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Maryland EV Tax Credit

Maryland EV Tax Credit

For Maryland residents: Although this has been discussed on the Model S forum, I would like to share this information on the Model 3 forum as there has been much concern about the Federal tax credit being tapered and eventually phased out beginning mid 2018 by most estimates.

You may be eligible for a one-time excise tax credit, up to $3000.00, when you purchase a qualifying plug-in electric vehicle. Effective July 1, 2017 through June 30, 2020, an individual may be entitled to receive an excise tax credit on a qualifying plug-in electric vehicle regardless of whether they own or lease the vehicle. Business entities may also qualify for the tax credit on up to ten vehicles.

The criteria for a qualifying plug-in electric vehicle are as follows:

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, 2017, but before July 1, 2020.
The vehicle must be acquired for use or lease by the taxpayer, and not for resale.
The vehicle must be capable of being recharged from an external source of electricity.
Has a total purchase price not exceeding $60,000
Has a battery capacity of at least 5.0 kilowatt-hours
Credit request received are subject to the availability of funding and will be processed in the following amounts:

The product of $100 times the kilowatt-hours of battery capacity of the vehicle not to exceed $3,000. Vehicles with 30 kilowatt-hours and above will only qualify for the maximum allowed of $3,000.
If you have purchased a plug-in electric vehicle from a Maryland dealer, the dealer will assist you with completing the proper form for the tax credit, you may download the Excise Tax Request for a Plug-in Electric Vehicle (VR-334) form.

There is a program cap of $1.2 million PER YEAR during the eligible 3 years. Additionally, there is a charging equipment rebate of the lesser of 40% cost OR $700 for individuals.

I just wanted to remind everyone of this info as this should be factored into affordability calculations.

cafutter | July 29, 2017

Being a Maryland resident, I was wondering about this, especially since there won't be much of a federal tax credit, if at all. Thanks,

deanli | July 29, 2017

Is excise tax same as sale tax (6% for maryland) ?

rockyb | July 29, 2017

This is a tax credit.

ReD eXiLe ms us | July 29, 2017

le biemp.

TMcC | July 29, 2017

As a MD resident, thanks rockyb. That "may" affect some of my decisions.

deanli | July 30, 2017

Thanks rockyb! So it's a straight tax credit? I was confused by the term "excise tax". Also surprised by the program cap of $1.2 million/year. It allows only 400 tax credits for 6 million people?

Geozeke | July 30, 2017

Since the early production Model-3s are all extended range, with upgraded interior required, I'm wondering how this would affect the EV tax credit in Maryland. It says: "Has a total purchase price not exceeding $60,000". If you get a 3 now, and tick all the optional boxes (Sport Wheels ($1,500); Paint other than black ($1,000); Enhanced Autopilot + Full Self Driving Capability ($8,000) that comes to $59,500 *before* sales tax. Add 6% MD sales tax (plus destination; title & tags) and the total comes to over $64,000.

Wonder if the $60K limit is calculated before or after sales tax.

rockyb | July 30, 2017

@geozeke. I wouldn't get every option for that reason. Not worth the risk. I would skip the wheels and FSD. You can always get after market wheels, and sell the standard aero wheels or use as backup. I also never understood why people would buy the FSD up front even with the knowledge the cost increases should you decide to purchase later. It may never get approved.

Michael_Bluth | July 30, 2017

says $60k is sale price (i'm guessing MSRP), so i don't think tax, tags, title, delivery are included.

Geozeke | July 30, 2017

Good idea @rockyb. I've seen a few screenshots of the M3 configurator, but I haven't seen whether or not the FSD upgrade costs $3K now and $4K later (like on the MS and MX). Assuming it does, it's still a good deal if you pick up the MD tax credit and wait for FSD. Getting FSD would end up costing you $1K (net) in that case.

Skipping the wheel upgrade and FSD should bring the total in Maryland (with tax, tile, tag, destination) to ~$59,550 :-)

danf879 | July 30, 2017

Does the $1.2 million reset in January or a year from when it was inplemented (July 1)? And do we have any idea of how many other non Tesla's have been sold so far since July 1? If I called do you think they'd give us that info? So many questions. :). Can't believe the $1.2 million cap, it really is crazy...

