Titling - Excise Tax Credit for Plug-in Electric Vehicles

Please be advised, funding for the one-time excise tax credit for a qualifying plug-in electric or fuel electric vehicle is NO LONGER AVAILABLE as of July 1, 2020 (Fiscal Year 2021). 

We are currently holding all applications that have been submitted, and continuing to accept applications for vehicles that qualify for Fiscal Year 2020 funding under HB 1246/Ch. 13 of 2019. No funding has been authorized for Fiscal Year 2022. If additional funding becomes available, applicants will be awarded the credit in the order of application receipt.

If you have any questions please email us at: MVAElectricRefunds@mdot.maryland.gov


You may be eligible for a one-time excise tax credit, up to $3000.00, when you purchase a qualifying plug-in electric or fuel cell electric vehicle. Effective July 1, 2017 through June 30, 2020, an individual may be entitled to receive an excise tax credit on a qualifying plug-in electric or fuel cell electric vehicle regardless of whether they own or lease the vehicle. Business entities may also qualify for the tax credit on up to ten vehicles.

Subject to available funding, a credit is allowed against the excise tax imposed for the purchase of a plug-in electric or fuel cell electric vehicle and the credit may not exceed the lesser of the amount of excise tax paid or $3,000.

The criteria for a qualifying plug-in electric or fuel cell 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 and titled for the first time on or after July 1, 2017, but before July 1, 2020.
  • 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 5.0 kilowatt-hours (applies only to plug-in electric)
  • The vehicle has a total purchase price not exceeding $63,000.

Note: The total purchase price of a vehicle is the price of a vehicle agreed on by the buyer and the seller, including any dealer processing charge, shipping or freight charges, less an allowance for trade in.

Credit request received are subject to the availability of funding and credit may not exceed the lessor of the following amounts:

  • The amount of excise tax paid for the purchase of the vehicle; or
  • $3,000.

If you have purchased a plug-in electric or fuel cell electric vehicle from a Maryland dealer, the dealer will assist you with completing the proper form for the tax credit, you may download the Excise Tax Request for a Plug-in Electric Vehicle or Fuel Cell Electric Vehicle (VR-334) form.

Fees:

  • There is no fee for applying for the tax credit.

Credit requests received are subject to the availability of funding and will be calculated accordingly.​​


High Occupancy Vehicle (HOV) Permit Issuance for Plug-in Electric Vehicles

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.

For a plug- in electric: The vehicle owner(s) must complete the Application for Plug-in Electric Vehicle HOV Permit (form VR-335).

The permit will be valid from October 1, 2018 through September 30, 2022 and will be issued by:

  • ​The dealership selling the vehicle;
  • In person at the Vehicles Services Division, Counter 104 in the Glen Burnie MVA or
  • Mail the application to MVA, 6601 Ritchie Highway N.E. Room 104 Glen Burnie, MD  21062.

The vehicle must meet all 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 can be modified from the original manufacturer's specifications to a plug-in electric vehicle.  Modified vehicles must be examined by the Maryland State Police prior to the issuance of a HOV permit;
  • 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.

Permit Placement:

The permit must be affixed on the rear of the vehicle in a visible position within 12 inches of the license plate, but not on the window.

Note: A new permit may be placed over an existing one. 

 

Fees:

  • ​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).

Contact Information:

Motor Vehicle Administration

Vehicle Services Unit, Room 104
6601 Ritchie Highway, N.E.
Glen Burnie, MD 21062