Montgomery County Solar Energy Tax Incentives

Property Tax Credit – Renewable Energy (Renewable Energy Devices)


Description

An owner of an owner-occupied residential property who installs a solar or geothermal device may receive a real property tax credit against the County tax on the property. The credit is limited to the lesser of:

  1. 50% of the eligible costs of the system, or
  2. $5,000 for a device to heat or cool a structure; $5,000 for a device to generate electricity in a structure; $1,500 for a device to provide hot water in a structure.


Any Geothermal or Solar energy device must meet safety and performance standards set by a nationally recognized testing laboratory for that kind of device, in order to receive the tax credit.

In order to receive the tax credit, a taxpayer must submit a completed application to the Montgomery County Department of Finance. The application must:

  1. Demonstrate that the taxpayer is entitled to the tax credit
  2. Include a certification from the Montgomery County Department of Permitting Services, indicating that the device is a qualifying solar or geothermal device, and has been properly installed. The Department of Permitting Services must accept a certification by another government agency, including a municipality, that certifies the device has been properly installed.


During any fiscal year, the total credits granted under this Section, for geothermal or solar devices, must not exceed $250,000. Credits must be granted in the order in which the Department of Finance receives completed applications. Any completed application received after the $250,000 limit has been reached in the current fiscal year, must be granted in the next fiscal year or years based on the order in which the Department of Finance received the application.

The amount of credit issued in any tax year must not exceed the amount of County property tax levied on the property in that tax year. Any approved credit amount not issued in that tax year may be carried over for an additional two years.