To the person who said there won't be much of a federal credit, if at all, why? Is the consensus this is going to run out sooner rather than later? My understanding is even if they do hit the limit of sales, the IRS wouldn't cap rebates for 2 quarters later...

Michael_Bluth | July 30, 2017

if the state does run out of funds in a certain year, couldn't you apply the first day of the next one? page and form have no limits or restrictions on when credit application is made, except for the program dates of 2017-2020.

Geozeke | July 30, 2017

@danf879: Maryland's fiscal calendar runs from 7/1 of one year -> 6/30 of the following year. MD is currently in FY18, so my guess is that the reset happens on 7/1 of Calendar Year 2018 (Start of MD's FY19).

@Michael_Bluth: I think you're right. The Maryland Tax Website says: "The vehicle must be a new vehicle and titled for the first time on or after July 1, 2017, but before July 1, 2020." Seems hopeful that if the funds run out in any given fiscal year, you can try again the next year, up to FY20.

Here's the MD Tax Website:

http://www.mva.maryland.gov/about-mva/info/27300/27300-71T.htm

Here's the form you have the dealer fill out to be eligible for the credit:

http://www.mva.maryland.gov/_resources/docs/VR-334.pdf

TMcC | July 30, 2017

My one question regarding this Excise tax credit, and it may be a nitpick, but I would be concerned that the wording on the form says that "Dealership must complete the following statement". Technically, I don't think that Tesla has any "dealerships" in Maryland. am I wrong? And does anyone know if they would make this distinction?

danf879 | July 31, 2017

Interesting, I wonder if there will be a line of people the morning of 7/1/18 hoping to apply for the credit...

For what it's worth, the 2018 law is a continuation of the previous years rebate, and while I don't know anyone in MD personally with a Tesla, the S is listed in the chart as no longer being elligible (because of the cost), suggesting it was elligible last year.

No_ICE | August 4, 2017

The MD excise tax is essentially the MD sales tax (6%). I asked the MVA for the definition of total sales price and this is what they said.

"A vehicle purchased from a licensed dealer is assessed excise tax based on
the total purchase price. Total purchase price means the price of a vehicle
agreed on by the buyer and the seller, including any dealer processing
charge, less an allowance for trade-in. Manufacturer rebates are taxable,
however dealer rebates and discounts are not. All rebate, trade-in, or
discount information must be clearly marked on the bill of sale."

So, for a new Model 3, I think the total purchase price would be the total price of the car plus options plus the delivery and destination charge LESS the value of your trade-in should you be trading in a vehicle.

So, if you are buying a First Production Model 3 with all options then I believe you would exceed the $60K limit factoring in a $1200 destination/delivery charge. If you are trading in a vehicle then you would be fine.

Note that since this an excise tax credit, you get reimbursed immediately. You fill out the form and they mail you a check. This is not something that you have to wait until tax time to take advantage of like the Federal Tax credit.

As someone pointed out earlier in this thread, funds for this program are very limited ($1.2M per year) so it's best to submit your form as soon as possible after purchase.

stevenroglen | August 4, 2017

Don't forget the 40% rebate up to $700 for any home charging accessories/installations.

ReD eXiLe ms us | August 23, 2017

This may well need a bump or three...

gadgetware | September 3, 2017

I am currently trying to decide between the two range models and the availability of this credit might impact my decision. I'm leaning towards the short-range model but if waiting until Jan-Mar '18 (est. delivery for me) means losing the credit it might then be worth switching to the long-range model since then it's an equivalent of a ~$6k upgrade.

I called the MVA yesterday and spoke to someone in the "Excise Tax Refund Unit". They told me that all application processing is currently on hold until they finalize internal (MVA) guidance. She also told me that they are adding funds to the program this year but couldn't provide me with a budget amount (probably referring to to change from $600k to $1.2m). Finally she confirmed that the limits are tied to the MD Fiscal Year (Jul-Jun). Her advice was to call back when I am ready to buy my car to get the current status on the program. (Note: none of this is in writing so I can't validate the accuracy of this information)

My current guess is that the funds will be depleted before either version of the car is available unless my delivery gets pushed back until July!

jeffrey.herrera | April 20, 2018

Has anyone submitted this form yet for the model 3 or model S? There is a section on the form that says that a "dealership" must complete the form and it also has a line item for dealership number. I spoke with the Tesla sales in CityCenter DC and asked a person there this question and he said that Tesla does not have a dealership number. He also had no clue on how to fill out the form and recommended that I speak with a tax professional to get help. I recommended that he should consider getting up to speed on this form as there will be more and more people who purchased model 3's asking the same question.

