Information provided on this page is subject to change according to the issuing authority's programs. Please consult their respective websites for more information or visit the Maryland EV site here: https://marylandev.org/maryland-ev-tax-credit/#utility-incentives

Federal Incentives

Alternative Fuel Infrastructure Tax Credit

The Alternative Fuel Vehicle Refueling Property Credit is available for qualified AFV fueling property installed in qualified locations on or after January 1, 2023, and through December 31, 2032. Eligible property includes certain fueling equipment for natural gas, propane, hydrogen, electricity, E85, or biodiesel blends of at least 20% (B20+). Businesses are eligible for a tax credit of:

Consumers who purchase qualified alternative fueling equipment for installation at their principal residence in qualified locations on or after January 1, 2023, and through December 31, 2032, may receive a tax credit of up to 30% of the cost, up to $1,000.

To be eligible, all qualified fueling equipment also must be installed in a population census tract that is a low-income community or not an urban area. To help determine if an installation location is in a qualified census tract, see Argonne National Laboratory’s 30C Tax Credit Eligibility Locator tool and list of frequently asked questions.

Additional requirements may apply. Please consult a tax professional or the IRS for more information.

Commercial Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit

Beginning January 1, 2023, a tax credit is available to businesses and tax-exempt organizations for the purchase of new EVs and FCEVs. Vehicles with a gross vehicle weight rating (GVWR) below 14,000 pounds (lbs.) must have a battery capacity of at least seven kilowatt-hours (kWh) and vehicles with a GVWR above 14,000 lbs. must have a battery capacity of at least 15 kWh. The tax credit amount is equal to the lesser of the following amounts:

  • 15% of the vehicle purchase price for plug-in hybrid electric vehicles
  • 30% of the vehicle purchase price for EVs and FCEVs
  • The incremental cost of the vehicle compared to an equivalent internal combustion engine vehicle

Maximum tax credits may not exceed $7,500 for vehicles under 14,000 lbs. and $40,000 for vehicles above 14,000 lbs.

For more information, please consult a tax professional or the IRS.

 

Maryland State EV Incentives

    • HOV Lane Access
        • Qualified electric vehicles in Maryland are eligible for High Occupancy Vehicle (HOV) lane access, regardless of the number of occupants in the vehicle. This allows EV drivers to bypass traffic congestion in designated HOV lanes, potentially saving time during their commute. Permits are offered at a discounted rate of only $5 through to September 2025.

    • Electric Vehicle Charging Equipment Rebate Program
      • The Maryland Energy Administration (MEA) offers rebates for the costs of acquiring and installing qualified electric vehicle charging equipment at residences, workplaces, and government properties.
      • Rebates are available on a first-come, first-served basis and cover up to 50% of the cost of acquiring and installing eligible charging equipment, with a maximum rebate amount of $700 for residential installations and $5,000 for commercial installations.
      • Effective October 1, 2023, EVSE rebates will no longer issue for Level 1 charger installation. Dual-headed charging station with the capabilities to charge multiple vehicles simultaneously will be considered one charger for these purposes.
      • Eligible costs include costs directly related to the site design, charger equipment, installation, labor, permitting, site preparation, upgrade for utility connections, signage and equipment necessary to implement and operate the unit. Ineligible costs include the cost to purchase electricity fuel to power the unit, ongoing equipment and maintenance cost, taxes, shipping and credit card convenience fees.
      • Equipment must be purchased new and must be safety certified by a Nationally Recognized Testing Laboratory (NRTL) such as MET Labs, Intertek or Underwriter’s Lab.
      • Equipment must be installed by a MD-licensed, professional electrical contractor.
      • Application must be received by MEA within 6 months of the installation expenses.
      • Total MEA FY24 program funding is $2.5M and each entity that applies for a commercial rebate may receive up to $125,000 per fiscal year (July-Jun).
      • Residential applications – Only one rebate for one charger is permitted per individual resident. Previous rebate recipients are ineligible to apply. Multi-unit applicants apply as a residential applicant.Commercial applications – Must be a business, non-profit, LLC registered and in good standing with SDAT. State or local government may also apply. Eligible chargers must be located at a non-residential place of business.

