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Incentives/Policies for Renewables & Efficiency

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Montgomery County - High Performance Building Property Tax Credit   

Last DSIRE Review: 12/12/2012
Program Overview:
State: Maryland
Incentive Type: Property Tax Incentive
Eligible Efficiency Technologies: Custom/Others pending approval
Eligible Renewable/Other Technologies: Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Biomass, Geothermal Heat Pumps, Daylighting, Small Hydroelectric
Applicable Sectors: Commercial, Industrial, Multi-Family Residential
Amount:10% to 75% credit from property taxes owed on building for 3-5 years; varies by building type and building rating
Maximum Incentive:Total: $5 million per fiscal year limit for all buildings
Silver rating: $1.5 million per fiscal year
Gold rating: $2.5 million per fiscal year
Eligible System Size:Building must meet minimum LEED standards (CS, NC, or EB) or equivalent to qualify
Start Date:03/17/2008
Web Site:
Authority 1:
Date Enacted:
Date Effective:
Montgomery County Code Sec. 52-18Q

The state of Maryland permits local governments (Md Code: Property Tax § 9-242) to offer property tax credits for high performance buildings if they choose to do so. Montgomery County has exercised this option by offering property tax credits on new or extensively modified multi-family residential and commercial buildings that meet certain high performance building standards. An "extensive modification" is defined as a structural modification that alters 50% or more of the building's square footage.

The tax credit generally uses the U.S. Green Building Council's LEED rating system as a metric for determining how "green"' a building is, although buildings that achieve comparable ratings under other green building standards are also eligible for the tax credit. Tax credits are available for buildings that achieve minimum ratings under the LEED New Construction (NC); Core and Shell (CS); and Existing Building (EB).

The amount (10-75%) and term (3-5 years) of the tax credit varies based on the type project and the rating it achieves. See the table below for details. The term "covered" refers to new or substantially reconstructed non-residential and multi-family residential buildings over 10,000 square feet, which are already required by county law to meet the basic LEED certification standard or its equivalent. Thus the minimum standard for property tax credits on buildings of this type is correspondingly higher.

Building Type Certification Type Exemption Amount Term
Covered LEED-NC or LEED-CS Platinum 75% 5 years
Covered LEED-NC or LEED-CS Gold 25% 5 years
Covered LEED-EB Platinum 50% 3 years
Covered LEED-EB Gold 10% 3 years
Not Covered LEED-NC or LEED-CS Platinum 75% 5 years
Not Covered LEED-NC or LEED-CS Gold 50% 5 years
Not Covered LEED-NC or LEED-CS Silver 25% 5 years
Not Covered LEED-EB Platinum 50% 3 years
Not Covered LEED-EB Gold 25% 3 years
Not Covered LEED-EB Silver 10% 3 years

Property taxpayers must apply for the tax credit within one year after a building is certified as a high performance building. There is a limit of $5 million per fiscal year (July 1 - June 30) on the total volume of tax credits granted, and limits of $1.5 million and $2.5 million for buildings rated LEED Silver and LEED Gold respectively. Credits in excess of these limits will be issued for the subsequent fiscal year or years.

  High Performance Building Property Tax Information - Montgomery County
Montgomery County Department of Finance
Division of Treasury
255 Rockville Pike, Suite L-15
Rockville , MD 20850
Phone: (240) 777-8965
Web Site:
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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 2014 - 2015 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.