No_ICE | April 21, 2018

Went with someone yesterday to pickup their Model 3 at the Owings Mills, MD store. Tesla had the form all filled out and told her all she needed to do was sign and mail it to the MVA.

MarylandS85 | April 22, 2018

Picked up my Model 3 from Owings Mills on March 27. Mailed the form to the MVA the next day. No word yet....

MarylandS85 | April 29, 2018

Quick update: just received my $3,000 refund check from the state yesterday (April 28), so it took exactly a month from the day I mailed it, for those wondering how long to expect to wait.

jezba | April 29, 2018

Thank you @ MarylandS85 for the update , got mine last week busy driving will be mailing tomorrow, any updates about the EVSE rebates ?

MarylandS85 | April 29, 2018

@jezba
You’re welcome. I’d mail that out ASAP. You never know when they’ll run out of funds. As far as Maryland EVSE rebates, I don’t know, as I didn’t install anything this year. I already had charging stations in my garage from prior (we have a Model S and had a Leaf we’d traded in for our Model 3). Here’s more info from the state:
http://energy.maryland.gov/transportation/Pages/incentives_evserebate.aspx

jezba | April 29, 2018

@MarylandS85 will do, Thank you !

Goodman.Larry | April 29, 2018

I mailed mine out the day after I got my plates (last Thursday). Didn’t think you could do it until then. Hope to see my rebate in a month. I’ll check out the link about the EVSE Rebates but I had my 14/50 circuit added in 2017 and I took the federal Tax credit for that.

gballant4570 | April 29, 2018

Maryland State Gov has a webpage on all this.....

jeffrey.herrera | April 30, 2018

@No_ICE:

Thank you that makes me feel more confident than the person I spoke with in DC.

jezba | April 30, 2018

@MarylandS85 thanks again sent out both MD excise tax rebate and EVSE for Nema 14-50 rebate today (used the HavePower people they are rated number one by Tesla I like them too,they made only couple holes from the basement Panel to the garage, totally opposite end about 50 feet long for ~$1300 including state permit and inspection) and for some reason I called the EVSE office and the getleman politely requested besides many pictures a picture of my Tesla charging because people put Nema 14-50 in their garage for some othe kinds of purposes like Laundry and still collect the 40% installation fee ? Interesting !

MarylandS85 | April 30, 2018

Hmmm... @jezba. I’m not surprised people try to cheat for rebates they’re not eligible for. I *am* surprised the government is savvy enough to watch for cheating. Luckily for you, you’re legit! I also was in touch with HavePower when I had my EV charging system installed. Although I didn’t go with them in the end, I had a great experience communicating with Jason. Those guys are clearly true professionals!

bwf21 | April 30, 2018

I got mine in about a month too. I'm surprised at the efficiency. But I used to live in Illinois.

jat255 | May 4, 2018

Does anyone know if the credit is refundable, or not?

i.e., if I trade-in a vehicle, which lowers my excise tax due for the car to below $3k, do I still get the full $3k, or only the amount of tax actually paid?

MarylandS85 | May 4, 2018

@jat255
I’m not sure I understand your question. Maryland’s EV credit is basically a rebate. You buy a car valued at less than $60k, mail in the form Tesla gives you, and get a $3,000 check from the state in about a month. I don’t know the full tax ramifications, but I don’t think it’s a tax credit like the $7,500 federal tax credit is.

Kickass | June 26, 2018

@marylands85
Wanted your opinion. Im in maryland. Deciding between a RWD or AWD model 3. Which one would you go for? Considering that AWD is lowered to 4k. If i go with the RWD my price comes to 56k including documentation fee, not taxes. I know I will get the MD tax rebate. But going with AWD will bring me to 60k on the dot including the 1k documentation fee from tesla not including taxes. So would I be able to get the MD tax rebate with AWD? Is AWD WORTH IT? Whats inclusive of the “purchase price”? Need your help. Thanks.

