Energy Conservation Devices Tax Credit

EXTENSION OF ENERGY EFFICIENT HOME AND COMMERCIAL TAX CREDITS

The Consolidated Appropriations Act, 2021, H.R. 133, signed into law on December 27, extended the 45L energy efficient home ($2,000) tax credit, which had been scheduled to expire last year, to cover qualified new energy efficient homes sold or leased through 2021. View instructions for Form 8908: Energy Efficient Home Credit.

The same law also extended the 179D energy efficient commercial buildings federal tax deduction, which had been scheduled to expire at year-end, and was instead made permanent. Internal Revenue Code Section 45L provides eligible taxpayers the ability to attain a tax credit for new energy efficient homes that are sold or leased by that taxpayer during the tax year for use as a residence. 179D primarily enables building owners to claim a tax deduction for installing qualifying systems and buildings.

CONSERVATION DEVICES

The Energy Conservation Devices Tax Credit, as defined in Section 11-2-203.3 of the Baltimore County Code, offers assistance to single and multi-family residential property owners who utilize solar or geothermal devices that meet national safety and performance standards to heat, cool and supply electricity and to provide hot water for use in the structure.

This credit applies only to the Baltimore County Real Property Tax obligation. Any other charges listed on your bill are not included as part of the calculation.

Note: The credit does not transfer with the property and a change of ownership will cause the credit to terminate.

WAITING LIST IN EFFECT

As a result of the annual budgetary limitation of $1.5 million and the large number of applications received for this credit, a waiting list has been established wherein approved applications are placed on the list in the order received by the Office of Budget and Finance. For informational purposes and subject to change based on the number of applications received—for an application approved on March 26, 2018, the applicant is eligible to be awarded the credit on the July 1, 2023, Property Tax Bill (five-year cycle) if the property has not transferred.

GUIDELINES

The amount of the tax credit under this section is:

  • 50 percent of the eligible cost or $5,000, whichever is less
  • $1,500 for a hot water supply system

Eligible costs include only those expenses incurred by the applicant within the 12 months before the initial application for the credit and may include:

  • Any part, component or accessory equipment necessary for operating the device
  • The reasonable costs associated with installation of the device

The applicant must submit detailed receipts listing the amount and dates of payment and the Permit Number for the electrical inspection completed by the Baltimore County Electrical Inspection Office.

APPLY FOR THE TAX CREDIT

The application for the Energy Conservation Devices Tax Credit must be submitted no later than June 1 of the year immediately preceding the first taxable year for which the credit is sought.

A credit claimed during a tax year may not exceed the amount of the property taxes owed during that year and any excess amount may be carried forward for up to two additional tax years.

Follow the steps below to apply for the Energy Conservation Devices Tax Credit.

STEP 1: GATHER REQUIRED DOCUMENTATION

You must submit the following:

  • Detailed receipts listing the amount and dates of payment for installed devices
  • The Permit Number for the electrical inspection completed by the Baltimore County Electrical Inspection Office

Failure to provide this information will result in the credit being denied.

STEP 2: DECIDE HOW YOU WANT TO APPLY

APPLY ONLINE

To apply for the Energy Conservation Devices Tax Credit online, you'll need:

  • A valid email address
  • All documentation from Step 1 above

Apply Now

APPLY BY MAIL OR IN PERSON

To apply by mail or in person, you must:

Send or bring your application to:

Office of Budget and Finance
Property Tax Credit Administration
Energy Conservation Devices Tax Credit
400 Washington Avenue, Room 150
Towson, Maryland 21204