Loading...
(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.)
(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.
(a) In this section “business incubator” has the meaning in the State law which authorizes this property tax credit.
(b) The Director of Finance must allow a tax credit, as authorized by State law, to a taxpayer against all County property tax and special area tax imposed on property that is used as a business incubator if the State, the County, or an agency or instrumentality of the State or County:
(1) owns, controls, or leases the space that is used as a business incubator; or
(2) provides at least 50% of the total funding received by the business incubator from all sources, not including rents received from incubator tenant firms.
(c) The Department of Finance must administer this credit.
(d) The taxpayer must apply annually for the tax credit by the first day of March before the tax year when the tax credit would be allowed. An application must be filed on forms that the Department prescribes. The applicant must submit any supporting document, information, or certification required by the Department.
(e) Any taxpayer aggrieved by a decision of the Director to deny a credit under this Section may appeal that decision to the Maryland Tax Court. Each appeal must be filed within 30 days after the taxpayer receives written notice of the decision from the Director.
(f) The County Executive may adopt regulations under method (2) to administer this Section.
(g) The County Executive must report annually to the County Council on the use of this tax credit.
(h) (1) A person must not knowingly file a false or fraudulent application to obtain a tax credit under this Section. A violation of this subsection is a class A violation.
(2) In addition to the penalties provided under paragraph (1), a person who violates this subsection must pay the County any taxes, together with interest and penalties, offset by the credit, any other penalty due, and the County’s fees and costs in any action to enforce this subsection. (2010 L.M.C., ch. 36, § 1; 2016 L.M.C., ch. 7, § 2.)
Editor’s note—2010 L.M.C., ch. 36, § 2, states, in part: County Code Section 52-18S, enacted by Section 1 of this Act, applies to any tax year that begins on or after July 1, 2010.
(a) Definitions. In this Section, the following terms have the meaning indicated.
Department means the Department of Permitting Services.
Director means the Director of the Department or the Director’s designee.
Eligible costs means costs that are:
(1) incurred within 12 months before the property owner submits an application to the Department for the credit;
(2) for a feature authorized under this Section, including reasonable costs to install the feature;
(3) paid by the applicant and not, or will not be, reimbursed by any entity; and
(4) in excess of $500.
Feature means a permanent modification to a residence that results in:
(1) a no-step front door entrance with a threshold that does not exceed ½ inch in depth with tapered advance and return surfaces or, if a no-step front entrance is not feasible, a no-step entrance to another part of the residence that provides access to the main living space of the residence;
(2) an installed ramp creating a no-step entrance;
(3) an interior doorway that provides a 32-inch wide or wider clearing opening;
(4) an exterior doorway that provides a 32-inch wide or wider clear opening, but only if accompanied by exterior lighting that is either controlled from inside the residence, automatically controlled, or continuously on;
(5) walls around a toilet, tub, or shower reinforced to allow for the proper installation of grab bars with grab bars installed in accordance with the Americans with Disabilities Act Standards for Accessible Design;
(6) maneuvering space of at least 30 inches by 48 inches in a bathroom or kitchen so that a person using a mobility aid may enter the room, open and close the door, and operate each fixture or appliance;
(7) an exterior or interior elevator or lift or stair glide unit;
(8) an accessibility-enhanced bathroom, including a walk-in or roll-in shower or tub; or
(9) an alarm, appliance, and control structurally integrated into the unit designed to assist an individual with a sensory disability.
(b) Credit established. In accordance with Section 9-250 of the Tax-Property Article of the Maryland Code, the owner of real property may receive a property tax credit against the County property tax for a feature that is installed on an existing residence that is the owner’s principal residence when the feature is installed.
(c) Credits.
(1) The tax credit allowed under this Section is the lesser of:
(A) 50% of the eligible costs; or
(B) $2,500 less any subsidy received from a governmental, quasi-governmental, or non-profit entity for the feature.
(2) Any credit that is received which exceeds the annual tax liability of the property may be carried over to the next tax year.
(3) The credit runs with the property upon the transfer of title, and the balance of any credit must be applied to the tax bill of the subsequent owner of the property.
(d) Annual Limit on Amount of Credits Granted.
(1) During any fiscal year, the total of all tax credits granted under this Section must not exceed $100,000.
(2) Credits must be granted in the order in which the Department certifies the amount of the credit under subsection (e)(3).
(3) A certification of a credit that would cause the limit in subsection (d)(1) to be exceeded must be granted in the next tax year or years, subject to subsections (c) and (d)(1).
(e) Application for the Credit.
(1) To receive the credit, a property owner must submit an application to the Department:
(A) in the format the Department requires;
(B) that includes a copy of the building permit to install the feature;
(C) that includes any document that the Department requires; and
(D) on or before the date the Department sets.
(2) The Department must only accept one application for a credit under this Section for each property during a single tax year.