Kickass | June 26, 2018

@marylands85 And to add i will be paying 3500 as a down which tesla already takes. I might put addtional 1k. Does that factor in the final purchase price?

jezba | June 26, 2018

@Kickass
The MD excise tax credit states a total purchase price not exceeding $60,000, so I think you qualify for AWD. The price that you will be filing to the state is going to be the total price on your final purchase agreement. And in about a month you will get a nice mail from Glen Burnie :)

Kickass | June 28, 2018

Thanks @jezba. Just called Tesla. Certainly can still qualify for the MD rebate given that the downpayment will lower the price of the car. However, since my car was on the way I could not update to the AWD. They said I lose the reservation deposit and would have to reserve again. Meaning a longer wait till I get a configuration email and losing out on the Life Long Internet connectivity. I dont know and dont think that the AWD is worth to go through all that. But I ordered even last week I would have been able to edit my config from RWD to AWD.

Kickass | June 28, 2018

What are you guys input on AWD vs RWD?

hdharia17 | June 28, 2018

Just ordered AWD, hoping for both federal credit and md tax rebate.

gballant4570 | June 28, 2018

I configured last night. AWD, PUP, LR, EAP, Blue paint, 18" Aeros, price $59K. Clears for the tax credit by $1K, unless there is a destination charge of that amount, in which case meets the limit exactly.

Wheel upgrade or FSD would have put the price over the limit, so I'll see about them later.

I am a Maryland resident of course......

hoya68 | June 28, 2018

I was informed in writing that each person can only get one EV credit in Maryland, so I should make sure that application for a second credit is in the name of a co-owner

skitlo | June 29, 2018

It's unfortunate that EAP and FSD aren't separate orders from the actual vehicle build itself. Configuring an AWD, LR, PUP, EAP, FSD barely kills the credit at $61k. You could certainly omit FSD but then the credit drops to $1k, with the after order premium, assuming it doesn't increase further in cost.

@Kickass I don't believe that will be the case with the downpayment. I imagine the purchase agreement will read as the downpayment simply lowering the final payment amount due.

gadgetware | July 4, 2018

Just picked up my car on Monday. Was about to send in the form but I see that there's a space for the title number. If you have already received your check can I ask whether you waited to get your title number or did you just send in the form? Did you send in any additional information (e.g. purchase agreement)?

rob.kibler | July 4, 2018

Do you need to take delivery of your Model 3 in Maryland to get the tax credit? I've read the requirements on the MVA site, and they do not talk about where you buy the car. They do specify that you must title it in Maryland (which I will do). Can I take delivery in Tysons Corner, VA. and still get the credit? i.e., Will the Tesla office in Virginia include a *Maryland* excise (sales) tax on the vehicle?

cafutter | July 4, 2018

Does the $60K limit include the taxes?
I configured mine with AWD and without Autopilot. 2 reasons:

1) I can get autopilot later but not AWD

2) It would be > than $60,000 with both and then can't get the tax credit.

Randy Carrera | July 5, 2018

@cfutter $60k limit does not include taxes. My build came in at $59,700 before taxes, whew! I was given a signed Maryland form by Tesla at delivery. @gadgetware I too am waiting for my title number. Does anyone have an evidence whether that is necessary?

Good MD site: https://marylandev.org/incentives/

Goodman.Larry | July 5, 2018

If your referring to whether submitting the completed form is necessary: it is. Filed the completed form immediately after getting my plates. Got the $3k check a month or so later.

rob.kibler | July 5, 2018

The Maryland MVA confirmed today that it doesn't matter where you buy the car (to qualify for the excise tax credit), it only matters where you register the car.

peyush | July 5, 2018

Just talked to MVA and they said if the "selling price" of the car is $60,000, then car would not qualify for the rebate (even though form clearly states "Has a total purchase price not exceeding $60,000"). Tesla delivery confirmed destination charge will be included in the total price so now I'm at $60,000. Based on this information, I guess I will not qualify for the rebate. Also, obviously, if the destination charges were to increase in the future to match the other two models then the car would not qualify.

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