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Frequently Asked Questions 

  

 

 
FAQ's

 

I.  What is the Excise Tax Credit for Plug-in Electric Vehicles?  Am I eligible?
 
II.  Can I drive my plug-in electric vehicle in the HOV lanes?  Do I need a
      special permit?
 
III. 
Are there any programs to help with charger costs?
 

 
 
1.  What is the Excise Tax Credit for Plug-in Electric Vehicles?  Am I
      eligible?

You may be eligible for a one-time excise tax credit, up to $1000.00, when you purchase a qualifying plug-in electric vehicle. Effective July 1, 2014 through June 30, 2017, an individual may be entitled to receive an excise tax credit on a qualifying plug-in electric vehicle regardless of whether they own lease the vehicle. Business entities may also qualify for the tax credit on up to ten vehicles.

Credits requests received are processed subject to the availability of funds.

The criteria for a qualifying plug-in electric vehicles are as follows:
 

  • The vehicle must be made by a manufacturer primarily for use on public streets, roads and highways. 
  • The vehicle cannot be modified from the manufacturer's specifications. 
  • The vehicle must be a new vehicle purchased from a dealer. 
  • The vehicle must be acquired for use or lease by the taxpayer, and not for resale. 
  • The shipping weight of the vehicle may not exceed 8,500 pounds. 
  • The maximum speed capability must be at least 55 miles per hour. 
  • The vehicle must be capable of being recharged from an external source of electricity. 
  • The vehicle must be propelled to a significant extent by an electric motor that draws electricity from a battery.
     

Credit requests received are subject to the availability of funding and will be calculated as follows:

The product of $125. times the kilowatt-hours of battery capacity of the vehicle not to exceed $3000. Vehicles with 25 kilowatt-hours and above will only qualify for the maximum allowed of $3000.

If you have purchased a plug-in electric vehicle from a Maryland dealer, the dealer will assist you with completing the proper form for the tax credit. If you purchased a new plug-in electric vehicle from an out of state dealer, you may download the Excise Tax Request for a Plug-in Electric Vehicle(VR-334) form.
 

There is no fee for applying for the tax credit.
 
Motor Vehicle Administration
Mail In Title Unit
6601 Ritchie Highway, NE, Room 30
Glen Burnie, MD 21062

 
For telephone questions:

MVA Customer Service Center: 1-800-950-1MVA(1682)
TTY/Hearing Impaired: 1-800-492-4575
Out-of-State: 1-301-729-4550

 

 
2.  Can I drive my plug-in electric vehicle in the HOV lanes?  Do I
     need a special permit?

Drivers of plug-in electric vehicles, titled and registered in Maryland, will be allowed to use the HOV lanes in Maryland regardless of the number of passengers, providing they obtain and display an HOV permit on the vehicle.
 
The vehicle owner(s) must complete the Application for Plug-in Electric Vehicle HOV Permit (form VR-335).  You may download the form for the permit from Motor Vehicle Administration website at:

 
http://www.mva.maryland.gov/Resources/VR-335.pdf
 
 
The permit will be valid from October 1, 2010 through September 30, 2017 and will be issued by:

  • The Vehicles Services Division, Room 104 at the Glen Burnie, MVA. and Mail application to the Glen Burnie MVA, Room 104.
     
  • The vehicle must meet all of the qualifications listed below in order to use the HOV lanes in Maryland:
     
  • The vehicle must be made by a manufacturer and be manufactured primarily for use on public streets, roads and highways;
     
  • The vehicle cannot have been modified from the original manufacturer's specifications;
     
  • Is rated at not more than 8,500 pounds unloaded gross vehicle weight;
     
  • Has a maximum speed capability of at least 65 miles per hour;
     
  • Is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of not less than 4 kilowatt hours for 4-wheeled vehicles and not less than 2.5 kilowatt hours for 2 or 3-wheeled motor vehicles;
     
  • The vehicle is capable of being recharged from an external source of electricity.

Note:  If you are planning to purchase a plug-in electric vehicle from a Maryland dealer, the dealer can issue you an HOV permit at the time of purchase.  There is no fee for the HOV permit.  However, the vehicle owner(s) must complete the Application for Plug-in Electric HOV Permit (form VR-335).

 
Motor Vehicle Administration
Vehicle Services Unit, Room 104
6601 Ritchie Highway, N.E.
Glen Burnie, MD 21062
 
For telephone questions:
MVA Customer Service Center:  1-800-950-1MVA(1682)
TTY/Hearing Impaired: 1-800-492-4575
Out-of-State: 1-301-729-4550
 

  

3.  Are there any programs to help with charger costs?

Yes, through the Electric Vehicle Supply Equipment Tax Credit Program residents and businesses can receive a state income tax credit, up to $400, for purchasing an electric vehicle charging station, also known as Electric Vehicle Supply Equipment (EVSE).  In order to receive these credits, eligible participants must apply for a credit certificate with the Maryland Energy Administration (MEA), which will issue certificates on a first-come, first-served basis.

  
How to apply:

  • Attach related documentation, as specified in the application.
     
  • Send the application and documentation to:
     
  • Attention – EVSE Tax Credit Program
     
  • Maryland Energy Administration
     
  • 60 West Street, Suite 300
     
  • Annapolis, MD 21401
     
  • Qualified EVSEs must be placed in service on or after July 1, 2011, but before Jan. 1, 2014.
     
  • Tax credits may not exceed the applicant’s state income tax.
     
  • Tax credits are calculated by multiplying 20% by the purchase price of your EVSE.
     
  • Tax credits may not exceed $400.
     
  • EVSEs must be installed in the State of Maryland.
     
  • EVSE installation costs shall not be used in calculating tax credit amounts.
     
  • Tax credits are nontransferable, and may not be carried over to another taxable year.
     
  • Individuals are limited to one (1) tax credit.
     
  • Business entities are limited to thirty (30) tax credits.
     
  • Business entities applying for more than four (4) credits must fill out the application form as well as EVSE Form A.
     
  • Eligible EVSEs include: property used for the recharging of motor vehicles propelled by electricity that meet the definition of qualified alternative fuel vehicle refueling property in § 30C of the internal revenue code.
     
  • Qualified EVSEs must be certified by a nationally recognized testing laboratory (NRTL). Visit the Occupational Safety & Health Administration websitefor a list of nationally recognized testing laboratories (NRTLs).
     
  • Someone from MEA or an authorized representative may contact you in the future regarding driving and charging behavior as well as overall electric drive satisfaction.
 

To claim your tax credit:
 

  • Form 500CR must be completed and submitted with your Maryland State income tax return. If the business is a pass-through entity, Form 500CR must be prepared for the pass-through entity and submitted with the entity's income tax return. A modified federal Schedule K-1 provided by the pass-through entity to its members must separately state their shares of the credit.
     
  • Individuals or entities must attach the credit certificate provided by MEA to Form 500CR submitted with their personal (Form 502), corporate (Form 500) or pass-through entity (Form 510) income tax returns.
     
  • Note: In general, 500CR is used as a business tax form but individuals may use it to claim certain individual tax credits. The Electric Vehicle Recharging Tax Credit Program falls under this scenario.
     
  • Credit certificates must be attached to your tax return for Comptroller processing.
 
 

For more information about the program, contact Chris Rice at: crice@energy.state.md.us.

 

Last Updated on

06/17/2014