USA EV Incentives: Maryland
Save on your electric vehicle: explore rebates, tax credits, grants and other benefits.
State Incentives
Maryland offers several incentives for EV drivers. You can use HOV lanes with just one person in your car, and there's a tax credit for purchasing a new EV. Several utilities offer time-of-use electricity rates to save on charging costs, and there are rebates for installing home charging stations.
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Maryland EV High Occupancy Vehicle (HOV) Lane Exemption
Category: HOV Lane Access Electric vehicles are eligible to use HOV lanes regardless of the number of passengers in the vehicle. Requires HOV permit from the Maryland Department of Transportation Motor Vehicle Administration (MDOT MVA). Permit fee: up to $20. -
Maryland EV Tax Credit
Category: Tax Benefits Maryland offers a $3,000 tax credit for new EV purchases under $50,000. Limit: one credit per individual. Vehicles must be unmodified and purchased between July 1, 2023, and July 1, 2027. -
EV Charging Rate Reduction • BGE
Category: Electricity Discounts Baltimore Gas and Electric Company (BGE) offers time-of-use (TOU) rate for residential customers that own or lease an EV. Eligible customers must own a qualified AC Level 2 EV charger, capable of separately tracking EV charging data. -
EV Charging Rate Incentive • Potomac Edison
Category: Electricity Discounts Potomac Edison offers residential customers the opportunity to earn 2 cents per kilowatt-hour when charging with eligible EV chargers during off-peak hours through the EV Driven Off-Peak Rewards Program. -
Maryland EV Charging Station Rebate
Category: Charger Rebates Maryland is offering rebates to encourage the installation of EV charging stations. Residential customers can receive up to $700, and multi-unit developments can receive up to $5,000. -
EV Charging Station Rebate • Potomac Edison
Category: Charger Rebates Potomac Edison rewards multifamily property owners with rebates of up to $20,000 for installing smart Level 2 or DC Fast Charging stations. -
EV Time-Of-Use Rate • Pepco
Category: Electricity Discounts Pepco offers a Time-of-Use (TOU) rate for residential customers. -
EV Time-Of-Use Rate • Delmarva Power
Category: Electricity Discounts Delmarva Power offers a Time-of-Use (TOU) rate for residential customers.
Last Updated:
04/03/2025
Federal Incentives
The U.S. federal government offers EV tax credits to make going electric more affordable! New EV buyers may qualify for up to a $7,500 tax credit, depending on the car’s specs and buyer’s income. For pre-owned EVs, you could receive up to $4,000. Plus, homeowners in low-income or rural areas can get up to $1,000 for installing an EV charger.
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Federal Tax Credit for New Electric Vehicles
Category: Tax Benefits All-electric vehicles purchased new in 2023 or after may be eligible for a federal income tax credit of up to $7,500. The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. Also, you can't apply any excess credit to future tax years.
The availability of the credit will depend on several factors: Vehicle's MSRP, Final assembly location, Battery component and/or critical minerals sourcing, Taxpayer’s modified adjusted gross income (AGI). -
Federal Tax Credit for Pre-Owned Electric Vehicles
Category: Tax Benefits Pre-owned all-electric vehicles purchased in 2023 or after may be eligible for a federal income tax credit. The credit equals 30% percent of the sale price up to a maximum credit of $4,000. The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. Also, you can't apply any excess credit to future tax years.
The vehicle must be purchased from a dealer, have a sale price of $25,000 or less, and must have a model year two years prior to the current calendar year. -
Federal EV Charger Tax Credit
Category: Tax Benefits Individuals in low-income communities and non-urban areas who purchase qualified residential EV charger after January 1, 2023, may receive a tax credit of up to $1,000.
In order to qualify, individuals need to be located in low-income community census tracts or non-urban census tracts as defined in IRS Notice 2024-20.
Last Updated:
04/03/2025
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