Chapter 40. Electric Vehicle and Low Emission Vehicle Excise Tax Credit
Regulation .01 Purpose.LinkCopy Citation
This chapter applies to plug-in electric drive vehicles and zero-emission plug in electric drive vehicles:
A.
Applications for excise tax credits; and
B.
Annual surcharge fees.
Regulation .02 Incorporation by Reference.LinkCopy Citation
In this chapter, 15 U.S.C. §1232, as amended, is incorporated by reference.
Regulation .03 Definitions.LinkCopy Citation
A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Administration” means the Motor Vehicle Administration.
(2)
“Autocycle” has the meaning stated in Transportation Article, §11-103.4, Annotated Code of Maryland.
(3)
Base Purchase Price.
(a)
“Base purchase price” means the standard vehicle price as printed on the Monroney sticker.
(b)
“Base purchase price” does not include:
(i)
Shipping or freight charges;
(ii)
After manufacture items included with the vehicle at the time of purchase;
(iii)
Extended warranties;
(iv)
State or federal taxes;
(v)
Registration fees;
(vi)
Calculation of a dealer trade-in allowance;
(vii)
Dealer discounts or rebates;
(viii)
State, federal, or local government purchase incentives; or
(ix)
Vehicle options.
(4)
“Excise tax” has the meaning stated in Transportation Article, §13-809, Annotated Code of Maryland.
(5)
“Fuel cell electric vehicle” has the meaning stated in Transportation Article, §11-125.1, Annotated Code of Maryland.
(6)
“Monroney sticker” means the label required under 15 U.S.C. §1232, as amended.
(7)
Plug-in Electric Drive Vehicle.
(a)
“Plug-in electric drive vehicle” has the meaning stated in Transportation Article, §21-1003.2, Annotated Code of Maryland; and
(b)
“Plug-in electric drive vehicle” is not a zero-emission plug in electric drive vehicle.
(8)
Zero-Emission Plug-in Electric Drive Vehicle.
(a)
“Zero-emission plug-in electric drive vehicle” has the meaning stated in Transportation Article, §13-815, Annotated Code of Maryland; and
(b)
“Zero-emission plug-in electric drive vehicle” is not capable of producing tailpipe emissions.
Regulation .04 Electric Vehicle Excise Tax Credit Eligibility.LinkCopy Citation
A.
For determining eligibility of a zero-emission plug-in electric drive vehicle, fuel cell electric vehicle, zero-emission electric motorcycle, or zero-emission autocycle for a vehicle tax credit, the Administration shall use the base purchase price of the vehicle.
B.
Subject to available funding, the vehicle owner is eligible to apply to the Administration for an applicable excise tax credit if the following conditions are met:
(1)
The vehicle was purchased new and titled for the first time on or after July 1, 2023, but before July 1, 2027;
(2)
The vehicle has not been modified from original manufacturer specifications;
(3)
The vehicle is acquired for use or lease by the taxpayer and not for resale;
(4)
The vehicle has a total base purchase price not exceeding $50,000;
(5)
If applicable, the vehicle has a battery capacity of at least 5.0 kilowatt hours; and
(6)
The applicant is either:
(a)
An individual who has not received a previous excise tax credit for the purchase of a vehicle in accordance with Transportation Article, §13-815; Annotated Code of Maryland; or
(b)
A business entity that has not received excise tax credits for the purchase of more than 10 vehicles in accordance with Transportation Article, §13-815, Annotated Code of Maryland.
C.
Subject to available funding, the credit shall be issued in an amount in accordance with Transportation Article, §13-815, Annotated Code of Maryland.
Regulation .05 Annual Surcharge Fee.LinkCopy Citation
A.
In addition to the registration fee, a surcharge fee shall be assessed for plug-in electric drive vehicles and zero-emission plug-in electric drive vehicles pursuant to Transportation Article, §13-956, Annotated Code of Maryland.
B.
Beginning August 1, 2026, this surcharge shall be adjusted annually for inflation. The inflation adjustment shall correspond to the growth in the Consumer Price Index, rounded to the nearest whole dollar, for all urban consumers as determined by the Comptroller in accordance with Tax General Article, §9-305, Annotated Code of Maryland.
Chapter annotations
Authority: Transportation Article §§12-104(b), 11-103.4, 13-815, and 13-956, Annotated Code of Maryland
History: Effective date:
History: Regulations .01—.04 adopted as an emergency provision effective July 19, 2023 (50:16 Md. R. 724); adopted permanently effective October 16, 2023 (50:20 Md. R. 888)
History: Regulation .01 amended effective May 26, 2025 (52:10 Md. R. 436)
History: Regulation .03B amended effective May 26, 2025 (52:10 Md. R. 436)
History: Regulation .04A amended effective May 26, 2025 (52:10 Md. R. 436)
History: Regulation .05 adopted effective May 26, 2025 (52:10 Md. R. 436)