Local Option – Property Tax Credit for High Performance Buildings

Program Overview

Implementing Sector State
Category Financial Incentive
State Maryland
Incentive Type Property Tax Incentive
Administrator Programs locally administered
Start Date Property tax years beginning after 06/30/2004
Eligible Renewable/Other Technologies Solar - Passive, Solar Water Heat, Solar Space Heat, Solar Photovoltaics, Wind (All), Biomass, Geothermal Heat Pumps, Daylighting, Wind (Small), Hydroelectric (Small)
Eligible Efficiency Technologies Comprehensive Measures/Whole Building
Applicable Sectors Commercial, Industrial, Residential, Multifamily Residential
Incentive Amount Varies
Maximum Incentive Varies
Eligible System Size Specifically requires LEED Silver rating (all structures) or NGBS Silver rating (residential only), but other comparable systems or state approved green building guidelines are permitted

Summary

Similar to Maryland’s Local Option Property Tax Credit for Renewable Energy, Title 9 of Maryland’s property tax code creates an optional property tax credit for high performance buildings. This statute allows counties and municipalities to provide a credit against the property tax for buildings which achieve at least a silver rating according to the U.S. Green Building Council’s LEED standards, residential structures that achieve a silver rating under the International Code Council’s National Green Building Standard (NGBS), or structures which meet other comparable green building ratings or guidelines approved by the State. The provision specifically adding the NGBS (as opposed to the general language regarding “comparable” systems) was adopted by H.B. 158 in 2012, effective for tax years beginning after June 30, 2012.

The counties or municipalities which elect to provide this property tax credit may determine the amount of the property tax credit under this section, the duration of the property tax credit, the criteria and qualifications necessary to receive the credit, and any other necessary provisions. As of July 2015 at least four counties — Montgomery CountyHoward CountyBaltimore County, and Anne Arundel County — had adopted a tax credit under this statute. Carroll County has also adopted a green building property tax credit under a separate, county specific provision (Md Code: Property Tax § 9-308(e)) of Maryland law.  Please visit the links above for tax credit information on the incentives available in each county.

Authorities

Name Md Code: Property Tax § 9-242
Date Enacted 05/26/2004
Effective Date 06/01/2004

Contact

Organization:
Department of Assessments and Taxation
Address:
300 W. Preston Street, Room 605
Baltimore, MD 21201-2395
Phone:
(888) 246-5941
E-Mail: