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§ 10-719. Energy storage systems tax credit

West's Annotated Code of MarylandTax-GeneralEffective: July 1, 2022

West's Annotated Code of Maryland
Tax-General (Refs & Annos)
Title 10. Income Tax (Refs & Annos)
Subtitle 7. Income Tax Credits (Refs & Annos)
Effective: July 1, 2022
MD Code, Tax - General, § 10-719
§ 10-719. Energy storage systems tax credit
Currentness
Definitions
(a)(1) In this section the following words have the meanings indicated.
(2) “Administration” means the Maryland Energy Administration.
(3) “Energy storage system” means a system used to store electrical energy, or mechanical, chemical, or thermal energy that was once electrical energy, for use as electrical energy at a later date or in a process that offsets electricity use at peak times.
(4) “Taxpayer” means:
(i) the owner of a residential property who purchases and installs an energy storage system on the residential property;
(ii) the owner of a commercial property who purchases and installs an energy storage system on the commercial property; or
(iii) an individual or a corporation that owns or pays for the installation of an energy storage system that supplies electrical energy intended for use on the residential or commercial property on which the energy storage system is installed.
Credit allowed
(b) Subject to the limitations of this section, a taxpayer that receives a tax credit certificate may claim a credit against the State income tax for the total installed costs of an energy storage system installed on residential or commercial property during the taxable year.
Amount of tax credit
(c) On application by a taxpayer, the Administration shall issue a tax credit certificate that may not exceed the lesser of:
(1)(i) for an energy storage system installed on a residential property, $5,000; or
(ii) for an energy storage system installed on a commercial property, $150,000; or
(2) 30% of the total installed costs of the energy storage system.
Limitation on aggregate amount of tax credit certificates
(d) The Administration may not issue an aggregate amount of tax credit certificates exceeding $750,000 for a taxable year.
Approval of applications
(e) The Administration shall approve all applications that qualify for a tax credit certificate:
(1) on a first-come, first-served basis; and
(2) in a timely manner.
Excess credit
(f)(1) The total amount of the credit allowed under this section for any taxable year may not exceed the State income tax for that taxable year, calculated before the application of the credits under this section and §§ 10-701 and 10-701.1 of this subtitle, but after the application of other credits allowable under this subtitle.
(2) The unused amount of credit for any taxable year may not be carried over to any other taxable year.
Credit unavailable for systems installed before January 1, 2018, or after December 31, 2024
(g) The credit under this section may not be claimed for an energy storage system installed before January 1, 2018, or after December 31, 2024.
Annual reports
(h) On or before January 31 each taxable year, the Administration shall report to the Comptroller on the tax credit certificates issued under this section during the prior taxable year.
Regulations
(i) The Administration, in consultation with the Comptroller, shall adopt regulations to carry out this section.

Credits

Added by Acts 2017, c. 389, § 1, eff. July 1, 2017. Amended by Acts 2020, c. 636, § 1, eff. July 1, 2020; Acts 2022, c. 246, § 1, eff. July 1, 2022.
MD Code, Tax - General, § 10-719, MD TAX GENERAL § 10-719
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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