Montgomery County - Residential Energy Conservation Property Tax Credit

July 03, 2020


Note: As originally enacted, this program offered property tax credits for the installation of solar and geothermal energy devices in addition to energy conservation devices. In November 2011 the county enacted legislation (County Bill 28-11) terminating the program for solar and geothermal energy devices unless the taxpayer has entered a contract for costs or submitted an application on or before November 8, 2011. The change in law does not affect the sections of the law that allow property tax credits for various other energy conservation devices.

Montgomery County offers property tax credits on residential, owner-occupied structures for the installation of energy conservation devices. 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 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 for energy conservation deviecs that are granted by the county during a fiscal year may not exceed $100,000. 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.

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.

Program Overview

Implementing Sector: Local
Category: Financial Incentive
State: Maryland
Incentive Type: Property Tax Incentive
Web Site:
Administrator: Montgomery County Department of Finance
Start Date: 07/01/2008
Eligible Renewable/Other Technologies:
  • Equipment Insulation
  • Furnaces
  • Boilers
  • Heat pumps
  • Programmable Thermostats
  • Energy Mgmt. Systems/Building Controls
  • Caulking/Weather-stripping
  • Building Insulation
  • Windows
  • Doors
  • Custom/Others pending approval
Incentive Amount: 100% of eligible costs
Maximum Incentive: $250 per fiscal year


Name: Montgomery County Code Sec. 52-18R
Date Enacted: 05/05/2008
Effective Date: 08/04/2008
Name: County Council Bill 28-11
Date Enacted: 11/21/2011
Effective Date: 11/21/2011


Name: Energy Conservation Device Property Tax Information - Montgomery County
Organization: Montgomery County Department of Finance
Address: 255 Rockville Pike, Suite L-15
Rockville MD 20850
Phone: (240) 777-8931

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.