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(a) A taxpayer may receive a one-time property tax credit against the general county tax for any residential building in which a fire sprinkler system was not legally required to be installed, if an approved fire sprinkler system is installed on or after July 1, 2000.
(b) For each residential building where a sprinkler system is installed, the credit must not exceed the lower of:
(1) the total cost of installing the sprinkler system; or
(2) 50 percent of the general county property tax attributable to the residential building.
(c) The Department of Finance must administer this credit and include with each residential property tax bill a notice of the availability of the credit and where to obtain more information.
(d) A taxpayer must apply for the tax credit in the year the sprinkler system is installed to receive the credit in that tax year or the next tax year. The taxpayer must:
(1) show that the installed sprinkler system complies with codes and standards established by the State Fire Prevention Commission and any applicable County building and fire safety codes, and
(2) document the cost to the taxpayer of the sprinkler system.
(e) The County Executive may adopt regulations under method (2) to implement this Section.
(f) The Executive must report annually to the County Council on the use of this tax credit. (2000 L.M.C., ch. 15; 2001 L.M.C., ch. 28, § 11; 2002 L.M.C., ch. 28, §§ 11, 15 and 16; 2003 L.M.C., ch. 23, § 1; 2016 L.M.C., ch. 7, § 2.)
Editor’s note—The effective date of the amendments made to this section by 2001 L.M.C., ch. 28, § 11, is the same effective date as 2000 L.M.C., ch. 15.
(a) In this Section the following words have the meanings indicated.
Arts and Entertainment District, Arts and Entertainment Enterprise, and Qualifying Residing Artist are defined in Section 4-701 of Article 83A of the Maryland Code.
Base year means the taxable year immediately before the taxable year in which a property tax credit under this section is granted.
Base year value means the value of the property used to determine the assessment on which the property tax was imposed for the base year. Base year value does not include any property first assessed in the base year.
Eligible assessment means the difference between the base year value and the actual assessed value for the applicable taxable year in which the tax credit under this section is granted.
(b) The Director of Finance must allow a tax credit, as authorized by state law, to a taxpayer against the County property tax imposed on a manufacturing, commercial, or industrial building that:
(1) is located in an arts and entertainment district; and
(2) is wholly or partially constructed or renovated to be capable for use by a qualifying residing artist or an arts and entertainment enterprise.
(c) A tax credit granted under this Section applies for 10 years, as provided in subsection (d), for that portion of the building that is used by a qualifying residing artist or an arts and entertainment enterprise.
(d) The Director must calculate a tax credit allowed under this Section as follows:
(1) Except for properties allowed an Enterprise Zone Tax Credit, the amount of the tax credit under this Section is the following percentage of the amount of property tax imposed on the eligible assessment of the property entitled to the credit:
(A) 80% in each of the first 5 taxable years after the calendar year when the property initially is entitled to the credit;
(B) 70% in the 6th taxable year;
(C) 60% in the 7th taxable year;
(D) 50% in the 8th taxable year;
(E) 40% in the 9th taxable year; and
(F) 30% in the 10th taxable year.
(2) For properties allowed an Enterprise Zone Tax Credit, the amount of the tax credit under this Section is 20% of the amount of property tax imposed on the eligible assessment of the property entitled to the credit for each of the 10 taxable years after the calendar year when the property initially is entitled to the credit. The credit under this Section is in addition to the Enterprise Zone Tax Credit. (2002 L.M.C., ch. 1, § 2; 2008 L.M.C., ch. 26; 2016 L.M.C., ch. 7, § 2.)
(a) The Director of Finance must allow a tax credit against the County property tax imposed on a dwelling that is owned by a surviving spouse of a fallen law enforcement officer or fallen rescue worker if the Director of Finance certifies that the taxpayer was qualified under State law for the credit before the end of the taxable year.
(b) The amount of the credit is 100 percent of the County property tax due from the taxpayer, subject to any other limits in State law.
(c) The County Executive may issue regulations under method (2) to administer this tax credit.
