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Howard County Geothermal Property Tax Credit

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Energy Conservation Credits 

For Homeowners:

Energy Device Conservation Credit

The Energy Device Conservation Credit was designed to provide a tax credit for homeowners installing new heating, hot water or electric generation systems using alternative energy source, such as solar or geothermal. Applications are due by April 1 each year to receive a credit for the following July 1. Work must be completed within the 12 month period prior to the application. The County will only grant $250,000 in such credits each year. Credits will be granted in the order received and if the limit is reached in any year, applications will be carried over to the following year in the order in which they were received. 

Notice – CB 21-2011 was passed by the County Council on May 25, 2011 and enacted on May 26, 2011, effective July 26, 2011. This legislation is intended to phase-out this program. The annual limit of credits was changed from $250,000 to $500,000. This will enable those on the wait-list to receive their credit earlier than anticipated, but the County will only take applications for new credits (after May 25, 2011) under the following conditions: 

  1. The contract for the work done to qualify for the credit must have been executed on or before May 25, 2011.  
  2. All applications must be received by the County on or before April 1, 2012. 
  3. Installation for the above applications must be completed before the applications are submitted 

For more information call 410-313-3196. 

Click here to download Energy Conservation Devices Tax Credit. 

For Businesses:

High Performance Building Credit

High Performance Buildings are those that receive at least a Silver rating according to the U.S. Green Building Council's LEED (Leadership in Energy and Environmental Design) rating system. Tax Credits will be granted against the County Tax imposed on the building as follows:

Core and Shell or New Construction (for five years)

 

LEED Silver Certification

LEED Gold Certification
LEED Platinum Certification

  25%
50%
75%

Existing Building (for three years)

  LEED Silver Certification
LEED Gold Certification
LEED Platinum Certification
  10%
25%
50%

For more information on the credit call 410-313-3196.

Click here to download High Performance Building Tax Credit 

Green Building

  LEED Certification
LEED Silver Certification
LEED Gold Certification
LEED Platinum Certification
    14%
16%
18%
20%

Those buildings that do not meet the criteria for the High Performance Building Credit, may be able to receive a credit under our Green Building Tax Credit program. This credit is a percentage of the amount spent to install an energy conservation device in a LEED certified building for a period of three years. The credit may not exceed the amount of the County taxes owed on the building.

For more information, call 410-313-4075.

Sec. 20.128A. Qualifying energy conservation devices.

Howard County Maryland

(a) Definitions.

(1) In this section, the following terms have the meanings indicated.

(2) Solar energy device means an energy conserving device that:

(i) Uses solar energy to heat or cool a structure or to provide hot water for use in the structure; and

(ii) Meets national safety and performance standards set by a nationally recognized testing laboratory for that kind of device.

(3) Geothermal energy device means an energy conserving device that:

(i) Uses geothermal energy to heat or cool a structure or to provide hot water for use in the structure; and

(ii) Meets national safety and performance standards set by a nationally recognized testing laboratory for that kind of device.

(b) Credit Authorized. In accordance with section 9-203 of the tax-property article of the Annotated Code of Maryland and the provisions of this section, the owner of real property may receive a property tax credit against the county property tax imposed on a residential structure that utilizes a solar energy device or geothermal energy device.

(c) Amount of Credit. The tax credit allowed under this section is the lesser of:

(1) 50% of the eligible costs; or

(2) $5,000 for a heating system or $1,500 for a hot water supply system.

(d) Eligible Costs. Eligible costs are those that are incurred:

(1) Within the 12 months before the initial application for the credit; and

(2) For the solar energy device or geothermal energy device, including any part, component, or accessory equipment necessary to operate the device, and reasonable costs associated with installing the device.

(e) Annual Limit on Amount of Credits Granted.

(1) During a fiscal year, the total of all tax credits granted under this section shall not exceed $250,000.

(2) Credits shall be granted in the order in which the department of finance recieves the complete applications under subsection (f) of this section.

(3) A complete application that, if granted, would cause the limit set forth in paragraph (1) of this subsection to be exceeded, shall be granted in the next fiscal year or years and in the order received.

(f) Application of the Credit.

(1) The amount of the credit applied in a tax year may not exceed the amount of the county property tax imposed on the property in that tax year.

(2) Any amount of the credit not taken in the tax year in which the application is granted may be carried over for an additional two years.

(3) When a tax credit is carried over under this subsection, the full amount of the tax credit shall be deducted from the total annual limit set forth in subsection (e) of this section in the year in which the application is granted.

(g) Application for the Credit.

(1) An applicant for a tax credit under this section shall submit an application to the Director of Finance on or before April 1 prior to the taxable year for which the credit is sought.

(2) An application shall:

(i) Be on the form that the director requires;

(ii) Demonstrate that the taxpayer is entitled to the credit; and

(iii) Include a certification from the department of inspections, licenses and permits stating that the device for which the credit is sought:

1. Is a solar energy device or a geothermal energy device; and

2. Has been properly installed.

(h) Effective Date. The credit authorized by this section applies to tax years beginning after June 30, 2007.

(Ord. No. 69, 2006, § 1)

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