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Energy Storage Systems Income Tax Credit Program

Current Status:

The Maryland Energy Administration (MEA) is seeking informal public input related to the Energy Storage Income Tax Credit Program as proposed regulations for the Program are drafted. A list of topics of interest to the Maryland Energy Administration can be found at:

Request for Request for input_Energy Storage System.

Comments on this subject matter area will be accepted by the Maryland Energy Administration through August 31, 2017. Please submit comments via email to EnergyStorageCredit.MEA@maryland.gov or via postal mail at Energy Storage Tax Credit, Maryland Energy Administration, 1800 Washington Blvd, Suite 755, Baltimore, MD 21230.

Comments submitted under this informal request for input are subject to the Public Information Act.

Questions can be directed to EnergyStorageCredit.MEA@maryland.gov.

History

In May 2017, Governor Hogan signed the Income Tax Credit- Energy Storage Systems Act (S.B 0758). From 2018 through 2022, this Act provides Maryland taxpayers with an opportunity to obtain an income tax credit for a portion of the costs of installing a qualifying energy storage system. This Act, which amends Section 10-719 of the General Tax Article of the Maryland Code, instructs the Maryland Energy Administration to award tax credit certificates to qualifying applications. To carry out this tax credit, the Administration is developing a new program, which will be called the Energy Storage Systems Income Tax Credit Program. Pursuant to the Act, the Maryland Energy Administration, in consultation with the Comptroller of Maryland, will develop and adopt regulations implementing this program and would like public input as a part of this process.

A copy of the enrolled Income Tax Credit-Energy Storage Systems Act can be viewed at http://mgaleg.maryland.gov/2017RS/chapters_noln/Ch_389_sb0758E.pdf

Program Details

  • The first year for the Energy Storage Systems Income Tax Credit Program will be tax year 2018, which begins January 1, 2018.
  • The Energy Storage Systems Income Tax Credit may not be claimed for an energy storage system installed before January 1, 2018, of after December 31, 2022.
  • The Maryland Energy Administration may not issue an aggregate amount of tax credit certificates exceeding $750,000 in a taxable year.
    • Tax credit certificates may not exceed 30% of the total installed costs of the energy storage system.
    • Energy storage systems installed on a residential property are capped at a maximum of $5,000 and energy storage systems installed on a commercial property are capped at a maximum of $75,000.
  • Applications that qualify for an Energy Storage Tax Credit Certificate shall be approved on a first-come, first-served basis.

 

ADDITIONAL INFORMATION

If you have questions about the program, please contact EnergyStorageCredit.MEA@maryland.gov.

General tax questions should be directed to the Comptroller of Maryland’s office at taxhelp@comp.state.md.us  or 410-260-7980.