Incentives for EV and Charging Equipment Purchases

Electric vehicles often have higher upfront purchase prices than comparable gas-powered vehicles. However, the long-term savings on fuel and vehicle maintenance costs over the vehicle's lifespan typically make owning an EV a more affordable option. 

This page features readily available incentives that can help offset the higher upfront costs.

For even more information and a complete, up-to-date listing of incentives, laws, and regulations related to EVs, charging equipment installation, alternative fuels, and advanced vehicles for Maryland, please visit: https://afdc.energy.gov/laws/state_summary?state=MD

  1. For Individuals
  2. For Businesses

Federal Incentives for New EVs

New EVs may be eligible for a federal income tax credit of up to $7,500. The federal tax incentive is not applied at the point of purchase but may be claimed on the tax return for the year the vehicle is placed in service. (The full credit can only be claimed if an individual’s tax bill is $7,500 or higher.) Individuals wishing to claim the credit must meet certain adjusted gross income limits, including $300,000 for married couples filing jointly, $225,000 for heads of households, and $150,000 for all other filers.

Qualifying EVs cannot exceed an MSRP of $80,000 for vans, SUVs, and pickup trucks, or $55,000 for other vehicles. In addition, vehicles must undergo final assembly in North America, have a battery capacity of at least 7 kWh, and have a gross vehicle weight of less than 14,000 pounds. Other qualifications may apply depending on when the vehicle is placed in service. Buyer qualifications, vehicle qualifications, and instructions on how to apply for the tax credit may be found at: https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after.

Federal Incentives for Used EVs

Used EVs may be eligible for a federal income tax credit of 30% of the sale price, up to a maximum of $4,000. (The full credit can only be claimed if an individual’s tax bill is $4,000 or higher.) Individuals wishing to claim the credit must meet certain adjusted gross income limits including $150,000 for married couples filing jointly, $112,500 for heads of households, and $75,000 for all other filers.

Qualifying EVs cannot exceed a sale price of $25,000. In addition, vehicles must be purchased from a licensed dealer, have a model year at least two years earlier than the year in which the vehicle is purchased, have a battery capacity of at least 7 kWh, and have a gross vehicle weight of less than 14,000 pounds. Buyer qualifications, vehicle qualifications, and instructions on how to apply for the tax credit may be found at: https://www.irs.gov/credits-deductions/used-clean-vehicle-credit.

State Incentives for New EVs

New EVs may be eligible for a Maryland income tax credit of up to $3,000. The state tax incentive is not applied at point of purchase, but may be claimed for the year in which the vehicle is placed in service. (The full credit can only be claimed for new EVs if an individual’s tax bill is $3,000 or higher.)

Qualifying EVs cannot exceed a sale price of $50,000. In addition, vehicles must have a battery capacity of at least 5 kWh. Vehicle qualifications and instructions on how to apply for the tax credit may be found at: https://mva.maryland.gov/vehicles/Pages/27300-71T.aspx

State Incentives for EV Charging Stations

Individuals may be eligible for a rebate from the Maryland Energy Administration (MEA) for the purchase and installation of eligible EV chargers. The rebate may cover 50% of the costs to purchase and install eligible EV chargers, not to exceed $700 per charger. Qualifications and information on how to apply for the rebate may be found at: https://energy.maryland.gov/transportation/Pages/incentives_evserebate.aspx.

Other Incentives for EV Charging Stations

Individuals may be eligible for a $300 Potomac Edison rebate for the purchase and installation of an eligible Level 2 charger at their home. Charger qualifications and information on how to apply for the rebate may be found at: https://firstenergycorp.com/help/electric-vehicles/maryland-ev/maryland-ev.html.

State Emissions Inspection Exemption

Cars and trucks powered exclusively by electricity are exempt from Maryland vehicle emissions inspections. More information may be found at https://mva.maryland.gov/about-mva/Pages/info/58000VEI/58000-06T.aspx#appendix_c

Cooperative Purchasing for Charging Equipment

The Capital Area Solar Switch organizes a group purchasing opportunity each year to provide bulk pricing for individuals interested in buying home solar energy systems. The components may include vehicle charging equipment, which allows an EV to be fully powered by renewable energy! Learn more at: https://solarswitch.com/en/maryland/home.