Montgomery County - High Performance Building Property Tax Credit (Maryland)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Montgomery County - High Performance Building Property Tax Credit|
|Incentive Type||Property Tax Incentive|
|Applicable Sector||Commercial, Industrial, Multi-Family Residential|
|Eligible Technologies||Custom/Others pending approval, Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Biomass, Geothermal Heat Pumps, Daylighting, Small Hydroelectric|
|Energy Category||Renewable Energy Incentive Programs, Energy Efficiency Incentive Programs|
|Amount||10% to 75% credit from property taxes owed on building for 3-5 years; varies by building type and building rating|
|Eligible System Size||Building must meet minimum LEED standards (CS, NC, or EB) or equivalent to qualify|
|Maximum Incentive|| Total: 5 million per fiscal year limit for all buildings |
Silver rating: 1.5 million per fiscal year
|Program Administrator||Department of Finance|
|Date added to DSIRE||2009-02-04|
|Last DSIRE Review||2012-12-12|
|References||DSIREDatabase of State Incentives for Renewables and Efficiency|
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. Montgomery County has exercised this option by offering property tax credits on new or extensively modified multi-family residential and commercial buildings that meet certain high performance building standards. An "extensive modification" is defined as a structural modification that alters 50% or more of the building's square footage.
The tax credit generally uses the U.S. Green Building Council's LEED rating system as a metric for determining how "green"' a building is, although buildings that achieve comparable ratings under other green building standards are also eligible for the tax credit. Tax credits are available for buildings that achieve minimum ratings under the LEED New Construction (NC); Core and Shell (CS); and Existing Building (EB).
The amount (10-75%) and term (3-5 years) of the tax credit varies based on the type project and the rating it achieves. See the table below for details. The term "covered" refers to new or substantially reconstructed non-residential and multi-family residential buildings over 10,000 square feet, which are already required by county law to meet the basic LEED certification standard or its equivalent. Thus the minimum standard for property tax credits on buildings of this type is correspondingly higher.
|Contact Name||High Performance Building Property Tax Information - Montgomery County|
|Department||Montgomery County Department of Finance|
|Division||Division of Treasury|
|Address||255 Rockville Pike, Suite L-15|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||Montgomery County Code Sec. 52-18Q|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.