Maryland Lawmakers Seek Retroactive EV Tax Credits for 2017 Funding Gap

Maryland Capitol Annapolis

Some Maryland EV Buyers Didn’t Get State Tax Credit in 2017

Relief may finally be coming for Maryland Electric Vehicle drivers who missed out on the State Tax Rebate program when funding ran out before the end of fiscal year 2017 which ended on 6/30/2017.

A bill sponsored by Maryland Delegate Marc Korman, who represents District 16 in Montgomery County, proposes to retroactively give rebates to individuals who purchased a plug in electric vehicle in fiscal year 2017 but did not receive a state rebate after the program ran out of funds.

Maryland HB 72, the Extension of Electric Vehicle Incentives Act, would also provide rebates to certain individuals who did not receive a qualified rebate under the Fiscal Year 2017 Electric Vehicle Recharging Equipment Rebate Program after that program also ran out of funds.

Delegate Korman’s bill would authorize an applicant to receive a refund of excise tax imposed for a qualified plug–in electric vehicle if the vehicle was purchased new and titled for the first time on or after July 1, 2016, but before July 1, 2017 if the applicant is the vehicle’s original owner and owns the vehicle when applying for the tax credit.

The Maryland Electric Vehicle Excise Tax Credit program is funded with an allocated amount for each fiscal year which runs from July 1 to June 30.

The number of EVs purchased in recent years has grown which has caused the funds to be depleted early. Funds for fiscal year 2017 were depleted by September, 2016. Normally, the tax credits would be paid to previous fiscal year applicants once funds were released on July 1.

However, the program in effect at the time had a sunset date for the end of fiscal year 2017. The Maryland General Assembly passed The Clean Cars Act of 2017 which modified the EV excise tax credit program in hopes of making the funds last longer. It did not contain a provision to authorize funds for those who fell through the gap.

Lawmakers heard from many of those who were affected. Last year Senator Roger Manno sponsored a bill (SB 177) similar to this one that passed the Senate but did not make it to the House.

HB 72 – Extension of Electric Vehicle Incentives Act has 32 co-sponsors and has been referred to the House Environment and Transportation Committee.

If it is enacted, it will take effect July 1, 2019 and remain effective for one year until June 30, 2020.

You can follow HB 72 as well as other Electric Vehicle related bills on the PlugInSites 2019 EV Legislation Tracker.