(d) In this Section:
(1) “dwelling”, “surviving spouse”, “fallen law enforcement officer”, and “fallen rescue worker” have the meanings provided in the State law authorizing this property tax credit;
(2) a qualified surviving spouse is deemed to “own” a dwelling if the surviving spouse has or shares any legal responsibility to pay State or County property tax on the dwelling;
(3) “law enforcement officer” means an individual who is authorized by law to make arrests in an official capacity as a member of any local, state, or federal government law enforcement agency; and
(4) “rescue worker” means an individual who is a member of any public, private, or volunteer fire, rescue, or emergency medical service. (2003 L.M.C., ch. 24, § 1; 2006 L.M.C., ch. 33, § 1; 2016 L.M.C., ch. 7, § 2.)
Editor’s note—2003 L.M.C., ch. 24, § 2, states: Effective date for tax credit. Section 52-18N of the Code, as added by this Act, applies to taxable years beginning after June 30, 2003.
(a) An employer may receive an annual tax credit against the County personal property tax for the purchase of a new home computer or new laptop computer to establish a new off- site employee workstation, if the computer is purchased after December 31, 2005. This tax credit does not apply to the operating personal property of a public utility.
(b) The amount of the tax credit must not exceed 50% of the cost of each new home computer or new laptop computer. The aggregate tax credit allowed for any taxpayer in any tax year must not exceed $2,000.
(c) The Department of Finance must administer this credit. The Department must allow each tax credit in the order in which the Department receives the application for the credit.
(d) The total amount of credits allowed in each tax year must not exceed:
(1) $100,000 in 2006;
(2) $175,000 in 2007; and
(3) $250,000 in 2008.
Starting in 2009, the County Council must set the total amount of credits allowed in each future tax year by resolution. If the Council takes no action for any year, the amount allowed for the prior year also applies to that year.
(e) An employer is eligible for and must apply for the tax credit within 12 months after a new computer purchase. The tax credit must be applied in the tax year of the purchase or the following tax year. The employer must:
(1) show that the computer will be used for telecommuting;
(2) affirm that the employee works at home at least 78 days per calendar year or an alternative minimum number of days set by regulation; and
(3) document the date of purchase and the cost of the computer.
(f) The County Executive must adopt regulations under method 2 to implement this Section.
(g) The County Executive or a designee must report annually to the County Council on the use of the tax credit and provide information on the number of employees telecommuting under this credit. (2005 L.M.C., ch. 27, § 1; 2006 L.M.C., ch. 33, § 1; 2016 L.M.C., ch. 7, § 2.)
(a) The Director of Finance must allow a tax credit each year against the general County tax and all special service area taxes imposed on a nonprofit swim club that uses its facility exclusively to provide a recreational outlet for a local community.
(b) For each taxable year, the Director must calculate the amount of the credit so that the credit equals the property tax owed.
(c) The County Executive may issue regulations under method (2) to administer this tax credit. (2006 L.M.C., ch. 26, § 1; 2016 L.M.C., ch. 7, § 2.)
Editor’s note—2006 L.M.C., ch. 26, § 2, states, in part: Section 52-18P of the County Code, as added by Section 1 of this Act, applies to any taxable year beginning on or after July 1, 2006.
(a) Definitions. In this Section the following words have the meanings indicated:
(1) “Covered building” means a newly constructed or extensively modified non- residential or multi-family residential building that has or will have at least 10,000 square feet of gross floor area.
(2) “Extensively modified” means any structural modification which alters more than 50% of the building’s gross floor area, as indicated on the application for a building permit. Extensively modified does not include any modification that is limited to one or more of the following building systems: mechanical; electrical; plumbing; heating, ventilation, and air conditioning (HVAC); and fire protection.
(3) “High performance building” means:
(A) A covered building that achieves:
(1) A gold or platinum rating from the USGBC for LEED-NC, LEED-CS, or LEED-EB; or
(2) An energy and environmental design standard that the Director of the Department of Permitting Services finds is equivalent to a gold or platinum rating from the USGBC for LEED-NC, LEED- CS, or LEED-EB; and
(B) Any other building that achieves:
(1) A silver, gold, or platinum rating from the USGBC for LEED- NC, LEED-CS, or LEED-EB; or
(2) An energy and environmental design standard that the Director of the Department of Permitting Services finds is equivalent to the silver, gold or platinum rating from the USGBC for LEED- NC, LEED-CS, or LEED-EB.
