Sales Tax Holiday for Energy-Efficient Appliances (Maryland)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Sales Tax Holiday for Energy-Efficient Appliances|
|Incentive Type||Sales Tax Incentive|
|Applicable Sector||General Public/Consumer|
|Eligible Technologies||Boilers, Central Air conditioners, Clothes Washers, Dehumidifiers, Furnaces, Heat pumps, Lighting, Programmable Thermostats, Refrigerators, Room Air Conditioners, Geothermal Heat Pumps, Solar Water Heat|
|Energy Category||Energy Efficiency Incentive Programs, Renewable Energy Incentive Programs|
|Amount|| 100% exemption
|Equipment Requirements||Equipment must meet Energy Star criteria|
|Start Date|| 2011
|Maximum Incentive|| None
|Program Administrator||Comptroller of Maryland|
In November 2007, Maryland enacted legislation creating a sales and use tax "holiday" for certain energy-efficient appliances, beginning in 2011. Under the law, qualifying appliances purchased during a designated period are not subject to the state sales and use tax (6%). The holiday time frame is established as a three-day period running from "the Saturday immediately preceding the third Monday in February through the third Monday in February each year". In 2012, the holiday runs from February 18 to February 20. (It will vary in future years depending on how the designated time frame falls on the calendar.)
In order to qualify for the exemption, qualifying pieces of equipment must be designated as meeting or exceeding the efficiency requirements of the Energy Star program. The law defines eligible Energy Star product types as follows:
- Air conditioners (the Energy Star designation includes both central and room air conditioners)
- Clothes washers*
- Heat pumps
- Standard size refrigerators
- Compact fluorescent light bulbs
- Programmable thermostats**
The law also lists solar water heaters and heat pumps (presumably including geothermal heat pumps) as eligible for the exemption. However, a separate law offers a less restrictive year-round sales and use tax exemption for renewable energy equipment, including both solar water heaters and geothermal heat pumps.
* While the law also defines clothes dryers as an eligible appliance, the Energy Star program does not currently certify clothes dryers.
**The Energy Star specification for programmable thermostats was suspended December 31, 2009.
|Contact Name||Information Specialist - Shop Maryland|
|Department|| Comptroller of Maryland
|Phone 2||(410) 260-7980|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||Md. TAX-GENERAL Code § 11-226|
|Date Effective||07/01/2008 (exemption did not begin until 2011)|
|Date Enacted|| 11/19/2007 (subsequently amended)
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.