Anne Arundel County – Solar and Geothermal Equipment Property Tax Credits

Program Overview

Implementing Sector Local
Category Financial Incentive
State Maryland
Incentive Type Property Tax Incentive
Web Site http://www.aacounty.org/Finance/Forms.cfm
Administrator Anne Arundel County Office of Finance
Start Date 01/01/2007 (solar); 01/01/2009 (geothermal)
Counties Anne Arundel County
Eligible Renewable/Other Technologies Solar Water Heat, Solar Space Heat, Solar Photovoltaics, Geothermal Heat Pumps
Applicable Sectors Residential
Incentive Amount 50% of the cost of materials and installation less any federal and state grants and state solar energy tax credits
Maximum Incentive $2,500

Summary

Anne Arundel County offers a one-time credit from county property taxes on residential dwellings that use solar and geothermal energy equipment for heating and cooling, and solar energy equipment for water heating and electricity generation. Photovoltaic (PV) systems and geothermal systems were initially not eligible for the tax credit, but PV systems were added by legislation enacted in January 2009 (County Bill 81-08) and geothermal heating and cooling systems were added in April 2010 (County Bill 17-10). Solar energy devices must be installed on or after January 1, 2007 in order to be eligible for the tax credit. Geothermal equipment must be installed on or after January 1, 2009 in order to be eligible for the tax credit. Expenditures for solar pool heating are not eligible for the tax credit.

The one-time tax credit is calculated as the lesser of the following:

  • 50% of the cost of materials and installation of the solar energy equipment, less the amount of federal and state grants and state solar energy tax credits; or
  • $2,500

It is important to note that the tax credit is credited from the taxes on the dwelling itself and not those levied on the land. Applications must be filed on or before June 1 of the year immediately preceding the year for which the credit is sought. In 2012 new legislation (Council Bill 84-12) removed the former June, 1 2012 application deadline for PV systems. Please contact the Anne Arundel County Office of Finance for tax credit applications and further information.

Authorities

Name Anne Arundel County Code § 4-2-312
Effective Date 01/01/2007
Name Anne Arundel County Code § 4-2-309
Effective Date 06/10/2010

Contact

Organization:
Anne Arundel County
Address:
44 Calvert Street, Rm. 110
Annapolis, MD 21401
Phone:
(410) 222-1144
E-Mail: