The Benefits of Electric Vehicles in Maryland

There are many reasons why residents of Maryland are switching to electric vehicles. The benefits to be outlined affect the entire state, and the government recognizes that as it makes policies that help Maryland transition into a greener future.

Electric Vehicle Tax Credits and Rebates

Maryland provides multiple tax credits and rebates to promote electric vehicle purchases. These incentives can greatly lower the cost of owning an electric car, appealing to numerous residents. Purchasing an eligible electric vehicle in Maryland can grant a maximum tax credit of $7,500, offering significant savings.

From January 1, 2024, buyers can transfer their Clean Vehicle Credit to dealers, simplifying the process. Here are the specifics for different timeframes.

Vehicles Placed in Service After April 18, 2023

For vehicles in service after April 18, 2023, Maryland provides a $3,000 tax credit for qualified EV and fuel cell electric vehicle (FCEV) purchasers. The vehicle must have at least a 7 kilowatt-hour (kWh) battery capacity. Specific requirements concerning the vehicle's MSRP and battery components apply. For example, a $3,750 tax credit is available if the vehicle meets either the critical mineral or battery component criteria, and $7,500 if both are satisfied. Depending on your new EV's specifications, you can achieve considerable savings.

These incentives highlight Maryland's dedication to zero emission vehicles. Making electric cars more affordable helps reduce the state's carbon footprint and encourages residents to switch from traditional vehicles to cleaner alternatives.

This approach benefits the environment and helps drivers save on fuel and maintenance costs over time.

Vehicles Sold Between January 1 and April 18, 2023

Purchasers of electric vehicles between January 1 and April 18, 2023, are eligible for a $7,500 tax credit. This incentive aimed to encourage early adoption and support the transition to zero emission vehicles.

Buying an electric car within this timeframe allows you to use the substantial tax credit to offset the vehicle's cost.

Vehicles Purchased Before August 17, 2022

Vehicles purchased before August 17, 2022, may also qualify for a tax credit of up to $7,500. The vehicle must have a minimum battery capacity of 5 kWh. If you took possession after August 16, 2022, but had a contract before that date, you remain eligible for the credit.

This provision rewards early adopters for their commitment to reducing emissions and supporting alternative fuel vehicles.

National Electric Vehicle Infrastructure

Maryland's dedication to electric vehicles extends beyond financial incentives. The state actively participates in the National Electric Vehicle Infrastructure (NEVI) Planning to develop a robust EV infrastructure. The Maryland Department of Transportation submits an annual EV Infrastructure Deployment Plan to access NEVI funds, ensuring infrastructure development aligns with federal guidelines and supports the growing number of electric vehicles.

The NEVI Formula Program, managed by the U.S. Departments of Transportation and Energy's Joint Office, provides the framework and funding for these initiatives.

These plans aim to enhance Maryland's EV charging network, making it more convenient for residents to own and operate electric vehicles. This approach supports current EV owners and encourages more people to switch to cleaner transportation.

Clean Energy Grants for Local Governments

Maryland further promotes electric vehicle adoption by offering clean energy grants to local governments. These grants fund various transportation projects, such as purchasing electric vehicles and installing charging stations. Communities can receive up to $7,500 per electric vehicle with a range over 200 miles. This support helps local governments transition to zero emission vehicles, reducing greenhouse gas emissions and improving air quality.

The Maryland Smart Energy Communities program offers grants up to $150,000 per project to local governments. Applicants submit a detailed proposal on fund usage. These grants empower local governments to lead by example and promote widespread electric vehicle adoption in their communities.

The Charging Station Rebate Program

Maryland's Electric Vehicle Charging Station Rebate Program offers substantial financial assistance for EV charger installations. The fiscal year 2025 funding is set at $2.5 million. Residential applicants can receive rebates covering 50% of eligible costs, up to $700 per charger. Commercial installations can receive up to $5,000, also covering 50% of total costs.

Rebate applications are processed on a first-come, first-served basis until funds are depleted. Note that Level 1 EVSE installations purchased on or after October 1, 2023, are no longer eligible for rebates.

This program helps individuals and businesses reduce the cost of installing EV charging stations, supporting the growth of Maryland's EV infrastructure.

