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The U.S. Department of Energy and the North Carolina Clean Energy Technology Center are excited to announce that a new, modernized DSIRE is under construction. The new version of DSIRE will offer significant improvements over the current version, including expanded data accessibility and an array of new tools for site users. The new DSIRE site will be available in December 2014. Staff are currently working hard on the new version of DSIRE but are also maintaining the content of the current version of DSIRE. Thank you for your continued support and patience during this transition. We hope you are as excited for December as we are! The U.S. Department of Energy and the North Carolina Solar Center are excited to announce that a new, modernized DSIRE is under construction. The new version of DSIRE will offer significant improvements over the current version, including expanded data accessibility and an array of new tools for site users. The new DSIRE site will be available in the summer of 2014. Staff are currently working hard on the new DSIRE and are unfortunately only able to make minimal updates to the DSIRE website at this time. We apologize for any inconvenience and thank you for using DSIRE.

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Maryland

Maryland

Incentives/Policies for Renewables & Efficiency

Printable Version
Clean Energy Production Tax Credit (Personal)   

Last DSIRE Review: 06/25/2013
Program Overview:
State: Maryland
Incentive Type: Personal Tax Credit
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Municipal Solid Waste, Co-firing, Anaerobic Digestion, Tidal Energy, Wave Energy, Ocean Thermal
Applicable Sectors: Commercial, Residential, Multi-Family Residential, Agricultural
Amount:$0.0085/kWh ($0.005/kWh for co-fired electricity)
Maximum Incentive:$2.5 million (total credits allowed during five-year period)
Eligible System Size:No specific system size restrictions; however, the initial credit certificate minimum is $1,000
Carryover Provisions:Credits are refundable
Start Date:01/01/2006
Expiration Date:12/31/2015
Web Site: http://energy.maryland.gov/Business/CleanEnergyTaxCredit.html
Authority 1:
Date Enacted:
Date Effective:
Md. TAX-GENERAL Code ยง 10-720
05/11/2000 (subsequently amended)
07/01/2000
Authority 2:
Date Effective:
COMAR 14.26.05
12/12/2012 (most recent amendments)
Summary:

Maryland offers a production tax credit for electricity generated by wind, geothermal energy, solar energy, hydropower, hydrokinetic, municipal solid waste and biomass resources. Eligible biomass resources include anaerobic digestion, landfill gas, wastewater-treatment gas, and non-hazardous segregated waste 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.

The tax credit has been in place since 2000, but has been amended several times since the initial enactment. The most recent substantive amendments were made in May 2010 by H.B. 494 (effective July 1, 2010), which extended the facility in service deadline from 2010 to 2015; set a minimum tax credit limit of $1,000; and made excess tax credits refundable. In May 2011, the definition of eligible waste materials was amended slightly by S.B. 958 to remove language requiring that such materials be "solid" and "cellulosic".

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, 2016, 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, 2016, 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). As a result of H.B. 494, effective July 1, 2010 the MEA is no longer permitted to issue initial credit certificates for amounts of less than $1,000. At the general renewable energy credit rate of $0.0085/kWh, a facility would need to produce 23,530 kWh annually to meet this minimum. 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; the earliest tax year for which the credit may be claimed; and the five-year period during which qualifying electricity generation qualifies for the tax credit. 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. Formerly, credits exceeding a taxpayer's state income tax for a taxable year could be carried forward to succeeding taxable years for up to 10 years. However, as a result of H.B. 494 credits in excess of income tax for a taxable year are now refundable.

Applications for credit certificates will be approved on a first-come, first-served basis. Certificates may not be issued after December 31, 2015. 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. Through March 2010 initial credit certificates totaling roughly $5.1 million had been issued to 10 qualifying facilities. Certificates for three landfill gas facilities and one commercial wind facility made up the vast majority of approvals, with the balance coming from several small scale wind and solar facilities. 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.


 
Contact:
  Public Information Officer - MEA
Maryland Energy Administration
60 West Street, 3rd Floor
Annapolis, MD 21401
Phone: (410) 260-7655
Phone 2: (800) 723-6374
E-Mail: meainfo@energy.state.md.us
Web Site: http://www.energy.state.md.us
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.