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)