Baltimore County - Property Tax Credit for High Performance Buildings and Homes

July 03, 2020

Summary

The state of Maryland permits local governments (Md Code: Property Tax § 9-242) to offer property tax credits for high performance buildings if they choose to do so. Baltimore County exercised this option in 2006 by creating property tax credits for new and existing multi-family residential (50+ units) and commercial buildings that meet certain high performance building standards. In 2008, the county also adopted a similar provision creating property tax credits for newly constructed high performance homes, and in 2010 added provisions for energy efficiency improvements in existing homes.

The credit is formulated as a percentage (%) reduction in total county real property taxes assessed on the property over the course of several years. The level and duration of the allowable credit varies according to building type and level of performance. The non-residential property tax credits are based wholly on achieving a specified rating and certification under the United States Green Building Council (USGBC) LEED green building rating system. The property tax credit for homes also uses green building rating systems as a qualification standard, but includes an additional track that allows a home to qualify for a credit based on its level of efficiency as compared to an energy use baseline. The credit for high performance homes originally required a minimum LEED for Homes rating, but the law was amended during 2012 to allow homes rated under the the International Code Council (ICC) NGBS to qualify. Both standards include not only single-family homes, but also attached housing, and low-rise (up to 6 stories), multi-family condominiums and rental housing. The table below summarizes the different tax credit levels and durations for different building types.

Commercial and Multi-family Residential (income producing, 50+ units)

Performance Level	Credit Amount	Term
LEED-NC Platinum or NGBS Emerald	80%	5 years
LEED-NC Gold or NGBS Gold	60%	5 years
LEED-NC Silver or NGBS Silver	50%	5 years
LEED-CS Platinum	70%	5 years
LEED-CS Gold	50%	5 years
LEED-CS Silver	40%	5 years
LEED-EB Platinum	50%	3 years
LEED-EB Gold	25%	3 years
LEED-EB Silver	10%	3 years

Residential Homes

Performance Level	Credit Amount	Term
LEED for Homes Platinum or NGBS Emerald	100%	3 years
LEED for Homes or NGBS Gold	60%	3 years
LEED for Homes or NGBS Silver	40%	3 years
30%+ Energy Efficiency Improvement	Varies by % Improvement, 30% Minimum	3 years
All Performance Levels, Carbon Neutral	Varies by Performance	5 years

For residential home, new construction projects that take the energy performance track, the baseline for determining a 30% energy improvement is the county building code. For existing homes the baseline is determined by the existing energy efficiency of the structure prior to the improvements.

Under either the commercial credit or the residential credit, only one credit is permitted per building. In order to claim a credit, the property owner must submit an application or before the June 1 immediately preceding the property tax year for which the credit is sought. Changes in property ownership do not affect the credit, which runs with the property. The credit may be terminated if it is determined that alterations which do not comply with the law have been made to the structure. Property tax credits for commercial structures are limited to $5 million in total while property tax credits for residential homes are limited to $1 million in any fiscal year. There are no limits for individual buildings.

Program Overview

Implementing Sector:	Local
Category:	Financial Incentive
State:	Maryland
Incentive Type:	Property Tax Incentive
Web Site:	http://www.baltimorecountymd.gov/Agencies/environment/sustainability/residents.html
Administrator:	Baltimore County Office of Budget and Finance
Start Date:
Eligible Renewable/Other Technologies:	Solar - Passive Solar Water Heat Solar Space Heat Solar Photovoltaics Wind (All) Biomass Hydroelectric Geothermal Heat Pumps Daylighting Comprehensive Measures/Whole Building Wind (Small)
Incentive Amount:	Commercial: 10% - 80% of county real property taxes assessed for 3 - 5 years Homes (LEED or NGBS): 40% - 100% of county real property taxes assessed for 3 - 5 years Homes (Energy Improvements): varies, equal to the % of energy efficiency improvement over a baseline of existing home or the energy code for new homes
Maximum Incentive:	No limits for individual buildings but total credits issued are limited as follows: Commercial: $5 million total in aggregate Homes: $1 million in aggregate in any fiscal year
Equipment Requirements:	Commercial: Minimum Silver certification under LEED-NC, LEED-CS, or LEED-EB Homes: Minimum Silver certification under LEED for Homes or NGBS, or minimum energy savings of 30% compared to baseline

Authorities

Name:	Baltimore County Code § 11-2-203.1
Effective Date:	08/24/2006

Contact

Name:	Baltimore County - Tax Payer Services
Address:	400 Washington Ave, Room 150 Towson MD 21204-4665
Phone:	(410) 887-2404
Email:	financeinfo@baltimorecountymd.gov

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.