If you plan to buy a plug-in electric vehicle in Maryland soon, you may have to wait until July to have your excise tax credit refund processed. According to the Maryland Motor Vehicle Administration, the funds for the current fiscal year are now depleted. The MVA says that no additional refunds will be processed until July, 2019 when they will then be processed in the order that the applications are received.
This bulletin to auto dealers is dated November 19, 2018:
Please be advised, effective immediately the $3 million funding authorized by the legislation for the Plug-In Electric Vehicle Excise Tax Credit for fiscal year 2019 are depleted.
We are currently processing applications that have already been received that will utilize the remaining funding. Applications will be processed in the order they were received. Once all funds are exhausted, no additional refunds will be issued until July 1, 2019 (fiscal year 2020) when additional funds become available.
Governor Hogan is committed to fully funding the Plug-In Electric Vehicle Excise Tax Credit in next year’s budget, pending legislative approval. This commitment is part of the Hogan Administration’s pledge to make the purchase and use of electric vehicles more affordable and convenient, encouraging Maryland consumers and businesses to invest in this environmentally-friendly mode of travel.
You must alert your customers to this information prior to their purchase of an electric vehicle.
The Maryland Clean Cars Act of 2017, signed by Governor Larry Hogan, extended the prior Electric Vehicle Tax Credit program through fiscal year 2020. In an attempt to create more certainty for car dealers and buyers by having the available funding last through the end of the fiscal year, the funding was increased by over 30% and the terms were changed slightly. Vehicles with a sales price over $60,000 no longer qualify and the credit amount was reduced from $125 per kWh of vehicle battery capacity to $100 per kWh. The maximum tax credit per vehicle remains $3,000.
According to Maryland MVA, the state’s EV Excise Tax Credit program has funded over $7.2 million in rebates to help place more than 2,500 electric vehicles on the road. There are currently 15,074 electric and plug-in hybrid vehicles registered in Maryland.
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