Excise Tax Credit For Plug-In Electric Or Fuel Cell Vehicles To Begin July 1, 2023

To: Dealers
From: MVA Excise Tax Refund Unit

Purpose of memorandum

To advise Maryland dealers of the eligibility requirements to qualify for the electric vehicle (EV) excise tax rebate

Summary

Beginning Saturday, July 1, 2023, the Maryland Department of Transportation Motor Vehicle Administration (MVA) will accept excise tax credit applications for plug-in electric drive or fuel cell electric vehicles.

The vehicle must meet all the qualifications listed below to be eligible for a tax credit rebate:

A “plug-in electric drive vehicle” means a motor vehicle that: 

• 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 and purchased/leased and titled for the first time on or after July 1, 2023, but before July 1, 2027
• The vehicle must be acquired for use or lease by the taxpayer, and not for resale
• The vehicle has a battery capacity of at least 5 kilowatt-hours, or if a motorcycle or auto cycle, has a battery capacity of at least 4.0 kilowatt-hours (applies only to plug-in electric)
• The vehicle has a base purchase price not exceeding $50,000
  * The vehicle base purchase price means the Standard Vehicle Price as printed on the Monroney sticker. This base purchase price does not include: shipping or freight charges; after manufacture items included with the vehicle at the time of purchase; extended warranties; state or federal taxes; registration fees; calculation of a dealer trade-in allowance; dealer discounts or rebates; state, federal, or local government purchase incentives; and vehicle options.

A vehicle base purchase price exceeding $50,000 – even if the total purchase price is lower than $50,000 – will not quality for the EV excise tax rebate.

To submit an EV excise tax rebate application for a customer: 

• Complete and certify an VR-334 Application (Excise Tax Credit Request for Plug-In Electric or Fuel Cell Vehicle)
• Scan the vehicle’s original Monroney sticker 
  Submit completed form & Monroney sticker image/photo to: 
  [email protected]
  
  You may also mail applications to:
  Maryland Motor Vehicle Administration
  Excise Tax Refund Unit
  6601 Ritchie Highway NE Room 202
  Glen Burnie, MD 21062

How to calculate the EV excise tax rebate:

The excise tax credit for eligible vehicles are as follows:

• Up to $3,000 for a zero-emission plug-in electric drive or fuel cell electric vehicle.
• Up to $1,000 for a two-wheeled, zero emission plug in electric drive or fuel cell electric motorcycle.
• Up to $2,000 for a 3-wheeled, zero emission plug in electric drive or fuel cell electric motorcycle.
  Please note that electric vehicles purchased prior to July 1, 2023, are not eligible for the EV excise tax credit under the current program established by the Maryland General Assembly.

For any questions, please contact Vehicle Services: Refund Unit at 410-787-2947