Last DSIRE Review: 01/27/2010
Program Overview:
| State: |
Maryland |
| Incentive Type: |
Property Tax Incentive |
| Eligible Efficiency Technologies: |
Equipment Insulation, Furnaces , Boilers, Heat pumps, Programmable Thermostats, Caulking/Weather-stripping, Building Insulation, Windows, Doors, Custom/Others pending approval |
| Eligible Renewable/Other Technologies: |
Solar Water Heat, Solar Space Heat, Photovoltaics, Geothermal Heat Pumps |
| Applicable Sectors: |
Residential |
| Amount: | Solar and Geothermal Devices: 50% of eligible costs
Energy Conservation Devices: 100% of eligible costs
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| Maximum Incentive: | Space Heating and Electricity Generation: (Solar and Geothermal): $5,000
Water Heating (Solar and Geothermal): $1,500
Energy Conservation: $250 per fiscal year |
| Program Start Date: | 12/10/2009 |
| Web Site: |
http://www.montgomerycountymd.gov/dectmpl.asp?url=/Content/dep/en...
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Date Effective: 08/04/2008 |
Date Effective: 01/27/2009 (retroactive) |
Date Effective: 12/10/2009 |
Summary:
Montgomery County offers property tax credits on residential, owner-occupied structures equipped with solar, geothermal, and energy conservation devices. Solar and geothermal systems that heat or cool a structure; provide hot water for a structure; or generate electricity for on-site use in a structure are eligible for a tax credit. Energy conservation devices include a variety of common energy efficiency related improvements but do not include standard household appliances such as washing machines or clothes dryers. All systems must meet performance and safety standards set by a nationally recognized testing laboratory. The tax credit is effective for all property tax years beginning after June 30, 2008.
The geothermal and solar property tax credit is equal to 50% of the cost of the system, up to $5,000 for heating, cooling systems, and electricity generating systems* and $1,500 for water heating systems. Residents may claim only one geothermal or solar energy tax credit per year. The tax credit for energy conservation devices is limited to the cost of the measure up to $250 per fiscal year. Eligible costs include parts, components and accessories necessary to operate the device as well as reasonable installation costs. Only costs incurred during the 12 months preceding a credit application are eligible for a tax credit.
The amount of the tax credit may not exceed the taxes imposed on the property during a fiscal year. Excess credits accrued during a year may be carried forward for up to two additional years. The total value of credits granted by the county during a fiscal year may not exceed $400,000 for solar and geothermal devices and $100,000 for energy conservation devices. In the event that applications during a fiscal year exceed this limit, a credit may be granted the following year or years in the order applications are received. Prior to Council Bill 39-09 enacted in December 2009, the credit limits were set at $250,000 annually for solar and geothermal devices and $250,000 annually for energy conservation devices.
Persons wishing to claim the credit must first obtain a certification for their system from the Montgomery County Department of Permitting Services. Applications for the tax credit are handled by the Montgomery County Department of Finance. Please see the program website for additional information on eligible measures and applications.
*The original law was silent on the maximum credit for electricity generating devices and cooling systems, but was clarified to be $5,000 by Council Bill 02-09. Although this change was not enacted until March 2009, it applies the $5,000 limit retroactively to applications filed on or after January 27, 2009.
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