Tax Credits

The Energy Conservation Devices Tax Credit, as defined in Section 11-2-203.3 of the Baltimore County Code, offers assistance to single and multifamily residential property owners who utilize solar or geothermal devices.

Solar energy device means an energy conserving device that:

1. Uses solar energy to heat or cool a structure, to generate electricity to be used in the structure, or to provide hot water for use in the structure; and
2. Meets national safety and performance standards set by a nationally recognized testing laboratory for that type of device.

Geothermal energy device means an energy conserving device that:

1. Uses geothermal energy to heat or cool a structure or to provide hot water for use in the structure; and
2. Meets national safety and performance standards set by a nationally recognized testing laboratory for that type of device.

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.

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.

MAXIMUM INCENTIVE LEVELS BY SYSTEM TYPE

• Heating System: $5,000
• Hot Water Supply System: $1,500
• Electricity Generation: $5,000
• Cooling: $5,000
• Limited to 50 percent of eligible costs
• The credit claimed during any year may not exceed the amount of county property taxes owed during that year and excess credits may be carried forward for up to two additional years. Costs must have been incurred during the 12 months prior to the initial application for the credit. If successful applications exceed this aggregate limit during a given fiscal year, they will be granted during the next fiscal year or years in the order received.

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As defined in Section 11-2-108 of the Baltimore County Code, the Baltimore County Brownfields tax credit is available to properties that have gone through the Maryland Voluntary Cleanup Program (VCP) and received formal designation by the Maryland Department of Business and Economic Development (DBED) as a Qualified Brownfields Site.

To qualify as a Brownfields site, the property must meet one of the following criteria:

• Be located in an area that is contaminated by oil or other hazardous substances
• Be a former industrial or commercial site located in a densely populated urban area and substantially underutilized
• Be an existing or former industrial site that poses a threat to public health or the environment

To learn more and apply for the tax credit, download the Brownfields Tax Credit brochure and application.

As defined in Section 11-2-202 of the Baltimore County Code, the Revitalization Property Tax Credit is available based upon qualified improvements to a mobile home park, senior housing development or commercially zoned property located in designated commercial revitalization districts.

To be eligible to receive this credit, the owner must make "qualified improvements" to the property defined as physical improvements that have a full cash value of $100,000 or more as reflected in the records of the State Department of Records and Taxation (SDAT).

An Application for Revitalization Tax Credit must be filed with the Director of Budget and Finance within 120 days after the issuance of a notice of assessment by SDAT that includes the improvements for which the tax credit is sought. Detailed receipts for all related expenses must be submitted with the application.

As defined in Section 11-2-110 of the Baltimore County Code, the Conservation Land Tax Credit is awarded to owners of real property that qualifies as conservation land as described below.

Conservation Land is defined as real property that is subject to a perpetual conservation easement that was donated to a land trust on or after July 1, 1991.

Conservation land also includes real property that is owned in fee by a qualified land trust and was acquired by the trust on or after July 1, 1991.

A conservation easement restricts the use of the land to include:

• Preservation of natural area
• Environmental education for the public
• Promotion of conservation
• Community parks, conservation and use of agricultural land
• Maintenance of natural area for public use
• Wildlife sanctuary

Submit the Application for Conservation Land Tax Credit no later than June 1, immediately preceding the first taxable year for which the credit is sought.

As defined in Section 11-2-109.1 of the Baltimore County Code, this credit is designed to assist law enforcement personnel, fire personnel and rescue workers (including volunteers) who have suffered permanent and total disability during their service to the citizens of Baltimore County.

To apply, send a copy of the verifying Court Order or Administrative Notice and the tax credit application to the Office of Budget and Finance on or before September 30 of the tax year for which the credit is requested to begin.

CREDIT EXTENSION

The Inflation Reduction Act of 2022 (IRA 2022) extended the energy efficient home credit to cover qualified new energy efficient homes sold or leased after 2021 and before 2033.

CREDIT INCREASE AND MODIFICATION

IRA 2022 also increased and modified the credit for certain homes sold or leased after 2022.

