Bill to Extend Maryland EV Tax Credit Moves Forward

UPDATE: Governor Signs Tax Credit Extension

A bill to extend the excise tax credit for plug-in electric vehicles and for an income tax rebate for EV charging stations passed the Maryland House of Delegates (123-11) and now moves to the Senate for consideration.

HB 406, the Clean Cars Act of 2017, proposed by Governor Larry Hogan, is one of several bills that were filed this session that sought to renew the state’s commitment to provide incentives for electric vehicles and charging equipment.

$60,000+ Vehicles Not Eligible

The bill passed by the House will apply to purchases beginning July 1, 2017 and will not apply to electric vehicles that have a purchase price that exceeds $60,000.

Amendment Increased Funding to $3,000,000

Delegate David Fraser-Hidalgo had also sponsored a bill, HB 110, designed to increase the funding for the EV tax credit even more than the Hogan Administration’s proposed 33% increase. The increased funding advocated by Fraser-Hidalgo was recognized in an amendment to extend the available funds an additional 33% to a total of $3,000,000. The available funding for the EV tax credit had been $1,800,000 under the previous program which ran out of money in September, 2016.

Under the amended Clean Cars Act of 2017 approved by the House:

  • $3 million will be allocated for excise tax credits for plug-in electric vehicles
  • $100 credit per kilowatt hour (kWh) of capacity
  • $3,000 maximum credit
  • $60,000 vehicle sales price cap to be eligible for the excise tax credit
  • Battery capacity must be at least five kWh to be eligible
  • Will apply only to new vehicles purchased on or after July 1, 2017
  • $1.2 million for income tax rebates for Electric Vehicle Service Equipment (EVSE)

The final details are subject to change if amendments are added in the Senate.

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