(3) The Department must certify to the Department of Finance that the property is eligible for the credit and the amount of the credit.
(4) A property owner may submit an application on or after March 1, 2014 for a credit.
(f) Administration.
(1) The County Executive may adopt regulations under Method (2) to administer this Section.
(2) The Department must submit a written report to the Council by October 1 of each year for the preceding fiscal year. The report must include the following:
(A) number of applicants;
(B) number of applications approved;
(C) modification made by the applicant;
(D) other sources from which the applicant received funds or applied for assistance for the modification;
(E) efforts to advertise the credit; and
(F) any program recommendations.
(g) Publicity. The Department must publicize the credit in a way designed to inform those most likely to benefit from the credit.
(h) Effective Date. The credit authorized by this Section applies to tax years beginning on or after July 1, 2014. (2013 L.M.C., ch. 32, § 1; 2014 L.M.C., ch. 18, § 1; 2016 L.M.C., ch. 7, § 2.)
(a) Definitions. In this Section, the following terms have the meaning indicated:
Department means the Department of Permitting Services.
Director means the Director of the Department or the Director’s designee.
Eligible costs means costs that are:
(1) incurred within 12 months before the property owner submits an application to the Department for the credit;
(2) for an accessibility feature authorized under this Section, including reasonable costs to install the feature;
(3) paid by the applicant and not, or will not be, reimbursed by any entity; and
(4) in excess of $500.
Accessibility Feature means a permanent addition to a single family residence that is a requirement under a Level I or Level II Accessibility Standard.
Level I Accessibility Standard means a permanent addition to a single family residence that include at least one no-step entrance located at any entry door to the house that is connected to an accessible route to a place to visit on the entry level, a usable powder room or bathroom, and a 32-inch nominal clear width interior door as further defined and described in Executive Regulations adopted under Method 2.
Level II Accessibility Standard means permanent additions to a single family residence that provide all of the Level I Accessibility Standards plus an accessible circulation path that connects the accessible entrance to an accessible kitchen, a full bath, and at least one accessible bedroom, as further defined and described in Executive Regulations adopted under Method 2.
Single family residence means an attached or detached single family home.
(b) Credit established. As authorized by Section 9-250 of the Tax-Property Article of the Maryland Code, the owner of a single family residence located in Montgomery County may receive a property tax credit against the County real property tax for the cost of features that achieve Level I or Level II Accessibility Standards.
(c) Amount of Credit. The tax credit permitted by this Section must be as follows:
(1) For features meeting Level I Accessibility Standards, certified costs of up to $3,000 less any credit received against the Development Impact Tax for School Improvements under Section 52-58 for those features and less any funds or assistance received for the accessibility feature.
(2) For features meeting Level II Accessibility Standards, certified costs of up to $10,000 less any credit received against the Development Impact Tax for School Improvements under Section 52-58 for those features and less any funds or assistance received for the accessibility feature.
(3) The maximum amount of credit that may be applied in any one tax year is $2,000.
(4) The amount of credit that may be applied in any one tax year must not exceed the amount of County property tax imposed on the property in that year.
(5) Any credit that is granted that exceeds the limit set in subsection (c)(3) or exceeds the annual tax liability of the property may be carried over to the next tax year, subject to subsection (c)(3), until the entire amount of the credit is applied.
(6) The credit runs with the property upon transfer of title and the balance of any credit must be applied to the tax bill of the subsequent owner of the property.
(d) Annual Limit on Amount of Credits Granted.
(1) During any tax year, the total of all tax credits granted under this Section must not exceed $500,000.
(2) Credits must be granted in the order in which the Department certifies the amount of the credit under subsection (e)(3).
(3) A certification of a credit that would cause the limit in subsection (d)(1) to be exceeded must be granted in the next tax year or years subject to subsections (c)(3) and (d)(1).
(e) Application for the Credit.
(1) To receive the credit, a property owner must submit an application to the Department:
(A) in the format the Department requires;
(B) that includes a copy of the building permit to install the feature;
(C) that includes any document that the Department requires; and
(D) on or before the date set in the regulations.
(2) The Department must only accept one application for a credit under this Section for each property during a single tax year.
(3) The Department must certify to the Department of Finance that the property is eligible for the credit and the amount of the credit.
(4) A property owner may apply for a credit on or after March 1, 2014.
(f) Administration.
(1) The County Executive may adopt regulations under Method (2) to administer this Section.
(2) The Department must submit a written report to the Council by October 1 of each year for the preceding tax year. The report must include the following:
(A) number of applicants;
(B) number of applications approved;
(C) modification made by the applicant; and
(D) efforts to promote the credit.
(g) Publicity. The Department must publicize the credit in a way designed to inform those most likely to benefit from the credit.
(h) Effective Date. The credit authorized by this Section applies to tax years beginning on or after July 1, 2014. (2013 L.M.C., ch. 32, § 1; 2016 L.M.C., ch. 7, § 2.)
