Maryland Solar Rebates

Maryland Clean Energy Production Incentive Tax Credit
The Clean Energy Incentive Tax Credit, enacted in 2006, offers Marylanders a state income tax credit for electricity generated by qualified resources of 0.85 cents per kilo-watt hour, and 0.50 cents per kilo-watt hour for electricity generated from co-firing a qualified resource with coal. These credits can be claimed over a period of five years. Annual tax credits cannot exceed one fifth of the initial credit certificate issued by MEA. This credit is available to individuals and corporations that build and generate electricity from qualified resources operational on or after January 1, 2006, but before January 1, 2011.

Note: MEA is prohibited from issuing Initial Credit Certificates after December 31, 2010.
In order to receive these credits, eligible participants must apply for an Initial Credit Certificate with the Maryland Energy Administration. The Administration shall issue these certificates on a first-come, first-served basis. Total Initial Credit Certificates will not exceed $25,000,000 by 2010, with each Initial Credit Certificate not exceeding $2,500,000 to any eligible taxpayer. Visit the Maryland Energy Administration for more information, regulations and application.

"Property tax financing" allows property owners to borrow money to pay for energy improvements. The amount borrowed is repaid through an increased property tax assessment over a period of years. Maryland allows property owners to opt in to a renewable energy or eligible energy-efficiency loan program through a written agreement with the municipality for a special assessment and lien on the property owner's property. The lien and surcharge pass with the property if the property transfers ownership. Contact your local government to find out if it offers financing for renewable energy and/or energy efficiency through special property tax assessments.  
 
Local governments that create such financing programs may specify the principal amount, interest rate/variable rate, terms of sale, payment intervals, conditions for redemption before maturity, and purposes for which surcharge dollars may be spent. Residential, low-income residential or commercial property owners will be judged on their ability to repay a loan through a process similar to mortgage loan approval. Local governments use this charge to recover costs associated with issuing bonds, financing the loans, and administering the program. Bonds (serial or term) will mature no later than 40 years after their issue date.

Harford County offers a tax credit for real property taxes imposed on residential or nonresidential buildings or other structures that use solar or geothermal devices for heating, cooling, or generating electricity for on-site consumption. The credit amount is equal to one year of total real property taxes or $2,500, whichever is less. Total real property taxes includes all real property taxes that would have been paid by the taxpayer for that year for the host building or structure, but not on the land. The original 2006 credit applied only to solar heating and cooling devices and had a limit of $1,000. The 2007 amendments added geothermal devices as an eligible technology, electricity generation as an eligible end-use, and increased the maximum credit to $2,500. 
 
In order to qualify for a tax credit, devices must meet national safety and performance standards as set by a nationally recognized testing laboratory for that type of device. A one-time application must be submitted to the Harford County Director of Administration on or before October 1 prior to the taxable year for which the credit is sought. The total tax credits allowed for any one year may not exceed $150,000 and credits will be issued on a first-come, first-served basis. Subsequent applications will be carried over to succeeding years. Contact the Harford County Office of the Director of Administration for an application.