The Solar Canopy Grant

Maryland offers grants for solar canopy projects supporting EV chargers, with a maximum grant amount of $125,000. Eligible projects include solar canopies that provide essential infrastructure for EV charging. This initiative promotes renewable energy use and enhances EV charging station availability.

The Maryland Energy Administration's grant program is competitive, with a budget of over $4.7 million from the Strategic Energy Investment Fund. The FY25 Solar Canopy Grant Program application deadline is October 30, 2024, prioritizing projects aiding low-to-moderate income and disadvantaged communities.

This grant program offers communities an excellent opportunity to support renewable energy and EV infrastructure.

Zero Emission School Bus Grant Program

Maryland targets emission reduction in the education sector with the Zero Emission School Bus Grant Program, established on May 13, 2019. This program helps local governments purchase zero-emission school buses and install necessary charging infrastructure, supported by the Maryland Department of the Environment and the Maryland Department of Transportation.

From 2023, the Maryland Transit Administration must purchase only zero-emission buses. This initiative reduces greenhouse gas emissions and ensures students travel in cleaner, quieter buses.

The program covers the purchase of new electric or alternative fuel vehicles and the installation of EV chargers. Transitioning to zero-emission school buses aims to create a healthier environment for future generations.

High Occupancy Vehicle Lane Exemption

A perk of owning an electric vehicle in Maryland is the ability to use High Occupancy Vehicle (HOV) lanes even when driving solo. EV HOV permits allow single-occupant vehicles to use HOV lanes, saving time during peak traffic hours. This exemption applies to plug-in electric and qualified plug-in hybrid vehicles.

Valid from June 12, 2023, to September 30, 2025, the permit can be obtained online, by mail, or in person at a Motor Vehicle Administration (MVA) office. It must be displayed on the rear of the vehicle near the license plate.

This incentive makes commuting more convenient and encourages the adoption of zero emission vehicles.

Electric Vehicle Emissions Inspection Exemption

In Maryland, electric vehicles are exempt from state emissions inspections. This exemption acknowledges the environmental benefits of EVs, which do not produce typical gasoline vehicle emissions. By removing this requirement, Maryland makes owning and operating an EV easier and more cost-effective.

Outlined under the Maryland Vehicle Emissions Inspection Program, this exemption aims to ensure motor vehicles on the road are environmentally friendly. Exempting electric vehicles from emissions testing promotes zero emission vehicle adoption and supports the state's environmental goals.

The Zero Emission Grant

For those in goods transportation or managing larger fleets, Maryland offers the Medium- and Heavy-Duty Zero Emission Vehicle (MHD ZEV) Grant. Administered by the Maryland Departments of the Environment and Transportation, this grant offers substantial financial support for transitioning to zero-emission vehicles.

The Maryland Energy Administration has allocated $6.5 million for these grants in Fiscal Year 2024. The funding covers up to 75% of the additional cost of zero-emission vehicles compared to traditional ones. Eligible applicants include fleet companies, organizations, and local communities within Maryland.

The application deadline is April 22, 2024, at 5:00 PM EDT. This grant provides a substantial incentive for businesses and communities to reduce their carbon footprint and operational costs.

Electric Vehicle Charging Rate Incentives

Electric vehicle owners in Maryland can benefit from charging rate incentives offered by local utilities. For example, BGE offers a program allowing residential EV owners to enjoy time-based pricing, lowering costs during off-peak hours. To qualify, customers must have a compatible Level 2 EV charger that monitors charging activity.

Residential customers of Potomac Edison can earn a financial incentive of 2 cents for every kilowatt-hour charged during off-peak periods. These incentives reduce charging costs and encourage owners to charge during lower demand periods, benefiting the overall energy grid.

Multifamily Property Owner EV Charger Rebates

Maryland offers rebates to multifamily property owners who install EV chargers, supporting EV adoption in this sector. The EV Driven program provides incentives covering 50% of expenses for purchasing, leasing, and installing qualified Level 2 and DC Fast Charging stations.

By encouraging multifamily property owners to install EV chargers, Maryland is making it easier for residents in apartment complexes and other multi-unit dwellings to own and charge electric vehicles. This initiative supports the state's broader goals of expanding EV infrastructure and promoting zero emission vehicles.

