Maryland Transportation Section 13-815

      (a)      (1)      In this section the following words have the meanings indicated.

            (2)      "Automobile" means a 4-wheeled vehicle propelled by fuel that:

                  (i)      Is manufactured primarily for use on public streets, roads, and highways, other than for use exclusively on a rail or rails; and

                  (ii)      Is rated at not more than 8,500 pounds unloaded gross vehicle weight.

            (3)      "Excise tax" means the tax imposed under § 13-809 of this subtitle.

            (4)      "Maximum available power" means the maximum value of the sum of the heat engine and electric drive system power or other nonheat energy conversion devices available for a driver's command for maximum acceleration at vehicle speeds under 75 miles per hour.

            (5)      "Qualified electric vehicle" has the meaning stated in § 30 of the Internal Revenue Code.

            (6)      "Qualified hybrid vehicle" means an automobile that:

                  (i)      Meets all applicable regulatory requirements;

                  (ii)      Meets the current vehicle exhaust standard set under the federal Tier 2 program for gasoline-powered passenger cars under 40 C.F.R. Part 80 et seq.; and

                  (iii)      Can draw propulsion energy from both of the following onboard sources of stored energy:

                        1.      Gasoline or diesel fuel; and

                        2.      A rechargeable energy storage system.

      (b)      (1)      Except as provided in subsection (e) of this section, a credit is allowed against the excise tax imposed for a qualified electric vehicle or a qualified hybrid vehicle.

            (2)      Subject to the limitations under subsections (c) and (d) of this section, the credit allowed under this section equals 100% of the excise tax imposed for a vehicle.

            (3)      The credit allowed under this section does not apply to a vehicle titled on or after July 1, 2004.

      (c)      For a qualified electric vehicle, the credit allowed under this section may not exceed $2,000.

      (d)      (1)      For a qualified hybrid vehicle that has a rechargeable energy storage system that provides at least 5% of the vehicle's maximum available power, subject to paragraph (2) of this subsection, the credit allowed under this section may not exceed:

                  (i)      $250 if the vehicle's rechargeable energy storage system provides at least 5% but less than 10% of the maximum available power;

                  (ii)      $500 if the vehicle's rechargeable energy storage system provides at least 10% but less than 20% of the maximum available power;

                  (iii)      $750 if the vehicle's rechargeable energy storage system that provides at least 20% but less than 30% of the maximum available power; or

                  (iv)      $1,000 if the vehicle's rechargeable energy storage system that provides at least 30% of the maximum available power.

            (2)      If a qualified hybrid vehicle actively employs a regenerative braking system that supplies to the rechargeable energy storage system at least 20% of the energy available from braking in a typical 60 miles per hour to 0 miles per hour braking event, the maximum credit amount determined under paragraph (1) of this subsection shall be increased by:

                  (i)      $125 if the vehicle's regenerative braking system supplies to the rechargeable energy storage system at least 20% but less than 40% of the energy available from braking in a typical 60 miles per hour to 0 miles per hour braking event;

                  (ii)      $250 if the vehicle's regenerative braking system supplies to the rechargeable energy storage system at least 40% but less than 60% of the energy available from braking in a typical 60 miles per hour to 0 miles per hour braking event; or

                  (iii)      $500 if the vehicle's regenerative braking system supplies to the rechargeable energy storage system at least 60% of the energy available from braking in a typical 60 miles per hour to 0 miles per hour braking event.

      (e)      A credit may not be claimed under this section:

            (1)      For a vehicle unless the vehicle is registered in the State; or

            (2)      For a qualified electric vehicle unless the owner has already met any State or federal laws or regulations governing clean-fuel vehicle or electric vehicle purchases applicable during the calendar year in which the vehicle is titled.

      (f)      (1)      The Motor Vehicle Administration and the Maryland Energy Administration jointly shall adopt regulations to administer the credit under this section.

            (2)      The regulations adopted under this section shall specify the testing and calculation procedures to be used to determine whether a vehicle meets the qualifications for a credit under this section.

      (g)      On or after October 1 of each year, the Administration shall certify to the Comptroller the total amount of credits allowed under this section against the excise tax for the preceding fiscal year.