Local Option - Property Tax Credit for Renewables and Energy Conservation Devices

November 20, 2024

Summary

Title 9 of Maryland’s property tax code provides local governments the option to allow a property tax credit for buildings equipped with a solar, geothermal or qualifying energy conservation device. These devices may be used to heat or cool the structure, to generate electricity to be used in the structure, or to provide hot water for use in the structure. The law was initially enacted in 1985, but at that time applied only to heating and cooling and water heating applications. Electricity production for on-site use was added in 2006.

Under this provision, counties determine the amount of the credit and are given the freedom to define solar, geothermal, and energy conservation devices. Counties also determine the length of time that the credit may be available up to a maximum of three years. It should be noted that the statute includes the city of Baltimore in this provision because Baltimore, the city, has its own jurisdiction as a county. Maryland’s local option tax incentive is unique because it is applied in the form of a credit -- not an exemption or exclusion as in the case of many other property tax programs. As of July 2020 at least five counties in Maryland offer a property tax credit under this section of the state code:

Interested parties may view the details of the local tax credits in each county (including county specific contacts) using the links above. Please check with your local county if it offers a tax credit.

Program Overview

Implementing Sector:	State
Category:	Financial Incentive
State:	Maryland
Incentive Type:	Property Tax Incentive
Web Site:
Administrator:	Programs locally administered
Start Date:
Eligible Renewable/Other Technologies:	Solar Water Heat Solar Space Heat Solar Thermal Electric Solar Thermal Process Heat Solar Photovoltaics Geothermal Heat Pumps Custom/Others pending approval
Incentive Amount:	Varies by jurisdiction; credit may be available for up to 3 years.
Maximum Incentive:	Varies by jurisdiction.

Authorities

Name:	Md Code: Property Tax § 9-203
Date Enacted:	1985 (subsequently amended)

Contact

Name:	Information Specialist - DAT
Organization:	Department of Assessments and Taxation
Address:	300 W. Preston Street, Room 605 Baltimore MD 21201-2395
Phone:	(888) 246-5941
Email:	inquiry@dat.state.md.us

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.