Special Property Assessment for Renewable Heating & Cooling Systems (Maryland)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Special Property Assessment for Renewable Heating and Cooling Systems|
|Incentive Type||Property Tax Incentive|
|Applicable Sector||Commercial, Industrial, Residential|
|Eligible Technologies||Geothermal Heat Pumps, Solar Space Heat|
|Energy Category||Renewable Energy Incentive Programs|
|Amount||Eligible property is assessed at no more than the value of a conventional system|
|Program Administrator||Department of Assessments and Taxation|
Title 8 of Maryland’s property tax code includes a state-wide special assessment for solar and geothermal heating and cooling systems. Under this provision, such systems are to be assessed at not more than the value of a conventional system for property tax purposes if no conventional system exists in the building. If a solar or geothermal heating and cooling system is installed in addition to a conventional system in a building, the combined system may be assessed at no more than the value of the conventional system -- essentially a full exemption for the qualifying equipment.
Geothermal heating and cooling systems were added as eligible for this incentive by H.B 377 (2008) for tax years beginning after June 30, 2008 (the property tax year begins on July 1st). The 2008 law also clarifies how different types of solar energy systems are treated for property tax purposes. As indicated above, solar heating and cooling systems are granted a special assessment that negates their increased value compared to conventional systems. Solar photovoltaic (PV) and solar hot water systems in contrast receive a full exemption from real property taxes under a separate provision in the tax code. Click here for more information on this exemption.
|Contact Name||Henry Sikorski|
|Department||Department of Assessments and Taxation|
|Division||Real Property Valuation Division|
|Address||300 W. Preston Street|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||Md Code: Property Tax § 8-240|
|Date Effective||07/01/2008 (as amended)|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.