Marylanders who purchased a plug-in electric vehicle since funds were depleted for the $3,000 state excise tax credit have been waiting to see if the legislature will reauthorize funding for the program. Purchasers were encouraged to file a form to reserve a place in the queue if and when additional funding is authorized.
There’s potential good news for those waiting on a Maryland EV tax rebate from a previous purchase and those considering buying an electric car in the future. The Clean Cars Act of 2021 (HB 44) proposes to extend and increase the funding for the Maryland electric vehicle excise tax credit. Annual funding would increase to as much as $26,000,000 through fiscal year 2023 under the proposal by Delegate David Fraser-Hidalgo.
The Clean Cars Act of 2017 authorized an excise tax credit on plug-in electric cars for three years, from July 1, 2017 to June 30, 2020 subject to available funding which was limited to a maximum amount for each fiscal year.
Funding Backlog
Funds for the Maryland excise tax credit usually ran out early and applications were then held until the next round of funding was released and paid in the order that applications were received by the MVA. Satisfying the ever growing backlog meant that each year’s funding would run out sooner than the last. In May, 2019, a month before the release of the FY 2020 funds, the entire $6 million allocated for the final year authorized by the legislation was already spoken for by applicants on the waitlist who had already purchased.
In January, 2020, the Clean Cars Act of 2020 was introduced to extend the program for another three years. It also proposed to increase the annual funding from $6,000,000 to $12,000,000. Unfortunately, the bill didn’t pass before the Maryland General Assembly adjourned early due to COVID-19. In effect, the backlog of EV buyers waiting for funding to receive a rebate check extends back to May, 2019 at this point.
Maryland Clean Cars Act of 2021
Under the proposed Clean Cars Act of 2021:
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