Sponsor seeks to convert electric vehicle tax credit to dealer‑fronted rebate; dealers support, fiscal limits flagged

Delegate Fraser‑Hidalgo returned to the committee with House Bill 2 16 to shift Maryland's electric vehicle incentive from a post‑purchase tax credit to an upfront dealer‑delivered rebate model.

"Essentially what it does is it moves incentives for electric vehicles from having to look at it as a tax credit program to a rebate program so that when people purchase, people purchase electric vehicles, they can get that rebate right there when they purchase the vehicle through the dealership," the sponsor said. The bill retains income and price limits previously considered and maintains program caps described in earlier versions.

Dealers and dealer groups told the committee they prefer an upfront rebate because it is delivered at point of sale and increases consumer uptake. Peter Kitzmiller, president of the Maryland Automobile Dealers Association, and Michael Johansen of the Washington Area New Automobile Dealers Association reiterated that rebates are easier for customers and dealers. Kitzmiller noted the fund has been exhausted early in recent years—reimbursements ran out in months in prior cycles—and suggested lowering the per‑vehicle rebate amount to stretch available funding.

Witnesses discussed recent statutory changes intended to offset reduced gas tax revenue, such as registration surcharges and weight‑based registration increases for heavier vehicles. Sponsor and proponents acknowledged the program's budgetary cap and urged the committee to craft funding and administrative details so dealers will not be left advancing funds without rapid reimbursement.

Ending: Dealers and dealer associations urged support for a rebate model while cautioning that existing appropriation limits make per‑vehicle amounts and program duration a fiscal decision for the General Assembly.