Maryland Clean Cars Act of 2021 Becomes Law

Will Fund Backlog of EV Tax Credit Applications

On May 28, 2021, Governor Hogan announced that he would allow a number of bills to become law without his signature. One of the bills on the list was HB 44, The Clean Cars Act of 2021, which authorizes the state’s EV tax credit funding.

PlugInSites followed the progress of electric vehicle legislation in the Maryland General Assembly this year. About half of the EV-related bills passed. In order to become law, they have to be approved by the Governor. The Governor can either sign the bill or let the bill become law without a signature, simply by not vetoing it.

The Maryland Electric Vehicle Tax Credit

The Clean Cars Act of 2021, as introduced, was to extend the state excise tax credit for Zero Emission Vehicles (ZEVs) for two more years. It also was to fund the backlog of applications from EV purchasers who are on the waitlist from the prior EV tax credit program.

The part of the bill that was to extend the EV excise tax credit was removed because of concern over a provision in the federal COVID-19 relief act that prohibits states from using any of the $195 billion of federal aid “to either directly or indirectly offset a reduction” in net tax revenue.

The bill passed with funding to satisfy the backlog of applicants. This is welcome news for the thousands of Maryland residents who have been waiting on their checks of up to $3,000. Some have been waiting for several years.

The law will extend the EV charging equipment rebate as well as increase the annual funding for that program. The Electric Vehicle Recharging Equipment Rebate Program will be extended for two more years and the funding will increase from $1.2M to $1.8M annually.

For official information about the Maryland Excise Tax Credit for Plug-in Electric Vehicles, visit the MVA Website.