Hybrid and Electric Vehicle Excise Tax Credit

Expired: 07/01/2004

The Maryland Clean Energy Incentive Act, effective July 1, 2000, through July 1, 2004, provides tax credits against the 5% vehicle excise tax, up to $2,000 for EVs and up to $1,000 for qualifying HEVs for model year 2000 and later. The credit values for HEVs are:

Portion of Maximum Available Power Supplied
by Rechargeable Energy Storage System

Amount of Credit
5 to 10%Up to $250
10 to 20%Up to $500
20 to 30%Up to $750
At least 30%Up to $1000

The maximum credit amount as detailed above may be increased for HEVs that actively employ a regenerative braking system that supplies to the rechargeable energy storage system at least 20% of the energy available from braking in a typical 60 miles per hour (mph) to zero mph braking event:

Portion of Energy Available Supplied to Energy Storage
System by Regenerative Braking System

Additional Credit Allowed
20 to 40% $125
40 to 60% $250
At least 60%$500

The vehicles must be four-wheeled, registered in Maryland, original equipment manufactured (OEM), and not more than 8,500 pounds (lbs.) unloaded Gross Vehicle Weight (GVW). They must also meet the current vehicle exhaust standards set under the National Low Emission Vehicle Program for gasoline powered passenger cars. In order to claim a credit for an EV, the owner must first meet any state or federal laws or regulations governing clean-fuel vehicle or EV purchases applicable during the calendar year in which the vehicle is titled. (Reference Annotated Code of Maryland, Section 13-815 of the Transportation Article)

Jurisdiction: Maryland

Type: State Incentives

See all Maryland Laws and Incentives.