Anne Arundel County – Solar and Geothermal Equipment Property Tax Credits
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
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 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 – 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 a property tax credit 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.
Name: Anne Arundel County Code ยง 4-2-312
Effective Date: 01/01/2007
Name: Anne Arundel County Code ยง 4-2-309
Effective Date: 06/10/2010
Name: Council Bill 84-12
Customer Service – Anne Arundel County
Anne Arundel County
44 Calvert Street, Rm. 110
Annapolis, MD 21401
Phone: (410) 222-1144