View instructions for Form 8908: Energy Efficient Home Credit.

Businesses in the County's three Enterprise zones—North Point, Southwest or Federal Center at Woodlawn—that expand or add employee are eligible for both County and Maryland tax credits.

Enterprise Zones are an important tool to encourage redevelopment in older industrial and office areas. Since their creation, the zones have spurred the expansion or relocation of 160 businesses. Companies have invested over $300 million in real property improvements and $270 million in machinery and equipment, creating 3,000 new jobs.

Read about business benefits within Baltimore County Enterprise Zones. Businesses in Baltimore County may download and apply for eligibility for County and Maryland Tax Credits.

Send the completed application:

Enterprise Zone Coordinator
Baltimore County Department of Economic Development
Historic Courthouse, Suite 100
400 Washington Avenue
Towson, Maryland 21204

As defined in Section 11-2-203.1 of the Baltimore County Code, commercial buildings that achieve at least a silver rating based on either Leadership in the Energy and Environmental Design (LEED) Green Building rating system or the American National Standards Institute's National Green Building Standard (NGBS) rating system are eligible to receive the High Performance Buildings Tax Credit.

The LEED rating system is used for three categories of building development:

• LEED-NC is used for new construction
• LEED-CS is used for core and shell
• LEED-EB is used for existing buildings

To apply, submit the Application for High Performance Building Tax Credit and appropriate documentation on or before June 1.

The property tax credit for High Performance Homes, as defined in Section 11-2-203.2 of the Baltimore County Code, is based on the percentage of energy efficiency achieved within a residential structure. A corresponding decrease of that percentage is deducted from the Baltimore County real property tax obligation; any other charges or fees listed on your bill are not included in the calculation of the credit.

Follow the steps below to apply for the High Performance Homes Tax Credit.

1. GATHER REQUIRED DOCUMENTATION:

• The certificate indicating the efficiency level of your property provided by your builder, contractor or rater
• Any other relevant documentation

Note: If your application is for a renovated structure, you must submit a HERS Rating completed before and after the renovation.

2. DECIDE HOW YOU WANT TO APPLY

Apply Online

To apply for the High Performance Homes Tax Credit online, you'll need:

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

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Apply by Mail or In Person

To apply by mail or in person, you must:

• Print and complete the High Performance Homes Tax Credit application
• Include all documentation from Step 1 above

Send or bring your application to:

Office of Budget and Finance
Property Tax Credit Administration
High Performance Homes Tax Credit
400 Washington Avenue, Room 150
Towson, Maryland 21204

In order to qualify for the tax credit, a property must be designated as historic. It must either be:

• A contributing structure in a County Historic District
• A contributing structure in a National Register Historic District
• Individually listed on the National Register of Historic Places or on the Final Landmarks List

For more information and to apply for the tax credit for either residential or the commercial property, review the Department of Planning's County Historic Tax Credit frequently asked questions.

Owners of residential properties used for rental or investment purposes need to complete a commercial application.

As defined in Section 11-2-103 of the Baltimore County Code, the Homestead Property Tax Credit is designed to limit the tax burden on property owners whose property assessment have increased. Using a variety of market conditions and other considerations, the Maryland State Department of Assessment and Taxation (SDAT) calculates the annual property assessment for real property located throughout the state.

You can contact the SDAT Credit Office for more information on Homestead Property Tax Credit eligibility or calculations by calling 410-512-4900.

As defined in the Maryland Code—Tax Property Article 9-104, the Homeowners Tax Credit Program is available to all taxpayers (regardless of age) who qualify based on a comparison of their tax bill to their income.

Applications available from the State Department of Assessment and Taxation, will also serve as applications for the Baltimore County Credit. For more information, call the State Department of Assessment and Taxation at Maryland State Homeowner Tax Credit Program, 410-767-4433.

