Comptroller of Maryland. Serving the People. Peter Franchot, Comptroller
Maryland Taxes
Maryland Taxes: Find all tax-related information and services. Maryland's Money: Resource for transparent financial reporting. Comptroller of Maryland: Information and resources for government agencies, state employees, vendors, and the general public. Media Services: Outlet for agency and Comptroller news. Online Services: Links to all agency online services and applications. Search Engine: Find it Fast! Translate the website to many languages Home Page

Qualified Vehicle Tax Credit

An individual or corporation may claim a credit against the State income tax for the expense of registering a qualified vehicle in Maryland. The credit may not exceed the lesser of $400 for each qualified vehicle or the State income tax for the tax year.

The credit may be taken against corporate income tax, or the State portion of the personal income tax. A credit may not be allowed against more than one type of tax. Any unused credit amount for the tax year may not be carried forward to any other tax year.

No credit may be earned for any tax year beginning on or after January 1, 2020.

Sole proprietorships, corporations, and pass-through entities, such as partnerships, subchapter S corporations, limited liability companies and business trusts may claim the tax credit.

To qualify for the credit:

“Qualified vehicle” means a Class F (Tractor) vehicle described under § 13-923(a) of the Transportation Article that is titled and registered in Maryland. These “tractors” are the ones which pull trailers, as opposed to farm tractors.

How the credit is calculated:

For each qualified Class F tractor registered by the taxpayer in Maryland, the Comptroller will allow a Maryland income tax credit for the lesser of:

  1. The expenses of registering a Class F tractor in Maryland during the tax year; or
  2. $400 for each qualified Class F tractor in Maryland; or
  3. The State portion of the Maryland income tax liability for the tax year.

If the credit is more than the state tax liability, the unused credit may not be carried forward to any other tax year.

Documentation required:

A copy of the tax credit certificate from MVA must be included with your tax return when claiming this tax credit. However, the Qualified Vehicle Tax Credit is available only on an electronically-filed income tax return for the tax year in which the credit is being claimed. The Form 500CR section of the electronic return must be completed to claim the Maryland tax credit.

Links for Business Tax Credits
Tax Publications
Business Tax Credits
  Aerospace, Electronics, or Defense Contract Tax Credit
  Apprentice Employee Tax Credit
  Biotechnology Investment Incentive Tax Credit
  Businesses That Create New Jobs Tax Credit
  Cellulosic Ethanol Technology Research and Development Tax Credit
  Clean Energy Incentive Tax Credit
  Community Investment Tax Credit
  Commuter Tax Credit
  Cybersecurity Incentive Tax Credit
  Employer-Provided Long-Term Care Insurance Tax Credit
  Endow Maryland Tax Credit
  Endowments of Maryland Historically Black Colleges and Universities Tax Credit
  Enterprise Zone Tax Credit
  Film Production Activity Tax Credit
  Green Building Tax Credit
  Heritage Structure Rehabilitation Tax Credit
  Job Creation Tax Credit
  Maryland Disability Employment Tax Credit
  Maryland Employer Security Clearance Costs Tax Credits
  Maryland-Mined Coal Tax Credit
  One Maryland Economic Development Tax Credit
  Oyster Shell Recycling Tax Credit
  Qualified Vehicle Tax Credit
  Research and Development Tax Credits
  Wineries and Vineyards Tax Credit
Download for Adobe Reader Homepage