Property Tax Exemption for Solar and Wind Energy Systems (Maryland)

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Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Maryland

Name Property Tax Exemption for Solar and Wind Energy Systems
Incentive Type Property Tax Incentive
Applicable Sector Commercial, Industrial, Residential
Eligible Technologies Solar Water Heat, Solar Thermal Electric, Photovoltaics, Wind
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 100% real property tax exemption for solar and wind energy property


























Program Administrator Maryland Department of Assessments and Taxation

Date added to DSIRE 2007-05-24
Last DSIRE Review 2014-10-15



References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Summary

In May 2007, Maryland established a property tax exemption for residential solar energy systems. Under this law solar energy devices “installed to heat or cool a dwelling, generate electricity to be used in the dwelling, or provide hot water for use in the dwelling” were exempt from state -- but not local -- property taxes. However, in April 2008 H.B. 377 was enacted, repealing this exemption beginning July 1, 2008. In place of the rescinded exemption, H.B. 377 inserted another provision exempting solar photovoltaic (PV) and solar hot water systems from real property taxes. The exemption now applies equally to state and local real property taxes. In addition, by removing the term "dwelling" and replacing it with "structure", the revised exemption appears to no longer be limited to residential systems.

In May 2009 the exemption was amended yet again by H.B. 1171 to add "residential wind energy equipment" as an eligible technology. In order to qualify, equipment must be sited on residential property and produce electricity to be used in a structure on that property. The new law also revised the definition of eligible solar property to include devices that use "solar thermal electric energy" to generate electricity for use in a structure. A separate piece of legislation, S.B. 621, subsequently amended the definition of solar energy property to include property that generates electricity which is put on the electrical grid (e.g., as in a net metering arrangement). These new provisions took effect July 1, 2009.

A separate provision of Maryland property tax law offers a special assessment for geothermal and solar heating and cooling systems. Thus, solar hot water, PV, and wind energy systems are granted an exemption from real property taxes while solar and geothermal heating and cooling systems are granted a special assessment that makes their assessed value equivalent to a conventional system.


Incentive Contact

Department Department of Assessments and Taxation
Division Real Property Valuation Division
Address 300 W. Preston Street

Place Baltimore, Maryland
Zip/Postal Code 21201-2395
Phone (410) 767-1199



Website http://www.dat.state.md.us/
     
     

Authorities (Please contact the if there are any file problems.)

Authority 1: Md Code: Property Tax §7-242
Date Effective 2008-07-01
Date Enacted 04/24/2008 (subsequently amended)



















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"