Maryland
Incentives/Policies for Renewables & Efficiency
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Last DSIRE Review: 09/23/2009
| Incentive Type: |
Property Tax Financing Authorization |
| State: |
Maryland |
| Eligible Efficiency Technologies: |
Locally determined
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| Eligible Renewable/Other Technologies: |
Locally determined
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| Applicable Sectors: |
Commercial,
Residential,
Low-Income Residential
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| Financing Terms: | Maximum financing amount locally determined
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| Eligible Local Governments: | Counties, municipal corporations
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| Possible Revenue Sources: | Bond issuance |
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Authority 1:
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H.B. 1567
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| Date Enacted: | 05/19/2009 |
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Summary:
Note: It is important to note that the program described in this summary is not a state loan program. As a "local option" policy, the state legislation simply permits -- but does not require -- local governments to offer clean energy loan programs based on what has come to be known as the "property assessed clean energy" or PACE model. Residents should contact their local government to find out whether such a program is being offered or planned for their area.
In May 2009, Maryland enacted legislation permitting counties and municipal corporations to adopt resolutions or ordinances establishing clean energy loan programs based on the "property assessed clean energy" or PACE model. The legislation includes provisions permitting local governments to issue bonds to fund such financing programs. If adopted by a local governing body, the program allows local property owners to opt in to a renewable energy or eligible energy-efficiency loan program and repay the loan through a surcharge on their property tax bill. The surcharge remains attached to the property upon a change in ownership and is limited to the amount needed to recover costs associated with issuing bonds, financing the loans, and administering the program.
The authorizing legislation describes a series of details that must be included in the local legislation implementing such financing programs, although specific details are largely left at the discretion of the local government. Local governments may generally specify property owner eligibility, eligible improvements or technologies, and loan terms and conditions. However, the state legislation specifically prohibits commercial renewable energy projects larger than 100 kilowatts from participating in local clean energy loan programs. In addition, it dictates that local eligibility requirements for property owners address their ability to repay a loan through a process similar to mortgage loan approval. For a bond issuance, the local government may specify the principal amount, interest rate/variable rate, terms of sale, payment intervals, conditions for redemption before maturity, and other details as necessary. Bonds (serial or term) issued under this provision must mature no later than 40 years after their issue date.
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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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