(4) “LEED-CS” means the Leadership in Energy and Environmental Design - Core and Shell rating system administered by the USGBC.
(5) “LEED-EB” means the Leadership in Energy and Environmental Design - Existing Building rating system administered by the USGBC.
(6) “LEED-NC” means the Leadership in Energy and Environmental Design - New Construction rating system administered by the USGBC.
(7) “Property tax” means the general County tax and all special service area taxes.
(8) “USGBC” means the US Green Building Council.
(b) Credit. Subject to the restrictions in subsections (c), (d), and (e), the Director of the Department of Finance must allow a tax credit each eligible year against the property tax imposed on a high performance building.
(c) Application and sunset dates. To qualify for a tax credit under this Section, a taxpayer must submit an application of intent to apply for the credit by January 1, 2022 and either:
(1) for LEED-EB project certification, receive LEED-EB project certification for an eligible LEED-EB building and submit an application to the Director by January 1, 2023; or
(2) for LEED-CS or LEED-NC certification, receive a building permit for an eligible LEED-CS or LEED-NC building and submit an application to the Director by January 1, 2024.
(d) Amount of credit.
(1) For a covered building, the amount of the credit is:
(A) 25% of the property tax owed on the building for 5 years, if the building achieves a gold rating for LEED-NC or LEED-CS or an equivalent standards;
(B) 75% of the property tax owed on the building for 5 years, if the building achieves a platinum rating for LEED-NC or LEED-CS or an equivalent standard;
(C) 10% of the property tax owed on the building for 3 years, if the building achieves the gold rating for LEED-EB or an equivalent standard; or
(D) 50% of the property tax owed on the building for 3 years, if the building achieves the platinum rating for LEED-EB or an equivalent standard.
(2) For any other building, the amount of the credit is:
(A) 25% of the property tax owed on the building for 5 years, if the building achieves a silver rating for LEED-NC or LEED-CS or an equivalent standard;
(B) 50% of the property tax owed on the building for 5 years, if the building achieves a gold rating for LEED-NC or LEED-CS or an equivalent standard;
(C) 75% of the property tax owed on the building for 5 years, if the building achieves a platinum rating for LEED-NC or LEED-CS or an equivalent standard;
(D) 10% of the property tax owed on the building for 3 years, if the building achieves the silver rating for LEED-EB or an equivalent standard;
(E) 25% of the property tax owed on the building for 3 years, if the building achieves the gold rating for LEED-EB or an equivalent standard; and
(F) 50% of the property tax owed on the building for 3 years, if the building achieves the platinum rating for LEED-EB or an equivalent standard.
(e) Annual limits.
(1) Subject to the annual limits in paragraph (2) and the carryover rules in paragraph (3), the Director must grant credits in the order in which the Department of Finance receives complete applications.
(2) During any fiscal year the total credits granted to:
(A) All buildings under this Section must not exceed $5 million.
(B) Buildings that achieve a silver rating or equivalent standard must not exceed $1.5 million; and
(C) Buildings that achieve a gold rating or equivalent standard must not exceed $2.5 million.
(3) A complete application that, if granted, would cause any of the limits set in paragraph (2) to be exceeded, must be granted in the next fiscal year or years based on the order in which the Department of Finance received the application.
(f) Regulations. The County Executive may issue regulations under method (2) to administer this tax credit. (2007 L.M.C., ch. 20, § 1; 2010 L.M.C., ch. 49, § 1; 2016 L.M.C., ch. 7, § 2; 2017 L.M.C., ch. 24, §3; 2020 L.M.C., ch. 28, § 1.)
Editor’s note—2021 L.M.C., ch. 28, §2, revises 2020 L.M.C., ch. 28, § 2, as follows: Sunset Clause. Section 52-103 of the County Code must sunset, and must and have no further force and effect, on January 1, 2033.
2007 L.M.C., ch. 20, § 2, states: Applicability. Section 52-18Q, as added by Section 2 of this Act, applies to any building which is certified as a high performance building after the Act takes effect [Effective Date: March 17, 2008].
