(a) Definitions. In this Section, the following words have the meanings indicated:
Director means the Director of the Department of Finance or the Director’s designee.
Eligible cost means the cost of buying or installing a solar or geothermal energy device or energy conservation device, including any part, component, or accessory necessary to operate the device, that is installed within 12 months before a property owner submits an application to the Department of Finance under subsection (f).
Energy conservation device means a device that:
(1) reduces the demands for conventional fuels or efficiency of these fuels, including:
(A) caulking and weatherstripping doors and windows;
(B) furnace efficiency modifications, including:
(i) replacing a burner, furnace, heat pump, or boiler if the replacement substantially increases the energy efficiency of the heating system;
(ii) a device to modify flue openings that increases the energy efficiency of the heating system; and
(iii) any electrical or mechanical furnace ignition system which replaces a standing gas pilot light;
(C) a programmable thermostat;
(D) ceiling, attic, wall, or floor insulation;
(E) water heater insulation;
(F) storm windows or doors, multiglazed windows or doors, and heat- absorbed or heat-reflective glazed window or door materials;
(G) any device which controls demand of appliances and aids load management; and
(H) any other conservation device, renewable energy technology, and specific home improvement that the Director finds necessary to assure that energy conservation measures are effective; and
(2) meets safety and performance standards set by a nationally recognized testing laboratory for that kind of device.
Energy conservation device does not include a standard household appliance, such as a washing machine or clothes dryer.
Geothermal energy device means a device that:
(1) uses geothermal energy to heat or cool a structure, to provide hot water for use in the structure, or to generate electricity to be used in the structure; and
(2) meets safety and performance standards set by a nationally recognized testing laboratory for that kind of device.
Solar energy device means a device that:
(1) uses solar energy to heat or cool a structure, to provide hot water for use in the structure, or to generate electricity to be used in the structure; and
(2) meets safety and performance standards set by a nationally recognized testing laboratory for that kind of device.
Tax-Property Article means the Tax-Property Article of the Maryland Code.
(b) Credit. As authorized by § 9-203 of the Tax-Property Article, an individual who owns and occupies a single-family home that uses a solar or geothermal energy device or an energy conservation device may receive a credit against the County property tax. An individual must only receive a credit for a device that the individual owns.
(c) Amount of Credit.
(1) The credit allowed under this Section for a geothermal or solar energy device is the lower of:
(A) 50% of the eligible costs; or
(B) $5,000 for a heating or cooling system, $1,500 for a hot water supply system, or $5,000 for a device that generates electricity.
(2) In any fiscal year, a person must not receive a credit for more than 1 geothermal or solar energy device per property.
(3) In any fiscal year, the credit allowed under this Section for eligible costs for all energy conservation devices must not exceed $250 per property.
(d) Annual aggregate limit.
(1) Unless a larger amount is approved in the annual operating budget or a Council resolution, during any fiscal year, the total credits granted under this Section must not exceed:
(A) $400,000 for solar and geothermal energy devices; and
(B) $100,000 for energy conservation devices.
(2) Credits must be granted in the order in which the Department of Finance receives complete applications under subsection (f).
(3) A complete application that, if granted, would cause the limit set in paragraph (1) of this subsection 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.
(e) Carry Over.
(1) The amount of credit in any tax year must not exceed the amount of the County property tax imposed on the property in that tax year.
(2) Any amount of credit not taken in the tax year in which an application is approved may be carried over for an additional two years.
(3) When a credit is carried over under this subsection, the full amount of the credit must be counted towards the annual aggregate limit established in subsection (d) in the year in which an application is approved.
(f) Application.
(1) A property owner must submit an application to the Director on or before the date that the Director sets.
(2) An application must:
(A) be on the form that the Director requires;
(B) demonstrate that the taxpayer is entitled to the credit; and
(C) include a certification from the Department of Permitting Services, indicating that the device for which the credit is sought:
(i) is a solar or geothermal energy device; and
(ii) has been properly installed.
(3) The Department of Permitting Services must accept a certification by another government agency, including a municipality, that the device has been properly installed.
(g) Applicability. The credit authorized by this Section applies to any tax year beginning after June 30, 2008. However, the Director must not grant a credit for a solar or geothermal energy device for any application received after November 8, 2011, unless an individual:
(1) enters into a contract for eligible costs on or before November 8, 2011; and
(2) applies for the credit on or before November 8, 2012. (2008 L.M.C., ch. 10, § 1; 2009 L.M.C., ch. 4, § 1; 2009 L.M.C., ch. 30, § 1; 2010 L.M.C., ch. 49, § 1; 2011 L.M.C., ch. 20, § 1; 2016 L.M.C., ch. 7, § 2.)
Editor’s note—2009 L.M.C., ch. 4, § 2, states: Applicability. The property tax credit limit under Section 52-18R, as amended by Section 1 of this Act, for a device that generates electricity applies to a device for which an application for a credit was filed on or after January 27, 2009.