Local Option - Property Tax Credit for Renewables and Energy Conservation Devices

Summary

Title 9 of Maryland’s property tax code provides local governments the option to allow a property tax credit for buildings equipped with a solar, geothermal or qualifying energy conservation device. These devices may be used to heat or cool the structure, to generate electricity to be used in the structure, or to provide hot water for use in the structure. The law was initially enacted in 1985, but at that time applied only to heating and cooling and water heating applications. Electricity production for on-site use was added in 2006.

Under this provision, counties determine the amount of the credit and are given the freedom to define solar, geothermal, and energy conservation devices. Counties also determine the length of time that the credit may be available up to a maximum of three years. It should be noted that the statute includes the city of Baltimore in this provision because Baltimore, the city, has its own jurisdiction as a county. Maryland’s local option tax incentive is unique because it is applied in the form of a credit -- not an exemption or exclusion as in the case of many other property tax programs. As of July 2020 at least five counties in Maryland offer a property tax credit under this section of the state code:

• Anne Arundel County 
• Harford County (solar and geothermal)
• Baltimore County (solar and geothermal)
• Montgomery County (solar, geothermal, and energy conservation)
• Prince George's County (solar and geothermal)

Interested parties may view the details of the local tax credits in each county (including county specific contacts) using the links above. Please check with your local county if it offers a tax credit.