(a) Intent. The intent of this Section is to:
(1) encourage building owners to increase the energy performance of existing buildings;
(2) incentivize building owners to reduce the energy and climate impacts of existing buildings, as the built environment generates more than half of the County’s measured community-wide greenhouse gas emissions;
(3) advance the County’s aggressive climate goals of an 80 percent reduction in greenhouse gas emissions by 2027 and zero emissions by 2035;
(4) institute regular review of the tax credits outlined in this Section to ensure that they are meeting the goals under paragraphs (1) through (3); and
(5) implement tax credits under Sections 9-203 and 9-242(a) of the Tax-Property Article of the Maryland Code, as amended.
(b) Definitions. In this Section the following words have the meanings indicated:
Accredited building professional means an individual that holds a valid and current credential from a building certification organization.
Baseline ENERGY STAR Score means the ENERGY STAR score of a building calculated over any consecutive 12-month period when the scored building is at least 50 percent occupied.
BRE Global means the Building Research Establishment Global.
BREEAM means the Building Research Establishment Environmental Assessment Method rating system administered by BRE Global.
Building certification organization means a third-party organization that administers the rating systems identified in this Section.
Building Sustainability Tax Credit is the property tax credit received for earned building certifications described in this Section.
Director means the Director of the Department of Finance or the Director’s designee.
Energy conservation device means any equipment, device, or material that reduces the demand for conventional fuels or increases the efficiency of these fuels, but is not a standard household appliance, including:
(1) insulation in any wall, roof, floor, foundation, or heating and cooling distribution system;
(2) a storm window or door, multi-glazed window or door, heat-absorbing or heat-reflective glazed and coated window and door system, or additional glazing, reduction in glass area, and other window and door system modification that reduces energy consumption;
(3) an automated energy control system;
(4) a heating, ventilating, or air-conditioning and distribution system modification or replacement;
(5) caulking, weather-stripping, and air sealing;
(6) replacement or modification of a lighting fixture to reduce the energy use of the lighting system;
(7) an energy recovery system;
(8) a day lighting system;
(9) a measure that reduces the usage of water or increases the efficiency of water usage; or
(10) any other installation or modification of equipment, device, or other material intended to decrease energy consumption.
Energy-efficient building means a non-residential or multi-family residential building that: (1) has or will have at least 10,000 square feet of gross floor area; (2) has received a Certificate of Occupancy from the Department of Permitting Services; (3) has achieved at least a minimum 50 percent occupancy rate for at least 12 consecutive months; and (4) has demonstrated energy improvements consistent with the requirements of this Section.
Energy Reduction Tax Credit is the property tax credit received for energy performance improvements described in this Section.
ENERGY STAR Data Verification Checklist means a report generated in the ENERGY STAR Portfolio Manager tool to document property use details and energy consumption.
ENERGY STAR Portfolio Manager means the no-cost web-based energy management tool developed and maintained by the U.S. Environmental Protection Agency to track and assess building energy performance.
ENERGY STAR Score means the numerical measure of a building’s energy use generated through the use of ENERGY STAR Portfolio Manager.
ENERGY STAR score metric reference data means the market data used by the U.S. Environmental Protection Agency to generate the ENERGY STAR Score.
Energy Use Intensity or EUI refers to the amount of energy used in a building per square foot per year.
Equity Emphasis Area means an area identified as an equity emphasis area by National Capital Region Transportation Planning Board.
Improved ENERGY STAR Score means the ENERGY STAR score of a building calculated within a consecutive 12-month period when the scored building is at least 50 percent occupied, demonstrating energy savings resulting from the use of a qualifying energy conservation device.
LEED means the Leadership in Energy and Environmental Design rating system administered by the USGBC.
Occupancy means the percentage of a building that is occupied and operational.
Property tax means the general County property tax and all special service area taxes.
USGBC means the United States Green Building Council.
(c) Credit. The Director must allow a tax credit each eligible year against the property tax imposed on an energy-efficient building under this Section.
(d) Application. An application by the owner of an energy-efficient building for a tax credit must be in the form prescribed by the Director and include:
(1) a description and installation date of the energy conservation device installed in the building;
(2) the ENERGY STAR Portfolio Manager Data Verification Checklists documenting the baseline and improved (within the past year) ENERGY STAR scores of an existing energy-efficient building, signed by an accredited building professional; and
(3) if the Building Sustainability Tax Credit is sought, verified documentation demonstrating qualification within the past year for the Building Sustainability Tax Credit in subsection (f).
