Maryland Laws Incentivize Electric Vehicles

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At one time, both guitars and violins were exclusively acoustic instruments. Although electric versions of both instruments were first invented about 90 years ago and electric guitars have been popular for about 70 years, it has taken much longer for electric violins to become popular.

However, over time, violinists found it impossible to produce the projection and balance needed to play with rock or jazz groups, particularly in large halls. I first used a pickup on my violin when I was a teenager. The pickup, which was attached either to the violin's bridge or top, was attached to a wire, which, in turn, was attached to an amplifier.

This arrangement didn't impair the tone quality of the violin. But it was a clunky arrangement and caused me and other violinists to be concerned that the pickup might damage our instruments. Pickups also could move when the instrument was played, and there could be an issue with feedback.

To address these concerns, many violinists eventually started playing electric violins, which usually feature built-in pickups that directly convert string vibrations into electrical signals. However, there is a trade-off in sound quality because electric violins lack the nuanced overtones produced by acoustic violins.

Recent advancements in materials and technology have significantly improved the quality of electric violins, making them more reliable, versatile, and accessible to a wider range of musicians. Now, many violin shops offer a selection of electric instruments in addition to traditional, acoustic violins.

So far, I’ve resisted the urge to buy an electric violin. However, I did recently get an all-electric car (EV) and installed a Level 2 charger in my garage. According to the Maryland Department of Transportation, my new EV is one of 112,986 EVs registered in Maryland. Approximately 35,000 of those EVs are registered in Montgomery County, where I am located.

Maryland has been proactive in passing laws to encourage EV ownership and installation of EV chargers. This article discusses some of these laws and how they affect residential and commercial real estate.

EV Charging and Condominiums and Homeowners’ Associations

The Maryland Right to Charge Law prevents condominium and homeowners’ associations (I’ll call both of these HOAs) from placing restrictions on homeowners who install EV charging equipment. The law voids existing recorded covenants and restrictions in HOA declarations, bylaws, or rules that would unreasonably restrict condo owners from installing EV charging equipment.

HOAs may under some circumstances require homeowners to obtain approval before installing an EV charging station. However, if homeowners must obtain approval from an HOA board before installing EV charging equipment, the board must process the homeowner’s application the same way the board processes applications for architectural modifications.

The board must approve the homeowner’s application unless the charging equipment would unreasonably impede the use of common areas or violate building or safety regulations. Further, generally, if the board does not give a written denial of the homeowner's application for the charging equipment within sixty days, it is automatically deemed approved. HOA boards also may not unreasonably restrict a homeowner’s installation of EV charging equipment in the homeowner’s deeded parking space.

Other Maryland Laws Relating to EV Charging

Maryland also requires that new residential construction include a Level 2 charging station or pre-wiring to support the installation of a Level 2 charger. This law only applies to residential construction with a garage, carport, or driveway where the charger might someday be installed. Howard County, Maryland also has a law requiring that new multifamily properties constructed after 2018 have either one Level 2 charger or pre-wiring to support a Level 2 charging station for every 25 parking spots.

Maryland has an EV rebate program that pays up to half the cost of installing a Level 2 or higher charging station, capped at $700 per charger for residential properties and $5,000 per charger for commercial properties. This program also is subject to funding availability and requires that a licensed electrician install the charger with any state and local electrical permit requirements for EV Level 2 charger installations, whether or not they qualify for a rebate.

Maryland also offers an excise tax credit/refund for eligible EV owners and lessees. In addition to the Maryland rebate/credit programs, depending on the census tract where the property is located, taxpayers installing EV charging stations may be eligible for a federal tax credit of up to $1,000. Utility companies also may offer benefits to EV owners.

Maryland also was the first state to pass vehicle-to-grid (V2G) legislation requiring utilities to allow EVs with bidirectional chargers to connect to the grid. Passed in April 2024, the Distributed Renewable Integration and Vehicle Electrification (DRIVE) Act requires that EVs be able to both draw energy from (i.e., charge vehicles) and inject energy into the electric grid.

Maryland law makes it illegal to park a non-EV vehicle in a public parking spot designated for EV charging. Also, EV owners may only park in EV charging spaces if their vehicle is actively charging. Property owners must install signage informing drivers that the spot is reserved for EVs and inform them that there is a $100 penalty for violations.

Additional Fees for EVs

I was surprised to learn that despite Maryland’s initiatives to encourage residents to purchase EVs, I will have to pay a $250 biennial surcharge to register my vehicle. Plug-in hybrid owners will pay a $200 additional biennial surcharge. This surcharge is designed to address a forecasted $3 Billion shortfall in funds for highway and transportation spending.

The goal is to replace the reduction in the gasoline tax revenues, which usually are earmarked for highway and transportation, resulting from EV ownership. Gasoline taxes, however, roughly correlate to the usage of public roads – someone who drives more will buy more gas and, therefore, pay more gasoline taxes. The EV surcharge applies equally to all EV owners, no matter how many miles they drive.

As a result, the EV surcharge doesn’t spread the cost of highway maintenance based on road use as equitably as the gasoline tax. However, based on PEPCO's calculator of cost savings from EV use, even for someone like me who doesn't have a long commute, the surcharge still represents a savings over the cost of owning a gasoline vehicle.

However, my EV will provide me with a slight benefit in highway use. For $5, I purchased an HOV permit, which allows me to drive my EV in HOV (high occupancy vehicle) lanes without meeting the minimum occupancy requirement. However, the permit will benefit me only while HOV restrictions in my area are in effect - 6-9AM (for southbound traffic) and 3:30-6:30 PM (for northbound traffic).

Conclusion

Most violinists may not be incentivized to buy an electric violin, but Maryland law generally incentivizes EV vehicle usage. Maryland property developers need to know the EV requirements for new construction. HOAs must know that Maryland law now limits their control over EV charger installation—regardless of what the HOA documents say. Maryland also has programs that incentivize EV vehicles and the installation of charging stations.

However, Maryland doesn't make accessing government benefits as easy as going into a store and buying an electric violin. While Maryland laws provide financial benefits that help some owners offset the burdens of mandated EV charger installation and the EV vehicle registration surcharge, the programs are administered by different government agencies (e.g., Department of Energy and Motor Vehicle Administration), so it can take effort to find them.

This series draws from Elizabeth Whitman’s background in and passion for classical music to illustrate creative solutions for legal challenges experienced by businesses and real estate investors.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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