What Are Maryland’s Incentives for Purchasing an Electric Vehicle?
We haven’t quite made it to flying cars like The Jetsons, but we do at least have electric cars. They are environmentally friendly, energy-efficient and typically require less maintenance. States, the federal government and manufacturers are also incentivizing the purchase of electric vehicles with rebates and tax credits. Purchasing an electric car can save you money and save the planet.
Maryland is one of 10 states that participates in the Zero Emissions Vehicles (ZEV) program. The ZEV program aims to reduce harmful emissions by requiring automakers to meet certain electric and hybrid vehicle production and sales quotas based on the number of non-electric cars they sell.
In addition to ZEV, Maryland’s Department of Transportation and the state’s Energy Administration have partnered to encourage residents to purchase electric vehicles (EVs). Their efforts have culminated in multiple current and future incentives for those who do purchase an EV.
Tax Credits for EV Vehicle Purchases
Electric car buyers can receive a federal tax credit worth $2,500 to $7,500. Tax credits depend on the size of the vehicle and the capacity of its battery.
The Maryland legislature also has a bill to revive funding for the state’s electric vehicle state excise tax incentive worth up to $3,000 for electric vehicles or plug-in hybrids.
EV and hybrid vehicle purchase incentives do benefit from some bipartisan support in Maryland and throughout the country.
“Our Clean Cars initiative has been incredibly successful, and we are urging the legislature to work with us to extend the program and make it accessible to more Marylanders,” said Governor Hogan last year in support of the Clean Cars Act of 2021 legislation.
The state of Maryland will hopefully continue to encourage electric vehicle purchases with additional incentives.
Rebate for EV Charging Equipment
In addition to the tax credit, Maryland offers a rebate for Electric Vehicle Supply Equipment (EVSE) purchases and installation. Rebates are offered on a first come first serve basis. EVSE rebate applications for the fiscal year ending in June 2021 are currently available.
Electric vehicle owners can get 40 percent of their vehicle’s charging equipment and installation paid for by the state. Both residential and commercial purchases qualify for the rebate.
- Up to $700 for individuals
- Up to $4,000 for businesses
- Up to $5,000 for service stations/gas stations
There is also a Federal EVSE credit of up to 30 percent or $1,000 available for installing a charging station. Residents and commercial property owners can receive this in addition to Maryland’s EV charging equipment rebate.
A quality EVSE costs between $300 and $1,200 plus installation of up to $600.
With both federal and state incentives combined, you can theoretically get the government to pay for 70 percent of your EVSE purchase and installation.
EV drivers in Maryland still must pay for the electricity they use to charge their vehicles, but with government rebates the charging equipment is astonishingly affordable. Considering the reasonable cost and the rebate incentive, electric cars are quickly becoming an attractive and convenient alternative for many vehicle purchasers.
Fuel Programs and Charging Station Savings
Drivers in Maryland that want to go green can sign up for fuel programs, including the Clean Fuels Technical Assistance Program (CFTA) and the Clean Fuels Incentive Program (CFIP). These programs make alternative fuel for EV vehicles more accessible and offers a variety of driver incentives. The goal of the program is to reduce the consumption of imported petroleum.
Some companies are also joining the green bandwagon by offering savings to fuel up. Pepco and The Baltimore Gas and Electric Company (BGE) reduce electric charging rates during peak hours for drivers. These time-of-use charging rates save drivers even more money on top of the savings they are already enjoying from not having to purchase traditional fuels.
BGE also has a goal to install more charging stations throughout the Baltimore area and are encouraging EV vehicle purchases in Maryland through their EVsmart Program.
HOV Access
What might seem like a minor incentive at first glance is possibly the most compelling of them all. Electric vehicle owners can use the High Occupancy Vehicle (HOV) lane at all times, with or without a passenger. That’s right – unlimited HOV lane access even in rush hour traffic.
Take Advantage of EV and Hybrid Vehicle Incentives While They Last
Maryland’s incentives for purchasing an electric vehicle or hybrid vehicle are enticing to people looking for a new or used car to purchase. The state’s goal with programs like ZEV and EVsmart is to increase the number of electric and hybrid vehicles on the road to 300,000 by 2025.
Both government and non-governmental organizations in Maryland hope to encourage residents to purchase electric vehicles by creating an array of accommodations that make EV vehicles more affordable and convenient than traditional vehicles.
If you’re interested in learning more about used car leasing or EV purchases, Easterns Automotive can help you. Our used car dealership have a wide variety of hybrid vehicles and electric vehicles for sale near you. Browse our selection or give us a call at (877) 867-3612 so you can find the right vehicle for your driving needs.
