Today’s Solutions: July 06, 2022

Maryland wanted more people to switch to electric cars, so the state put $6 million aside in a fund this year that would provide tax credits to residents who buy an EV. Under the deal, Maryland offered a $100 credit per kilowatt-hour of battery capacity for EVs and plug-in hybrids (with a maximum $3,000 rebate). To the surprise of many, however, so many drivers have applied for the credit that there’s a waiting list with more than 700 applicants.

The fact that the state burned through the funds so quickly speaks to the growing popularity of EVs and plug-in hybrids. The number of EVs registered in Maryland reportedly doubled from 2017 to 2018, and it reached more than 18,000 in February. Maryland has a goal to register 300,000 EVs by 2025, and it doubled its funding for the 2019 EV tax credits. But a backlog of applicants from the previous fiscal year meant that all of the money for 2019 was spoken for before July 1st—which is before the start of the fiscal year.

As EV sales continue to increase and funds for tax credits dry up, states might have to get creative and look toward incentives like fast charging and low power rates to keep encouraging people to make the switch to electric.

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