Incentives/Policies for Renewables & Efficiency
Last DSIRE Review: 09/06/2012
||Sales Tax Incentive
|Eligible Efficiency Technologies:
||Clothes Washers, Refrigerators, Dehumidifiers, Lighting, Furnaces , Boilers, Heat pumps, Central Air conditioners, Programmable Thermostats, Room Air Conditioners
|Eligible Renewable/Other Technologies:
||Solar Water Heat, Geothermal Heat Pumps
|| General Public/Consumer
|Equipment Requirements:||Equipment must meet Energy Star criteria|
Md. TAX-GENERAL Code § 11-226|
11/19/2007 (subsequently amended)
07/01/2008 (exemption did not begin until 2011)
In November 2007, Maryland enacted legislation creating a sales and use tax "holiday" for certain energy-efficient appliances, beginning in 2011. Under the law, qualifying appliances purchased during a designated period are not subject to the state sales and use tax (6%). The holiday time frame is established as a three-day period running from "the Saturday immediately preceding the third Monday in February through the third Monday in February each year". In 2012, the holiday runs from February 18 to February 20. (It will vary in future years depending on how the designated time frame falls on the calendar.)
In order to qualify for the exemption, qualifying pieces of equipment must be designated as meeting or exceeding the efficiency requirements of the Energy Star program. The law defines eligible Energy Star product types as follows:
- Air conditioners (the Energy Star designation includes both central and room air conditioners)
- Clothes washers*
- Heat pumps
- Standard size refrigerators
- Compact fluorescent light bulbs
- Programmable thermostats**
The law also lists solar water heaters and heat pumps (presumably including geothermal heat pumps) as eligible for the exemption. However, a separate law offers a less restrictive year-round sales and use tax exemption for renewable energy equipment, including both solar water heaters and geothermal heat pumps.
*While the law also defines clothes dryers as an eligible appliance, the Energy Star program does not currently certify clothes dryers.
**The Energy Star specification for programmable thermostats was suspended December 31, 2009.
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.
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