    • Electric Vehicle and Fuel Cell Electric Vehicle Tax Credit
      • Beginning July 1, 2023, qualified EV and FCEV purchasers may apply for an excise tax credit of up to $3,000.
      • The tax credit is first-come, first-served, and is limited to one vehicle per individual and 10 vehicles per business entity.
      • Qualified vehicles must meet the following criteria:
        • Have a base purchase price not exceeding $50,000;
        • Be propelled to a significant extent by an electric motor that draws electricity from a battery with a capacity of at least 4 kilowatt-hours;
        • Have not been modified from original manufacturer specifications; and
        • Be purchased and titled for the first time between July 1, 2023, and June 30, 2027.

    • Electric Vehicle Emissions Inspection Exemption
        • Vehicles powered exclusively by electricity are exempt from state emissions inspections.

    • Alternative Fuel Vehicle (AFV) Grants
      • The Clean Fuels Incentive Program (CFIP), administered by the Maryland Energy Administration (MEA), provides grants to fleets for the retrofit or purchase of new AFVs. Grant award amounts vary and may cover up to 100% of the incremental AFV cost.
      • Eligible applicants must be a fleet vehicle operator or purchaser and may include school districts, nonprofits, commercial entities, corporations, and local and municipal governments. AFVs purchased for individual or personal use are ineligible. Vehicles receiving funding from other state programs are ineligible.
      • Grants are available in the following amounts: Class 1-2 EV up to $5000 per vehicle; Class 1-2 Natural Gas, Propane, Biodiesel and Hydrogen Vehicles up to $7500 per vehicle; Class 3-8 Natural gas, propane and biodiesel vehicles up to $50000 per vehicle; Class 3-7 electric and hydrogen vehicles up to $80000 per vehicle; Class 8 electric and hydrogen vehicles up to $150000 per vehicle.

    • Electric Vehicle Workplace Charging Grant
      • The Maryland Department of Environment (MDE) offers grants of up to 60% of the cost for the installation of EV charging stations at workplaces through the Charge Ahead Grant Program (CAGP).
      • Grants are available for up to $4,500 per Level 2 EV charger and $600,000 per applicant. CAGP funding is available for costs directly attributable to the design, installation, and operation of eligible workplace EV charging stations.
      • Eligible entities include non-profits, private companies, and government agencies.

    • Electric Vehicle Corridor Charging Grant
      • The Maryland Department of Environment (MDE) offers grants of up to 80% of the cost for the installation of direct current fast charging (DCFC) stations along FHA designated alternative fuel corridors through the Electric Corridors Grant Program (ECGP).
      • ECPG funding is available for up to $150,000 per DCFC station and $600,000 per applicant.
      • Eligible entities include non-profits and private businesses. Grant awards vary based on total kilowatts per charging port.

    • Solar Canopy Electric Vehicle Infrastructure Grant
      • The Maryland Energy Administration (MEA) offers grants of up to $125,000 for the planning and installation of solar arrays on existing public facilities and infrastructure.
      • Eligible projects include solar canopies that support EVSE.

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Private Utility Company Incentives

