Maryland Energy Storage Income Tax Credit Program Maxes Out in Year Two
By Abigail Peryea, Energy Grants Administrator
Maryland’s landmark Energy Storage Income Tax Credit Program jumped to 100% utilization in year two (Tax Year 2019). The Maryland Energy Administration (MEA) issued a total of 175 tax credits to 173 residential homeowners and two business entities. The 173 residential systems totaled 4,011.63 kWh of energy storage duration. Each of the 173 participating homes have enough backup power to last 16.7 hours on average during a power grid outage.
Understanding Energy Storage
Energy storage can be used like a battery back-up to keep electricity flowing in the event of a power outage or energy storage systems can be combined with a renewable energy technology like solar panels. When combined with a renewable energy source like solar, an energy storage system is like a bathtub and the solar panels are like the faucet that runs when the sun shines until the bathtub is full of energy.
Maryland made national headlines in 2017 when it became the first state to pass a bill allowing taxpayers to claim an income tax credit for energy storage devices. Tax credit certificates are calculated differently for systems that are installed in homes and commercial properties. The tax credit is calculated as 30 percent of total installed cost of the energy storage system. Tax credits are capped at $5,000 for residential systems and $75,000 for commercial systems.
MEA is now accepting applications for the Maryland Energy Storage Income Tax Credit Program for Tax Year 2020. The deadline to apply is January 15, 2021 at 11:59 PM EST. For more information about the Maryland Energy Storage Income Tax Credit Program please visit the MEA Website or contact us at firstname.lastname@example.org or by phone at (410) 537-4000.