Your complete guide to Maryland EV tax credits and rebates in 2025

If you're considering switching to an electric vehicle in Maryland, you'll find a robust network of rebates and incentives waiting for you. From utility-managed charging programs that can earn you $120 annually to time-of-use rates that slash your charging costs, Maryland has created an incentive structure that focuses on long-term savings and grid optimization. 

Maryland residents can take advantage of state-level programs that provide up to $3,000 in tax credits for vehicle purchases, plus substantial utility rebates for EV charger installations. The state's Electric Vehicle Supply Equipment (EVSE) Rebate Program offers up to $700 for residential installations and $5,000 for commercial projects, helping offset the costs of home charging infrastructure.

We'll walk you through every available program—state, utility, and charging infrastructure—and help you understand how to maximize your savings while going electric in the Old Line State.

Maryland has built a comprehensive network of state and utility incentives that provide immediate financial relief for EV adoption. The state's approach combines direct tax credits with utility programs that don't require large tax bills to claim, making electric vehicles accessible to residents across all income levels.

State tax credit programs

Maryland runs a straightforward state tax credit program that provides substantial savings for EV purchases. The program works by allowing eligible residents to claim credits against their state tax bill, providing immediate financial benefit when filing taxes.

The Maryland EV Tax Credit provides up to $3,000 when buying or leasing an EV or PHEV (plug-in hybrid electric vehicle). The credit applies to new vehicles that cost under $50,000 and have a battery capacity of at least 4 kWh. Businesses in the state can claim this credit on up to ten vehicles, making it valuable for fleet electrification.

This program has proven popular among Maryland residents because it doesn't have the complex battery component requirements that limited federal programs, and it applies to both purchases and leases.

Home charging transforms your EV ownership experience and saves serious money. While public charging can cost $0.31 per kWh, home charging typically runs $0.20 per kWh in Maryland. 

Maryland utilities recognize that widespread EV adoption depends on convenient home charging, which is why several utilities across the state offer substantial charger incentives designed to make home charging accessible even for houses that need electrical upgrades.

Utility rebate programs

Installing a home EV charger transforms your EV ownership experience by providing convenient, cost-effective charging. Home charging typically costs $0.07-$0.16 per kWh with Maryland's time-of-use rates, compared to $0.18-$0.34 per kWh at public charging stations. For the average Maryland EV driver, home charging can save $300-$500 annually compared to relying on public charging.

Maryland recognizes that widespread EV adoption depends on accessible home charging, which is why the state created one of the most comprehensive EV charger rebate programs in the region.

Maryland EVSE rebate program

The Maryland Electric Vehicle Supply Equipment (EVSE) Rebate Program provides substantial rebates for both residential and commercial charging installations. With $2.5 million in funding allocated for 2025, this first-come, first-served program covers equipment costs, electrical upgrades, permits, installation labor, and even design work for commercial projects.

• Residential rebates provide a maximum of $700, covering up to 50% of total project costs for Level 2 charger installations. The program is designed to make home charging accessible to homeowners regardless of their electrical setup.

• Commercial rebates also cover up to 50% of costs, with a cap of $5,000 for Level 2 chargers and DC Fast chargers. This makes the program valuable for businesses, multifamily properties, and public charging installations.

The rebate covers comprehensive project costs, including the charger itself, necessary electrical upgrades, permits, installation costs, and design work for commercial projects. This holistic approach ensures that electrical panel limitations don't prevent participation.

Utility EV charger rebate programs

• Southern Maryland Electric Cooperative (SMECO) requires compatible Level 2 EV chargers for participation in their managed charging programs, effectively subsidizing charger installation through annual earnings of $120 for managed charging participants or $50 for data-sharing participants.

• Potomac Edison Company offers substantial incentives for multifamily properties, providing up to $20,000 (50% of project costs) for Level 2 and DC Fast Charging installations, with additional support for underserved communities.

Electrical panel upgrade support

Many Maryland homes, particularly those built before 1990, need electrical panel upgrades to support Level 2 EV charging safely. Most home chargers require a 240-volt, 40-amp circuit, and older 100-amp electrical panels often lack sufficient capacity.

The Maryland EVSE Rebate Program specifically includes electrical upgrade costs in its rebate calculations, recognizing that panel upgrades are often necessary for safe EV charger installation. Expect to pay $1,500-$4,000 for panel upgrades, but the state rebate can cover up to 50% of these costs.

At the federal level, the Energy Efficient Home Improvement Tax Credit covers up to 30% of electrical panel upgrade costs (capped at $600) when the upgrade supports EV charging, but this credit only applies to work completed before December 31, 2025.

Before installing an EV charger, have a qualified electrician assess your electrical panel's capacity. Many utility rebate programs require this assessment anyway, and it ensures your home can safely handle the additional electrical load.

Time-of-use rates and smart charging incentives

Maryland utilities offer some of the most advantageous time-of-use rates in the region for EV owners. Charging during off-peak hours can cost 60-80% less than peak rates, translating to significant annual savings.

Most modern EVs and home chargers can automatically start charging during off-peak hours, making these savings completely hands-off once programmed.

According to data from the Alternative Fuels Data Center, Maryland has approximately 1,723 public charging stations statewide as of September 2025, including 5,358 public charging ports. Of those publicly available chargers, 4,106 are Level 2 stations and 1,252 are DC fast chargers.

Where to find public charging stations

The state continues investing in charging infrastructure to support growing EV adoption. Stations are rapidly appearing along highways to make longer trips more convenient, with most charging options located in Baltimore, followed by Columbia

Public charging costs and economics

Public charging in Maryland averages $0.31 per kWh. Many networks now use variable pricing that accounts for location, time of day, and power delivery, so costs can fluctuate throughout the day.

Level 2 public charging typically costs less but charges more slowly, making it better suited for longer stops like shopping or dining.

Maryland makes going electric more practical with generous state tax credits, utility rebates, and managed charging programs that reward smart energy use. By combining these programs—and pairing your EV with solar panels—you can maximize savings on both installation and ongoing charging. Drivers can claim up to $3,000 through Maryland’s EV tax credit and apply early for the state’s EVSE rebate program, which offers comprehensive coverage for home charger installation costs. Utilities like SMECO provide added value with $120 annual managed charging incentives and off-peak rates as low as $0.03–$0.07 per kWh. With continued investment in clean energy infrastructure through 2030 and beyond, Maryland is building a future where driving electric is affordable, rewarding, and central to the state’s clean transportation goals.