(e) Energy Reduction Tax Credit authorized under Section 9-203 of the Tax-Property Article of the Maryland Code.
(1) An energy-efficient building may receive an Energy Reduction Tax Credit for achieving energy use reductions under this subsection and, if that credit is granted, may receive:
(A) an additional Building Sustainability Tax Credit under subsection (f); and
(B) an expanded credit under subsection (g) for buildings located in Equity Emphasis Areas.
(2) For the Energy Reduction Tax Credit, the percentage of the annual County property tax credit, awarded for 2 years, is calculated by subtracting an energy-efficient building’s 12-month baseline ENERGY STAR score from the improved 12-month ENERGY STAR score, then multiplying the difference by the multiplier below based on the improved ENERGY STAR score:
(A) if the improved ENERGY STAR score falls between 1-24, multiply the difference by 1.0;
(B) if the improved ENERGY STAR score falls between 25-49, multiply the difference by 1.5;
(C) if the improved ENERGY STAR score falls between 50-74, multiply the difference by 2.0; or
(D) if the improved ENERGY STAR score falls between 75-100, multiply the difference by 2.5.
(3) Baseline and Improved ENERGY STAR Score 12-month time periods must not:
(A) overlap;
(B) include the energy conservation device installation period; or
(C) be more than 6 calendar years apart.
(4) The Baseline ENERGY STAR Score 12-month time period must not begin earlier than August 26, 2018. Baseline and Improved ENERGY STAR Score 12-month time periods must use the same ENERGY STAR score metric reference data.
(5) If a building is not able to earn the ENERGY STAR score due to the property use type, the Director may accept the USGBC alternative compliance path for Energy Use Intensity (EUI).
(f) Building Sustainability Tax Credit authorized under Section 9-242(a) of the Tax-Property Article of the Maryland Code.
(1) The owner of an energy-efficient building seeking the Building Sustainability Tax Credit must apply for that tax credit simultaneously with the Energy Reduction Tax Credit. The amount of the Building Sustainability Tax Credit must be added to the Energy Reduction Tax Credit. The Building Sustainability Tax Credit must be equal to:
(A) 25% of the property tax owed on the building for 2 years, if the building achieves the most recent version available of LEED O+M Gold, BREEAM In-Use Excellent or an equivalent standard; or
(B) 50% of the property tax owed on the building for 2 years, if the building achieves the most recent version available of LEED O+M Platinum, BREEAM In-Use Outstanding or an equivalent standard.
(2) To be approved for the Building Sustainability Tax Credit, an energy-efficient building must also be approved for the Energy Reduction Tax Credit.
(g) Expanded credit for buildings in Equity Emphasis Areas.
(1) The owner of an energy-efficient building located within an Equity Emphasis Area at the time of application may qualify for an expanded credit under this subsection.
(2) The owner must apply for a credit under this subsection simultaneously with an application for the Energy Reduction Tax Credit.
(3) The amount of the tax credit under this subsection must be added to the Energy Reduction Tax Credit for each year that the Energy Reduction Tax Credit is granted.
(4) The amount of the tax credit under this subsection must be equal to 10% of the annual property tax owed on the building.
(h) Total Maximum Credit. The maximum credit that an energy-efficient building may be granted in any year must not exceed 100% of the building’s annual County property tax liability.
(i) Annual limits. In any fiscal year, the Director must not award more than $5 million in total tax credits granted to all buildings under this Section.
(j) Reapplications.
(1) The owner of an energy-efficient building awarded a tax credit under this Section may reapply twice after the initial 2-year credit cycle. The maximum
number of applications a building owner may submit is 3, consisting of 1 initial application and 2 reapplications.
(2) For any reapplications, the building owner must submit a new Baseline ENERGY STAR Score for the building and describe the improvements performed to achieve the energy reduction. The Baseline ENERGY STAR Score for a reapplication may not be older than the 12-month time period used for the Improved ENERGY STAR Score for the previously approved tax credit. If an owner received a Building Sustainability Tax Credit based upon certification as LEED O+M Gold, BREEAM In-Use Excellent or an equivalent standard, the building must achieve a higher certification, such as LEED O+M Platinum, BREEAM In-Use Outstanding or an equivalent standard, upon reapplication.
