Standards

Maryland has adopted the California motor vehicle emissions standards and compliance requirements specified in Title 13 of the California Code of Regulations. Manufacturers must meet the greenhouse gas emissions standard and the ZEV production and sales requirements. 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. For more information, see the Maryland Clean Cars Program website. (Reference Maryland Statutes, Environment Code 2-1101 through 2-1106)

Aftermarket Alternative Fuel Vehicle (AFV) Conversion Requirements

Conventional original equipment manufacturer vehicles altered to operate on propane, natural gas, methane, ethanol, or electricity are classified as aftermarket AFV conversions. All vehicle conversions for vehicles certified only to California Air Resources Board (CARB) standards must meet current applicable CARB standards for aftermarket conversions. However, Environmental Protection Agency (EPA) certified conversion kits may be used on EPA 50-state certified vehicles and vehicles with dual-certification that are 14,000 pounds or less. (Reference Code of Maryland Regulations 26.11.34)

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a four-wheeled electric vehicle that has a maximum speed capability of 20 miles per hour (mph) to 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 speed limit of up to 30 mph, but may, except in certain situations, cross highways for which the maximum speed limit exceeds 45 mph if the intersection is controlled by a traffic light or a four-way stop sign. (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)