Howard County Solar Energy Tax Incentives

In accordance with Maryland Property Tax Code § 9-203, Howard County allows a property tax credit for certain renewable energy devices. Real property owners may receive a property tax credit against the county property tax imposed on a residential structure that uses a solar or geothermal energy device. The amount of the tax credit is 50% of the eligible costs up to $5,000 for a photovoltaic (PV) or heating system (geothermal or solar), and $1,500 for a hot water supply system. All equipment must meet safety and performance standards set by a nationally recognized laboratory for that kind of device.

The amount of credit applied in a tax year may not exceed the amount of property tax imposed for that year, but any amount not taken may be carried over for an additional two years. During a fiscal year, the total amount of all tax credits granted in the county is limited to $250,000. Eligible applicants should submit their applications on or before April 1 prior to the taxable year for which the credit is sought. Work must be completed in the 12 months prior to an application in order to be eligible for the tax credit. The program webpage listed at the top of this page contains the application for the credit.

This local option tax incentive is unique because it is applied in the form of a credit -- not an exemption or exclusion, as in the case of most other property tax programs.