BGE – Serving Calvert and Prince George’s Counties

  • Electric Vehicle (EV) Charging Rate Reduction
    • BGE offers a special time of use rate for electric vehicle (EV) charging. This customer pricing plan provides the benefit of reduced electric bills to customers who charge their EV during off-peak hours.
    • Eligible customers must own a qualified Level 2 EV charging station, capable of separately tracking EV charging data.
    • With the Vehicle Charging Time of Use Rate, BGE residential customers can place their electric vehicle on a time-of-use rate while the rest of their house remains on a standard electric rate. The benefit to EV owners would be significantly lower electric costs for charging their vehicles during off-peak hours (nights and weekends).
      • Must be a residential account; Commercial accounts are not eligible
      • Utility account must be enrolled with Standard R Rate (i.e. 40R, 41MR, 42RH, and 43MRH)
      • Cannot be enrolled with an alternative Electric Supplier
      • Cannot be enrolled in any other existing EV special rate programs (149EV, 49EV, P149EV, P49EV)
      • Cannot be enrolled in Net Metering
      • Must have a BGE My Account
      • Cannot be enrolled in Prepaid
      • Cannot be enrolled in Budget Billing
      • Cannot have multiple premises linked to one account
      • Cannot have billing type as EDI
  • Residential Electric Vehicle (EV) Charging Station Rebate
    • Baltimore Gas and Electric (BGE) offers residential customers an annual credit of $50 for the purchase and installation of a Level 2 EV charging station. To be eligible, residential customers must charge EVs during off-peak hours

Pepco – Serving Prince George’s County

  • Electric Vehicle (EV) Charging Station Workplace Rebate
    • Pepco offers a 50% rebate to workplaces for the purchase and installation of Level 2 EV charging stations. Rebate awards are up to $5,000 per L2 charging port, and $30,000 per property. Eligible applicants include Maryland-based small businesses and nonprofit organizations.
    • Eligibility includes:
      • Submit the rebate application within 30 days after successful installation. 
      • Give Pepco access to your charging data, which requires either Wi-Fi or a 4G or 5G network at your property. You must purchase a 5-year cloud plan for your charger to provide Pepco access to your charging data. 
      • Be an active Pepco small business or nonprofit electric customer that uses 100 kW or less per month. 
      • Your company must be based or formed in Maryland.
      • Purchase and install an eligible Level 2 charger from the list of approved chargers on or after May 1, 2022. 
      • Provide Pepco with the price EV drivers pay to charge their vehicles at your chargers. 
  • Electric Vehicle (EV) Charging Station Credit
    • Pepco offers a $50 gift card to residential customers who purchase and install an eligible Level 2 EV charging station.
  • MultiFamily Electric Vehicle (EV) Charging Station Rebates
    • Pepco offers customers that own or operate multifamily properties a rebate for 100% of the cost to purchase and install eligible Level 2 smart EV charging stations, up to $15,000 per station (limit 2). Eligible customers may receive rebates for up to two EV charging stations.
    • Eligibility requirements include:
      • You must be an active Pepco electric customer on Schedule GS, MGT LV II, MGT LV III, MGT 3A II, MGT 3A III, GT, and NEM
      • You must be a multifamily unit
      • Purchases and installations of eligible Level 2 charger must be after July 1, 2019
      • You must provide the following materials to receive your rebate: completed rebate form, dated copy of sales receipt or invoice with EV charger model number(s), dated copy of installation invoice, and photo of installed chargers serial number(s), proof of licensed inspection
      • The rebate application must be submitted within 30 days of successful installation
      • You will be required to give Pepco the charging data and the price (structure as well as cost) charges
      • You must purchase a 5 year cloud plan.

SMECO – Serving Charles, St. Mary’s and Calvert Counties

  • SMECO EV Recharge
    • Members of Southern Maryland Electric Cooperative’s SMECO EV Recharge program can optimize home charging and earn up to $120 by choosing one of several tailored solutions that align with individual needs. Programs include:
      • Managed Charging, which offers EV drivers control of their charging and an automatic annual incentive paid as a $10 credit each month. Eligible devices are Tesla, ChargePoint and Enel X Way;
      • Charging Data Access, which offers an annual $50 credit to EV drivers willing to share their charging data to help enhance SMECO’s understanding of EV charging patterns. Eligible devices are Tesla, ChargePoint, Enel X Way, Emporia and EvoCharge; and
      • Off-peak Savings, designed for EV drivers who want more control over their own charging schedules and are open to charging within specific time frames. Eligible devices are Tesla, ChargePoint, Enel X Way, Emporia and EvoCharge.