July 27, 2023 Maryland taxpayers may be eligible for a one-time credit of the excise tax paid for the purchase, or lease, of electric vehicles (EV). This also applies to motorcycles. Maryland introduced this excise EV tax credit to lower upfront costs for electric vehicle buyers, promoting cleaner transportation options. This financial relief for individuals and businesses investing in green technology supports Maryland’s environmental sustainability goals. The initiative highlights the state’s commitment to reducing environmental impact and promoting energy-efficient practices within the community. This Maryland EV tax credit applies to purchases July 1, 2023 through June 30, 2027. The credit is limited to $3,000 per taxpayer, depending upon the Base Purchase price (note below) on the window sticker of the vehicle. If a married couple acquires 2 qualifying vehicles, each spouse is entitled to the Maryland electric vehicle excise tax credit. Businesses may also qualify for the credit on up to 10 vehicles. Qualifying Terms for the 2024 Maryland EV Tax Credit: 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 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 has a maximum speed capacity of at least 55 miles per hour MD EV Tax Credit Rebate: $1,000 for a 2-wheeled, zero emission plug in electric drive or fuel cell electric motorcycle. $2,000 for a 3-wheeled, zero emission plug in electric drive or fuel cell electric motorcycle. $3,000 for a zero-emission plug in electric drive or fuel cell electric vehicle. The attached form MD VR-334 must be emailed to MVAElectricRefunds@mdot.maryland.gov to qualify for the Maryland electric vehicle tax credit, or mailed to: Motor Vehicle Administration Excise Tax Refund Unit 6601 Ritchie Highway N.E. Glen Burnie, Maryland 21062 ****The application requires the Window Sticker to be included, and partially completed by the dealership**** Note – Base Purchase Price is the base price before options, upgrades, shipping, taxes, fees, and trade-in allowance. Download a PDF of the application here. How KatzAbosch Can Help At KatzAbosch, we know that over 50% of tax incentives and credits go unclaimed annually. In this fast-paced and ever-changing business environment, busy executives may overlook the multiple incentives and credits that are available to their specific businesses or industries. We want to ensure that every opportunity to reduce tax costs, accelerate deductions, improve cash flow and generate refunds is addressed. Learn more about our methods for reducing your tax obligation. If you have any questions about how you can take advantage of this tax credit, please contact your trusted KatzAbosch advisor.
