Maryland is already out of EV tax credits for 2019

The state drained its $6 million fund for EV incentives before the fiscal year began.

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Florian Gaertner via Getty Images
Florian Gaertner via Getty Images

Maryland's electric vehicle (EV) tax credits are so popular, they're already gone. According to the state's Motor Vehicle Administration, the $6 million fund meant to cover the tax credits was depleted before the fiscal year began on July 1st. The state offers a $100 credit per kilowatt-hour of battery capacity for EVs and plug-in hybrids (with a maximum $3,000 rebate), but so many drivers have applied for the credit, there's a waiting list with more than 700 applicants.

The fact that the state burned through the funds so quickly speaks to the growing popularity of EVs and plug-in hybrids. The number of EVs registered in Maryland reportedly doubled from 2017 to 2018, and it reached more than 18,000 in February. Maryland has a goal to register 300,000 EVs by 2025, and it doubled its funding for the 2019 EV tax credits. But a backlog of applicants from the previous fiscal year meant that all of the money for 2019 was spoken for before July 1st. Unless the state can come up with more funding, it's likely a similar scenario will play out next year, too.

EV owners are still eligible for federal tax credits, but those aren't a guarantee, either. The Trump administration has toyed with slashing the incentives (up to $7,500 on the purchase of a new EV) from the 2020 budget. As EV sales continue to increase and funds for tax credits dry up, states might have to get creative and look toward incentives like fast charging and low power rates.

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