Anne Arundel County Geothermal Property Tax Credits

Anne Arundel County Geothermal Property Tax Credits furthermore help incentivize the adoption and installation of the most energy efficient heating and cooling systems available in the world. Anne Arundel County Geothermal Property Tax Credits will reduce your property tax liability to zero ($0) if your property tax liability is ≤$2,500.00.

If you are a recipient of the Anne Arundel County, Maryland Homestead Property Tax Credit, your county tax liabilities have already been reduced; however, this credit may affect other county tax credits such as the Anne Arundel County Geothermal Property Tax Credit.

Anne Arundel County’s Geothermal Property Tax Credits are not applicable to Maryland State Property Taxes, Taxes from the City of Annapolis, service charges for Solid Waste and, the Waterway Protection and Restoration Fund (WPRF) fee.

Latest Code:

§ 4-2-309. Geothermal energy.

(a) Definition. In this section, “geothermal energy device” means a heating or
cooling device that is installed using ground loop technology.
(b) Creation. There is a one-time tax credit from County real property taxes levied
on residential dwellings that use geothermal energy devices installed on or after January 1, 2009.
Anne Arundel County Code, 2005
(c) Qualifying devices. Any device that uses geothermal energy to heat or cool the dwelling shall be eligible for the credit.
(d) Time for filing the Anne Arundel County Geothermal Property Tax Credit Application. Application for the tax credit created by this section shall be filed on or before June 1 immediately before the taxable year for which the tax credit is sought. If the application is filed after June 1, the credit shall be disallowed that year but shall be treated as an application for a tax credit for the next succeeding taxable year. An application may be filed only once for the duration of the tax credit.
(e) Credit against taxes levied on dwellings. The tax credit shall be credited from the taxes levied on the dwelling and may not be credited from the taxes levied on the land. The total tax credit allowed under this section shall be the lesser of:
(1) fifty percent (50%) of the cost of materials and installation or construction of the geothermal energy device, less the amount of federal and state grants or State geothermal energy tax credits; or
(2) $2,500.
(f) Form of application. An application for the tax credit shall be submitted to the Controller on forms that the Office of Finance requires; be accompanied by documented receipts of the purchase of materials or supplies and the actual installation cost; and be under oath, containing a declaration preceding the signature of the applicant to the effect that it is made under the penalties of perjury provided for by the Tax-Property Article, § 1-201, of the State Code.

(Bill No. 17-10; Bill No. 48-10)

Anne Arundel County Geothermal Tax Credit Application

Previously Published on Anne Arundel County’s Website

Anne Arundel County offers a one-time credit from county property taxes on residential dwellings that use solar and geothermal energy equipment for heating and cooling, and solar energy equipment for water heating and electricity generation. Photovoltaic (PV) systems and geothermal systems were initially not eligible for the tax credit, but PV systems were added by legislation enacted in January 2009 (County Bill 81-08) and geothermal heating and cooling systems were added in April 2010 (County Bill 17-10). Solar energy devices must be installed on or after January 1, 2007, in order to be eligible for the tax credit. Geothermal equipment must be installed on or after January 1, 2009, in order to be eligible for the tax credit. Expenditures for solar pool heating are not eligible for the tax credit.

The one-time tax credit is calculated as the lesser of the following:

  • 50% of the cost of materials and installation of the solar energy equipment, less the amount of federal and state grants and state solar energy tax credits; or
  • $2,500

It is important to note that the tax credit is credited from the taxes on the dwelling itself and not those levied on the land. Applications for Anne Arundel County Geothermal Tax Credits must be filed on or before June 1 of the year immediately preceding the year for which the credit is sought. In 2012 new legislation (Council Bill 84-12) removed the former June 1 2012 application deadline for PV systems. Please contact the Anne Arundel County Office of Finance for tax credit applications and further information.

Anne Arundel County Geothermal Tax Credits

High-Performance Dwelling Property Tax Credit

The state of Maryland permits local governments (MD Code: Property Tax § 9-242) to offer property tax credits for high-performance buildings if they choose to do so. In October 2010 Anne Arundel exercised this option by enacting legislation (County Bill 78-10) providing Anne Arundel County geothermal tax credits for high-performance dwellings built on or after July 1, 2010, that meet or exceed USGBC LEED Silver standards. The credit was amended in 2012 (County Bill 03-12) to add the National Green Building Standard (NGBS) as an eligible green building certification system for the tax credit. The tax credit is available for five years and is calculated as a percentage of the county property taxes owed on the dwelling (but not the land). The incentive amount and maximum incentive vary according to the performance level of the building as determined under the applicable rating system, as follows:

  • LEED or NGBS Silver: 40% of taxes owned up to $1,000
  • LEED or NGBS Gold: 60% of taxes owed up to $2,000
  • LEED Platinum or NGBS Emerald: 80% of taxes owed up to $3,000

Those wishing to claim the tax credit must provide documentation proving that the dwelling meets the standard, which must be reviewed and approved by a professional certified in the applicable building standard that is employed or engaged by the county. The applicant must also certify that the dwelling and systems will be regularly maintained to comply with the applicable standard. Properties may be inspected to verify compliance with the tax credit rules.

Authorities

Name: Anne Arundel County Code § 4-2-312
Effective Date: 01/01/2007
Name: Anne Arundel County Code § 4-2-309
Effective Date: 06/10/2010
Name: Council Bill 84-12

Contact

Customer Service – Anne Arundel County
Organization:
Anne Arundel County
Address:
44 Calvert Street, Rm. 110
Annapolis, MD 21401
Phone: (410) 222-1144
E-Mail:
[email protected]