Public Electric Vehicle Charger Incentives

Maryland is also expanding its public EV charging infrastructure through incentives offered by utilities like Potomac Edison and SMECO. Potomac Edison will install and operate as many as 59 public Level 2 or DC fast chargers. This will be done on government property at no expense to the government. These chargers will be strategically placed to maximize accessibility for EV owners.

Similarly, SMECO plans to install and operate up to 60 public Level 2 or DC fast chargers on government properties. Applications for both programs are reviewed on a first-come, first-served basis.

These initiatives are crucial for ensuring that public EV charging stations are widely available, making it convenient for EV owners to charge their vehicles and encouraging more people to switch to electric cars. Additionally, investing in vehicle ev charging equipment will further support this transition.

The New Construction Requirement

Starting October 1, 2023, Maryland has implemented a new requirement for EV charging stations in newly constructed homes with garages or driveways. This law mandates that new homes must either have a Level 2 electric vehicle charger installed or be pre-wired for a Level 2 charger installation.

This requirement aims to facilitate the adoption of electric vehicles by ensuring that new residential constructions are EV-ready from the start, thereby removing a significant barrier to EV ownership.

Sales Requirements and Vehicle Standards

Maryland has adopted California's vehicle emissions standards and compliance guidelines as of September 1, 2023. This includes the Zero Emission Vehicles (ZEV) program, which requires vehicle manufacturers to sell an increasing percentage of zero-emission trucks starting with the model year 2027. These requirements ensure that more zero-emission vehicles are available in the market, helping to reduce overall emissions.

Additionally, all light-duty vehicles in the state fleet must be zero emission vehicles by 2036. By December 1, 2023, Maryland will adopt the California Advanced Clean Trucks requirements, further aligning the state's emission standards with those of California. This alignment is crucial for maintaining stringent emission standards and promoting the widespread adoption of zero emission vehicles.

Vehicle Acquisition Requirements

Maryland is committed to transitioning its state fleet to zero emission vehicles. All passenger vehicles in the state fleet must be zero-emission vehicles by 2031. This requirement ensures a complete transition to ZEVs. If ZEVs are unavailable, state agencies can opt for plug-in hybrid electric vehicles. From fiscal year 2023 to 2025, 25% of new passenger vehicle acquisitions must be ZEVs.

State agencies are required to coordinate their vehicle acquisition efforts to support this transition, as mandated by the transportation motor vehicle administration. They must also report their progress on vehicle acquisition to the General Assembly annually. This ensures accountability and transparency as Maryland works towards its goal of a fully zero-emission state fleet.

Alternative Fuel Use Requirement

To further reduce emissions, Maryland requires that at least half of the state vehicles that use diesel fuel incorporate a minimum biodiesel blend of 5%. Vehicles whose warranty would be voided by the use of such fuels are exempt from this requirement.

This initiative aims to reduce the environmental impact of state-operated vehicles and promote the use of alternative fuel vehicle fuels.

Three Things that Residents Need to Know

• Maryland offers various tax credits and rebates for electric vehicle purchases, significantly lowering the cost of ownership and promoting environmental benefits.
• The state is actively improving EV infrastructure through the National Electric Vehicle Infrastructure (NEVI) Planning and grants for local governments to install charging stations.
• Maryland has implemented new regulations mandating EV charger installations in new homes and sets ambitious targets for transitioning its state fleet to zero-emission vehicles by 2036.

Frequently Asked Questions by Residents

Sum and Substance

Maryland offers a comprehensive suite of incentives and programs designed to promote the adoption of electric vehicles. From substantial tax credits and rebates to grants for local governments and public charging station initiatives, the state is making it easier and more economical for residents to switch to electric vehicles. These efforts not only support individual EV owners but also contribute to the broader goal of reducing greenhouse gas emissions and improving air quality.

In summary, the myriad benefits of owning an electric vehicle in Maryland are clear. By taking advantage of these incentives and programs, you can significantly reduce the cost of purchasing and operating an EV. As Maryland continues to invest in EV infrastructure and supportive policies, now is the perfect time to make the switch to a cleaner, greener mode of transportation.