(k) Credit Review.
(1) On or before October 1 of each year, the Director of Finance must prepare a report on the status of the Energy Reduction Tax Credit and Building Sustainability Tax Credit.
(2) Every 3 years, the County Executive must submit a report to the County Council reviewing the effectiveness of the Energy Reduction Tax Credit and Building Sustainability Tax Credit and make recommendations on any credit alterations.
(l) Regulations. The County Executive may issue regulations under method (2) to administer the Energy Reduction Tax Credit and the Building Sustainability Tax Credit. (2020 L.M.C., ch. 28, § 1; 2021 L.M.C., ch. 26
, § 1; 2021 L.M.C., ch. 28, §1; 2023 L.M.C., ch. 21
, § 1.)
(a) Intent. The intent of this Section is to:
(1) encourage building owners to increase the energy performance of newly constructed buildings beyond current Building and Zoning Code requirements at time of application;
(2) incentivize building owners to reduce the energy and climate impacts of newly constructed buildings, as the built environment generates more than half of the County’s measured community-wide greenhouse gas emissions;
(3) advance the County’s aggressive climate goals of an 80 percent reduction in greenhouse gas emissions by 2027 and zero emissions by 2035;
(4) institute regular review of the tax credits outlined in this Section to ensure that they are meeting the goals under paragraphs (1) through (3); and
(5) implement a tax credit under Section 9-242(a) of the Tax-Property Article of the Maryland Code, as amended.
(b) Applicability. The credit authorized by this Section applies to any tax year beginning January 1, 2022.
(c) Definitions. In this Section the following words have the meanings indicated:
BRE Global means the Building Research Establishment Global.
BREEAM means the Building Research Establishment Environmental Assessment Method rating system administered by BRE Global.
Building Code requirement means any code, standard, zoning ordinance, or other requirement related to commercial and multi-family building construction and permitting processes that applies to a newly constructed energy-efficient building.
Equity Emphasis Area means an area identified as an equity emphasis area by National Capital Region Transportation Planning Board.
New Building Sustainability Tax Credit is the property tax credit received for earned building certifications described in this Section.
Director means the Director of the Department of Finance or the Director’s designee.
Newly constructed energy-efficient building means:
(A) An unoccupied non-residential or multi-family residential “core and shell” building, of at least 10,000 square feet in gross floor area, with full mechanical systems, electrical distribution infrastructure, and a weather-sealed thermal envelope that has achieved substantial completion and received a Certificate of Occupancy from the Department of Permitting Services within the past year;
(B) A newly constructed non-residential or multi-family building, of at least 10,000 square feet in gross floor area, that has achieved substantial completion and received a Certificate of Occupancy from the Department of Permitting Services within the past year; or
(C) A non-residential or multi-family building, of at least 10,000 square feet in gross floor area, that has undergone a major renovation that warrants bringing the entire building up to current Building Code standards and has received final inspection and approval from the Department of Permitting Services.
New Building Energy Reduction Tax Credit is the property tax credit received for energy performance improvements described in this Section.
LBC or Living Building Certification means the Living Building Certification administered by the International Living Future Institute.
LEED means the Leadership in Energy and Environmental Design rating system administered by the USGBC. In this Section, LEED building certification includes all eligible rating systems for newly constructed non-single-family-residential buildings.
NGBS means the National Green Building Standard rating system administered by Home Innovation Research Labs.
PassiveHouse means the PassiveHouse standard administered by PHIUS.
PHIUS means the PassiveHouse Institute US.
Property tax means the general County property tax and all special service area taxes.
USGBC means the United States Green Building Council.
(d) Credit. The Director must allow a tax credit each eligible year against the property tax imposed on a newly constructed energy-efficient building under this Section.
(e) Application.
