Maryland EV Tax Credits

More and more automakers are building EVs, electric cars, and plug-in hybrid vehicles (PHEV) to move toward an electrified future for automobiles. And you’ve probably seen more and more EVs on Metro D.C. Area streets as you head to work and run your weekly errands. You’re seeing more EVs because they’re powerful, luxurious, and cost less to own. 

The state of Maryland wants you to be a part of an electrified future, giving you lower refueling costs and a decreased cost of ownership thanks to Maryland electric vehicle tax incentives! You can get up to $3,000 for Maryland EV tax credits. You also have the possibility of a $7,500 federal tax credit from Uncle Sam when you file your taxes. Buying an EV might be a surprisingly economical choice compared to an internal combustion vehicle. Let the MINI of Sterling team show you how this works with our guide to your finance options for an EV.

Does MD Have an EV Tax Credit?

Yes, it runs from July 1, 2023, through June 30, 2027. You’ll have to act fast if you want to take advantage of this incentive and Maryland EV tax credits because it has limits every fiscal year. You can get up to $3,000 in a tax credit when you purchase a zero-emission EV. All you have to do is find your favorite electric vehicle at a place like MINI of Sterling, buy it or lease it, and you’ll get the tax credit. Then, you can go back to your busy life in Loudoun County and live like a new EV owner! 

More Details About the Maryland Electric Vehicle Tax Incentives

There are a few stipulations about getting the maximum $3,000 rebate from Maryland. You’ll need to purchase a plug-in electric vehicle. See these stipulations here:

• 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 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.

So, in order to get the maximum amount of the New York EV incentives, you’ll need to purchase or lease a new plug-in EV with an MSRP of more than $50,000. You can also get a refund of 40 percent of the purchase price of a home charging system from the state of Maryland.

Federal Incentives

On top of Maryland EV tax credits, you could qualify for federal incentives from the Internal Revenue Service. You could earn a $7,500 incentive from the federal government. 

To qualify, you must:

• Buy it for your own use, not for resale

• Use it primarily in the U.S.

In addition, your modified adjusted gross income (AGI) may not exceed:

• $300,000 for married couples filing jointly 

• $225,000 for heads of households

• $150,000 for all other filers

For vehicles placed in service on April 18, 2023, and after:

Vehicles will have to meet all of the same criteria listed above, plus meet new critical mineral and battery component requirements for a credit up to:

• $3,750 if the vehicle meets the critical minerals requirement only

• $3,750 if the vehicle meets the battery components requirement only

• $7,500 if the vehicle meets both

A vehicle that doesn't meet either requirement will not be eligible for a credit.

Qualified Vehicles

To qualify, a vehicle must:

• Have a battery capacity of at least 7 kilowatt hours

• Have a gross vehicle weight rating of less than 14,000 pounds

• Be made by a qualified manufacturer. 

• Undergo final assembly in North America

• Meet critical mineral and battery component requirements (as of April 18, 2023).

The sale qualifies only if:

• You buy the vehicle new

• The seller reports required information to you at the time of sale and to the IRS.

In addition, the vehicle's manufacturer suggested retail price (MSRP) can't exceed:

• $80,000 for vans, sport utility vehicles and pickup trucks

• $55,000 for other vehicles

For a charging station at home, you can get a 30 percent refund of the purchase price from the federal government.

MINI EV Incentives

MINI offers an 8-year/80,000-mile warranty on the lithium-ion batteries in their cars. That means, with the right usage of the battery, it's covered against defects for nearly a decade! What are you waiting for? It’s time to take a test drive!

Test Drive a New EV at MINI Of Sterling

Ready to get the most out of your EV purchase? Contact us or call us to schedule a test drive for a new EV. We’d love to put you behind the wheel of a new vehicle that fits your lifestyle around the nation’s capital and Dulles Airport as you commute to work, run your weekly errands, and head to your favorite weekend destination. Want to save more money? Look over our new lease specials!