EV Incentives
Maryland and Federal Incentives Make Going Electric More Affordable
Maryland and the federal government offer meaningful financial incentives for EV purchases and home charger installation. From tax credits to utility rebates, there are multiple programs that can reduce the upfront cost of switching to an electric vehicle.
You may be eligible for up to $7,500 in federal tax credits for a qualifying new EV or plug-in hybrid under the Inflation Reduction Act. The credit amount depends on the vehicle’s battery capacity and whether it meets domestic manufacturing requirements. Used EVs may also qualify for a credit of up to $4,000. Income limits apply — check with the IRS or your tax advisor for current eligibility requirements.
Maryland offers a $3,000 excise tax credit for qualifying zero-emission plug-in electric or fuel cell electric vehicles. This credit applies at the time of purchase and reduces the excise tax owed on the vehicle. Check with the Maryland Motor Vehicle Administration for current program details and qualifying vehicles.
EV drivers in Maryland can obtain an HOV permit to use high-occupancy vehicle lanes regardless of the number of passengers in the vehicle. This can save significant time on Maryland’s congested highway corridors. Contact the Maryland Transportation Authority or your county’s transportation office for details on how to obtain an HOV permit.
Individual Maryland utilities offer rebates for home EV charger (EVSE) installation. BGE, Pepco, Delmarva, Potomac Edison, and SMECO each offer rebates of up to $700 per person for qualifying home charger installation. Contact your utility directly or visit their website to find current rebate amounts and eligibility requirements.
MCEC’s Clean Energy Advantage Loan Program can provide 0% APR financing for the first 24 months to help cover the cost of home EV charger installation. The program is available to residents served by BGE, SMECO, Potomac Edison, Delmarva Power, Pepco (excluding Montgomery County), or Washington Gas.
Note to MCEC: Please confirm current CEA program status and available funding before publishing.
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