Maryland
Incentives/Policies for Renewables & Efficiency
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Last DSIRE Review: 11/06/2009
| Incentive Type: |
Corporate Tax Credit |
| State: |
Maryland |
| Eligible Renewable/Other Technologies: |
Solar Thermal Electric,
Photovoltaics,
Landfill Gas,
Wind,
Biomass,
Hydroelectric,
Geothermal Electric,
Municipal Solid Waste,
Co-firing,
Anaerobic Digestion
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| Applicable Sectors: |
Commercial,
Industrial,
Residential,
Utility,
Agricultural
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| Amount: | $0.0085/kWh ($0.005/kWh for co-fired electricity) |
| Maximum Incentive: | $2.5 million (total credit during five-year period) |
| Carryover Provisions: | Remainder of credit carried forward to succeeding taxable years until credit is used or until expiration of the 10th taxable year after the taxable year in which the credit began |
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Web Site: |
http://energy.maryland.gov/
incentives/allprograms/cep_taxcredit.asp
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Authority 1:
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Md. TAX-GENERAL Code § 10-720
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| Date Enacted: | 2000 (subsequently amended) |
| Date Effective: | 07/01/2000 |
| Expiration Date: | 12/31/2010 |
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Authority 2:
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COMAR 14.26.06
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| Date Effective: | 02/26/2007 |
| Expiration Date: | 12/31/2010 |
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Summary:
Maryland offers a production tax credit for electricity generated by wind, geothermal energy, solar energy, hydropower, small irrigation power, municipal solid waste and biomass resources. Eligible biomass resources include anaerobic digestion, landfill gas, wastewater-treatment gas, and cellulosic material derived from forest-related resources (excluding old-growth timber and mill residues consisting of sawdust or wood shavings)*, from waste pallets and crates, or from agricultural sources. The list of eligible resources is generally the same as those eligible for the federal renewable electricity production tax credit (PTC), except the Maryland law contains added provisions related to biomass and biogas technologies.
To qualify, a facility that "primarily uses" eligible resources to generate electricity must (1) be placed in service on or after January 1, 2006, but before January 1, 2011, or (2) generate electricity from an eligible resource that is co-fired with coal and initially begins co-firing an eligible resource on or after January 1, 2006, but before January 1, 2011, regardless of when the original facility was placed in service.
An individual or corporation that applies for and receives certification from the Maryland Energy Administration (MEA) may claim a credit equal to 0.85 cents per kilowatt-hour ($0.0085/kWh) against the state income tax, for a five-year period, for electricity generated by eligible resources. The credit for electricity generated by co-firing is 0.5 cents per kilowatt-hour ($0.005/kWh). The electricity generated must be sold to an unrelated person during the taxable year. The MEA indicates that a net metering or interconnection agreement is sufficient documentation for this requirement.
Certificates issued by the Maryland Energy Administration will state the maximum amount of credit over a five-year period and the earliest tax year for which the credit may be claimed. The maximum amount of credit is based on estimated annual energy production during a five-year period, or $2.5 million. The sum of all credits statewide may not exceed $25 million. If the credit in any taxable year exceeds a taxpayer's state income tax, the remainder of the credit may be carried forward and applied to succeeding taxable years until the credit is used or until the expiration of the 10th taxable year after the taxable year in which the credit began.
Applications for credit certificates will be approved on a first-come, first-served basis. Certificates will not be issued after December 31, 2010. If, over a three-year period, a taxpayer does not claim on average at least 10% of the maximum credit amount stated in the certificate, the Maryland Energy Administration may cancel part of the certificate. In October 2007 the first credit certificate approved under this program was awarded to a landfill methane gas project at the Baltimore County Eastern Sanitary Landfill. The 3 MW project is operated by Pepco Energy Services and the tax credit is valued at $770,661.
Further information on certificate applications and other program rules is available from the program website link at the top of this page.
*Eligible mill residues include bark, chips, slabs, and edging, although slabs and edging are usually made into chips.
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Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.
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