(1) An application by the owner of a newly constructed energy-efficient building for a tax credit must be in the form prescribed by the Director and must include:
(A) a certification from the Department of Permitting Services within the past year indicating the percentage performance above current Building Code requirements at time of application demonstrated by the newly constructed energy-efficient building for the New Building Energy Reduction Tax Credit; and
(B) if the New Building Sustainability Tax Credit is sought after receiving the New Building Energy Reduction Tax Credit, verified documentation by the newly constructed energy-efficient building demonstrating qualification for the New Building Sustainability Tax Credit within two years after obtaining a use and occupancy permit.
(2) A building owner that has received either a New Building Energy Reduction Tax Credit or a New Building Sustainability Tax Credit may not reapply for either credit for the same newly constructed building in any later tax year.
(f) New Building Energy Reduction Tax Credit.
(1) A newly constructed energy-efficient building may receive a New Building Energy Reduction Tax Credit for achieving energy use reductions as outlined in this subsection and, if that credit is granted, may receive an additional New Building Sustainability Tax Credit as described in subsection (g).
(2) To be eligible for the New Building Energy Reduction Tax Credit, a newly constructed energy-efficient building owned by the applicant must achieve a minimum 10 percent increase in energy performance above the current applicable building code requirements at time of application using an energy modeling software approved by the Department of Permitting Services.
(3) For the New Building Energy Reduction Tax Credit, the percentage of the annual County property tax credit awarded for 4 years is calculated by rounding a newly constructed energy-efficient building’s performance above building code requirements to the nearest whole number and multiplying it by the multiplier below:
(A) if the building’s performance above Code is between 10 and 20 percent, multiply the building performance percentage figure by 0.5;
(B) if the building’s performance above Code is between 21 and 30 percent, multiply the building performance percentage figure by 1.0;
(C) if the building’s performance above Code is between 31 and 40 percent, multiply the building performance percentage figure by 1.5; or
(D) if the building’s performance above Code is above 40 percent, multiply the building performance percentage figure by 2.0.
(g) New Building Sustainability Tax Credit. The owner of a newly constructed energy-efficient building seeking the New Building Sustainability Tax Credit must apply for that tax credit after receiving the New Building Energy Reduction Tax Credit.
(1) The amount of the New Building Sustainability Tax Credit must be equal to:
(A) 25% of the property tax owed on the building for 4 years if the building achieves the most recent version available of LEED Gold, NGBS Gold, PHIUS+/PassiveHouse, BREEAM-NC Excellent or an equivalent standard;
(B) 75% of the property tax owed on the building for 4 years if the building achieves the most recent version available of LBC Petal Certification, LEED Platinum, NGBS Emerald, BREEAM-NC Outstanding or an equivalent standard; or
(C) 75% of the property tax owed on the building for 5 years if the building achieves the most recent version available of Living Building Certification.
(2) To be approved for the New Building Sustainability Tax Credit, an energy-efficient building must first be approved for the New Building Energy Reduction Tax Credit.
(h) Expanded credit for buildings in Equity Emphasis Areas.
(1) The owner of a newly constructed energy-efficient building located within an Equity Emphasis Area at the time of application may qualify for an expanded credit under this subsection.
(2) The owner must apply for a credit under this subsection simultaneously with an application for the New Building Energy Reduction Tax Credit.
(3) The amount of the tax credit under this subsection must be added to the New Building Energy Reduction Tax Credit for each year that the New Building Energy Reduction Tax Credit is granted.
(4) The amount of the tax credit under this subsection must be equal to 10% of the annual property tax owed on the building.
(i) Total Maximum Credit. The maximum credit under this Section that an energy-efficient building may be granted in any fiscal year must not exceed 100% of the building’s annual property tax liability.
(j) Credit Review.
(1) By October 1 of each year, the Director must prepare a report on the status of the New Building Energy Reduction Tax Credit and the New Building Sustainability Tax Credit.
(2) Every 3 years, the County Executive must submit a report to the Council reviewing the effectiveness of the New Building Energy Reduction Tax Credit and the New Building Sustainability Tax Credit and making recommendations on any credit alterations.
(k) Regulations. The County Executive may issue regulations under method (2) to administer the New Building Energy Reduction Tax Credit and the New Building Sustainability Tax Credit. (2020 L.M.C., ch. 28, § 1; 2021 L.M.C., ch. 26, § 1; 2021 L.M.C., ch. 28, §1.)
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