(a) Definitions. In this Section, the following words have the meanings indicated:
Base year means the taxable year immediately before the taxable year in which a credit under this Section is to be granted.
Base year value means the value of the property used to determine the assessment on which the property tax on real property was imposed for the base year. Base year value does not include any new real property that was first assessed in the base year.
Eligible assessment means the difference between the base year value and the actual value as determined by the Department for the applicable taxable year in which the tax credit under this Section is to be granted.
Eligible business entity means a person who operates or conducts a trade or business on qualified enterprise zone property but does not own the qualified enterprise zone property.
Qualified property means real property that:
(1) is located within the area encompassed by the Burtonsville Crossroads neighborhood Plan developed by the Montgomery County Planning Department;
(2) is zoned for commercial or commercial/residential mixed use development and is used for a commercial purpose; and
(3) is improved after the effective date of this Bill and before January 1, 2020 or another date provided in Section 9-317 of the Tax-Property Article.
Tax-Property Article means the Tax-Property Article of the Maryland Code.
(b) Credit.
(1) Credit authorized. The Director of Finance must allow a credit, as authorized by State law, to a taxpayer against all County property tax and imposed on:
(A) improvements made by an eligible business entity to qualified property; and
(B) personal property owned by an eligible business entity located on qualified property.
(2) Duration of credit. A credit under this Section is available to a qualified property for no more than 5 consecutive years beginning with the taxable year following the calendar year in which the real property initially becomes a qualified property.
(3) Amount of credit. The amount of the credit is equal to 80% of the amount of property tax imposed on the eligible assessment of the qualified property in each of the first 5 taxable years following the calendar year in which the property initially becomes a qualified property.
(4) Nonresidential portions of qualified property. The Department must allocate the eligible assessment to the nonresidential part of the qualified property at the same percentage as the square footages of the nonresidential part is to the total square footage of the building.
(5) For purposes of calculating the amount of the credit allowed under this Section, the amount of property tax imposed on the eligible assessment must be calculated without reduction for any credits allowed under the Tax-Property Article.
(c) Regulations. The County Executive may adopt regulations under Method (2) to administer this Section.
(d) False or fraudulent applications.
(1) A person must not knowingly file a false or fraudulent application to obtain a tax credit under this Section. A violation of this subsection is a Class A violation.
(2) In addition to the penalties provided under paragraph (1), a person who violates this subsection must pay the County any taxes, together with interest and penalties, offset by the credit, any other penalty due, and the County’s fees and costs in any action to enforce this subsection. (2013 L.M.C., ch. 35, § 1; 2016 L.M.C., ch. 7, § 2; 2016 L.M.C., ch. 24, § 1.)
(a) Definitions. In this Section:
Director means the Director of Finance or the Director’s designee.
Elderly or disabled tenant means a tenant who meets the income- and asset-based eligibility requirements established by regulation under subsection (f) and:
(1) is at least 65 years old;
(2) has been found permanently and totally disabled and has qualified for benefits under:
(A) the Social Security Act;
(B) the Railroad Retirement Act;
(C) any federal act for members of the United States armed forces; or
(D) any federal retirement system; or
(3) has been found permanently and totally disabled by the County health officer.
Market rent means an amount, determined by the Department of Housing and Community Affairs, equal to:
(1) the rent charged to other tenants for comparable units in the same property; or
(2) if there are no other comparable units in the same property, the rent charged for comparable units in the same market area.
Reduced rent means rent charged to an elderly or disabled tenant that is at least 15% less than market rent.
Rent reduction means the difference between the market rent and reduced rent for the dwelling.
Tax-Property Article means the Tax-Property Article of the Maryland Code.
(b) Credit. As authorized by §9-219 of the Tax-Property Article, the owner of a rental dwelling who provides reduced rent to an elderly or disabled tenant may receive a credit against the County property tax.
(c) Amount of Credit.
(1) The credit allowed under this Section is 50% of the total rent reductions provided by the owner to elderly or disabled tenants during the tax year.
(2) A credit granted to a person under this Section must not exceed the amount of County property tax paid by the person in the tax year in which the credit is granted.
(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 $250,000.
(2) Credits must be granted in the order in which the Department of Finance receives complete applications under subsection (e).
(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) 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; and
(B) demonstrate that the taxpayer is entitled to the credit.
(f) Regulations. The County Executive must adopt regulations under method (2) to administer this Section, including income- and asset-based tenant eligibility requirements. (2014 L.M.C., ch. 35, § 1; 2016 L.M.C., ch. 7, § 2.)
Editor’s note—2014 L.M.C., ch. 35, § 2, states: This Act takes effect on July 1, 2015 and is effective through the tax year ending on June 30, 2018. This Act and any regulation adopted under it is not effective for any tax year beginning on or after July 1, 2019.
Loading...