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§ 7-237. Machinery or equipment to generate electricity; property tax exemption

West's Annotated Code of MarylandTax-PropertyEffective: July 1, 2023

West's Annotated Code of Maryland
Tax-Property
Title 7. Property Tax Exemptions
Subtitle 2. General Property Tax Exemptions
Effective: July 1, 2023
MD Code, Tax - Property, § 7-237
§ 7-237. Machinery or equipment to generate electricity; property tax exemption
In general
(a) Except as provided in subsection (b) of this section, personal property is exempt from property tax if the property is machinery or equipment used to generate:
(1) electricity or steam for sale; or
(2) hot or chilled water for sale that is used to heat or cool a building.
County or municipal corporation property tax applicability
(b) Subject to § 7-514 of this title, and except as provided in subsection (c) of this section, personal property that is machinery or equipment described in subsection (a) of this section is subject to county or municipal corporation property tax on:
(1) 75% of its value for the taxable year beginning July 1, 2000; and
(2) 50% of its value for the taxable year beginning July 1, 2001 and each subsequent taxable year.
Community solar energy generating systems
(c)(1)(i) In this subsection the following words have the meanings indicated.
(ii) “Agrivoltaics” means the simultaneous use of areas of land for both solar power generation and agriculture.
(iii) “Brownfield” means:
1. a former industrial or commercial site identified by federal or State laws or regulations as contaminated or polluted; or
2. a closed municipal or rubble landfill regulated under a refuse disposal permit by the Department of the Environment.
(iv) “Community solar energy generating system” has the meaning stated in § 7-306.2 of the Public Utilities Article.
(v) “Electric company” has the meaning stated in § 1-101 of the Public Utilities Article.
(2) This subsection applies through the life cycle of a community solar energy generating system that:
(i) is placed in service after June 30, 2022; and
(ii) has been approved on or before December 31, 2025, by the Public Service Commission under § 7-306.2 of the Public Utilities Article.
(3) Personal property is exempt from county or municipal corporation property tax if the property is machinery or equipment that is part of a community solar energy generating system that:
(i) has a generating capacity that does not exceed 2 megawatts as measured by the alternating current rating of the system's inverter;
(ii) provides at least 50% of the energy it produces to low- or moderate-income customers at a cost that is at least 20% less than the amount charged by the electric company that serves the area where the community solar energy generating system is located; and
(iii) 1. is used for agrivoltaics; or
2. is installed on a rooftop, brownfield, parking facility canopy, landfill, or clean fill.
(4) On or before October 1 each year, the Department shall report to the Senate Budget and Taxation Committee and the House Ways and Means Committee, in accordance with § 2-1257 of the State Government Article, on the number and location of projects that, in the immediately preceding taxable year, have received the exemption under this subsection.

Credits

Added by Acts 1999, c. 5, § 1, eff. Jan. 1, 2000. Amended by Acts 1999, c. 6, § 1, eff. Jan. 1, 2000; Acts 2000, c. 526, § 1, eff. Oct. 1, 2000; Acts 2007, 1st Sp. Sess., c. 2, § 4, eff. Jan. 1, 2008; Acts 2018, c. 69, § 1, eff. April 10, 2018; Acts 2022, c. 38, § 4, eff. June 1, 2022; Acts 2022, c. 415, § 1, eff. June 1, 2022; Acts 2022, c. 658, § 1, eff. June 1, 2022; Acts 2022, c. 659, § 1, eff. June 1, 2022; Acts 2023, c. 652, § 1, eff. July 1, 2023.
MD Code, Tax - Property, § 7-237, MD TAX PROPERTY § 7-237
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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