Supplemental Homeowner’s Property Tax Credit

The program provides tax credits for homeowners who qualify based on their household income compared to their tax bill. The Maryland’s Homeowner’s Property Tax Credit (HOTC) program and its Baltimore County supplement are administered by the State Department of Assessments and Taxation (SDAT). The tax credits are granted to eligible homeowners of all ages. The County Supplemental Credit pertains only to County property taxes. The State Dept. of Assessments, Homeowners’ Tax Credit Division determines if the homeowner is eligible to receive a supplemental credit due to a hardship on the dwelling that is owned by the homeowner one time only. Although this credit does not require a separate application, taxpayers must apply for the State HOTC to be considered for the supplemental tax credit.

Maryland Code: Tax Property: Title 9. Property Tax Credits and Property Tax Relief: Subtitle 1. Statewide Mandatory 9-104. Homeowners' tax credits

Baltimore County Code, Article 11, Title 2,Subtitle 1, Section 11-2-111

Effective Date: June 1, 2024

Please contact the State Department of Assessments and Taxation (SDAT) in Baltimore, Maryland at 410-767-4433 Toll Free 800-944-7403

For general inquiries call Baltimore County - Tax Payers Services at 410-887-2404 from Monday thru Friday 8:00 a.m. to 4:00 p.m.

As defined in Section 11-2-109 of the Baltimore County Code, Baltimore County offers a property tax credit to the surviving spouse of a fallen law enforcement officer or rescue worker, including volunteers.

The death must have occurred in the State of Maryland during the course of or as a result of the individual's employment with Baltimore County.

An Application for Surviving Spouse of a Fallen Law Enforcement Office of Rescue Worker must be submitted on or before September 30 in the taxable year for which the credit is desired to begin.

To be eligible for the hardship exemption, the property must be your primary residence and you must currently receive one of the following credits:

1. Homeowners Tax Credit Baltimore County Supplement 
2. Real Property Tax Exemption for Disabled American Veterans or Surviving Spouse of Disabled American Veterans
3. Real Property Tax Credit for Disabled Law Enforcement Officers or Rescue Workers or Surviving Spouses of Fallen Law Enforcement Officers or Rescue Workers

To apply for a hardship exemption from the Bay Restoration Fee, complete and submit the form.

As defined in Section 11-2-106 of the Baltimore County Code, State law exempts $15,000 of a property's assessed value from the real property tax obligations of a blind individual or that person's surviving spouse.

The law also provides that a blind individual may be eligible for a refund of the property taxes paid in the taxable years in which an exemption was authorized but not granted. The refund is retroactive for up to three years.

APPLY FOR AN EXEMPTION

Obtain an application for exemption from the State Department of Assessments and Taxation (SDAT) and file it with that agency. For more information, call SDAT at 410-512-4900.

APPLY FOR A REFUND

To secure a refund, you must first file for and receive an exemption from SDAT, as described above. Then, forward a copy of the approved exemption to the Baltimore County Council along with a letter requesting that a refund be awarded.

Send your refund request to:
Baltimore County Council
400 Washington Avenue, Room 205
Towson, Maryland 21204

EXCLUSIONS

A person who receives this tax relief can not receive the same relief under the Disabled Veteran or Surviving Spouse Tax Exemption.

As defined in Section 11-2-106 of the Baltimore County Code, this law is designed to exempt the home of a disabled veteran or surviving spouse of a disabled veteran from all Baltimore County real property tax obligations.

The law also provides that a disabled veteran or surviving spouse of a disabled veteran may be eligible for a refund of taxes paid for up to three years prior to receiving the exemption.

APPLY FOR AN EXEMPTION

Obtain an application for exemption from the State Department of Assessments and Taxation (SDAT) and file it with that agency. For more information, contact SDAT by calling 410-512-4900.

APPLY FOR A REFUND

To secure a refund you must file for and receive an exemption from SDAT, as described above. Then, submit a copy of the approved exemption to the Baltimore County Council along with a letter requesting that a refund be awarded.

Send your refund request to:
Baltimore County Council
400 Washington Avenue, Room 205
Towson, Maryland 21204

EXCLUSIONS

A person who receives this tax relief may not be awarded relief under the Blind Individual or Surviving Spouse Tax Exemption.