Sales and Use Tax Exemption for Renewable Energy Equipment (Maryland)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Sales and Use Tax Exemption for Renewable Energy Equipment|
|Incentive Type||Sales Tax Incentive|
|Applicable Sector||Commercial, Industrial, Residential, General Public/Consumer, Agricultural|
|Eligible Technologies||Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Photovoltaics, Wind, Geothermal Heat Pumps|
|Energy Category||Renewable Energy Incentive Programs|
|Program Administrator||Comptroller of Maryland|
|References||DSIREDatabase of State Incentives for Renewables and Efficiency|
In April 2008, the Maryland enacted legislation exempting geothermal and solar energy equipment from the state sales and use tax. Geothermal equipment is defined as "equipment that uses ground loop technology to heat and cool a structure". Solar energy equipment is defined as "equipment that uses solar energy to heat or cool a structure, generate electricity to be used in a structure, or provide hot water for use in a structure". Solar energy equipment does not include "equipment that is part of a non-solar energy system or that uses any type of recreational facility or equipment as a storage medium". These distinctions appear to indicate that solar pool heating equipment, and possibly passive solar materials, are not eligible for the exemption.
Two pieces of legislation expanding the sales tax exemption were enacted in May 2009. H.B. 1171 added residential wind energy equipment as eligible for this incentive. Residential wind energy equipment is equipment installed on a residential property that uses wind energy to generate electricity for use in a residential structure on that property. S.B. 621 revised the definition of solar energy equipment to include systems that supply electricity to the grid (e.g., through a net metering agreement). The amendments contained in both laws took effect July 1, 2009.
|Contact Name||Information Specialist (Sales Tax) - Comptroller of Maryland|
|Department||Revenue Administration Center|
|Division||Taxpayer Service Section|
|Phone 2||(410) 260-7980|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||Md Code: General Tax §11-230|
|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.