The Maryland Energy Administration (MEA) is pleased to announce the launch of the Tax Year 2018 Energy Storage Tax Credit Program. The program is designed to encourage the deployment of energy storage systems in Maryland.
The program is available to eligible residential and commercial taxpayers who have installed a qualifying energy storage system on their residential or commercial property in Maryland during Tax Year 2018 (January 1 - December 31, 2018). MEA may award up to $750,000 in energy storage tax credits on a first come, first served basis while funding is available.
MEA is currently reserving $225,000 for residential taxpayers and $525,000 for commercial taxpayers. If either of the reserved funding allocations become oversubscribed, eligible applicants will be placed onto a wait list as long as funding remains in the other funding allocation. The funding area allocations by category will be removed on October 1, 2018, and tax credits will be assigned to eligible applicants on the waitlist in the order the eligible applications were received. Residential and commercial applicants placed onto the waitlist in Tax Year 2018 cannot be carried over to Tax Year 2019. Under no circumstances will more than $750,000 in energy storage tax credit certificates be awarded in a single Tax Year.
As of July 30, 2018, there is $143,710.50 currently available for residential tax credits and $525,000 available for commercial tax credits.
The Energy Storage Tax Credit Program utilizes an online application. Click the link below to begin your application.
Disclaimer: The Maryland Energy Administration is not a tax office and any/all program guidance should not be considered tax advice. If you have any questions about Maryland State Income Taxes, please contact the Comptroller of Maryland (http://www.marylandtaxes.gov).
Energy storage tax credit certificates are calculated differenty for systems installed at residential and commercial properties. A tax credit certificate is calculated as the lesser amount of:
Click Here to view the Example Tax Credit Calculations Fact Sheet.
The Energy Storage Tax Credit Program is open to the following groups:
Commercial Property means nonresidential property with a commercial, industrial, or government use as outlined in the definition for the “Commercial Clean Energy Grant” in COMAR 14.26.04.02(5) and includes multifamily properties.
Residential Property means property, including a single-family home and an individual unit of a multifamily property or mixed use facility, that has the purpose of serving as a primary residence, as outlined in COMAR 14.26.04.02 (18).
An energy storage tax credit may be claimed for qualifying systems that store the following types of energy:
All energy storage systems must store energy for the following purposes:
The Energy Storage Tax Credit Program utilizes an online application. Please be sure to review the Funding Opportunity Announcement (FOA) document for a complete overview of the program including general terms & conditions and application requirements before submitting an application.
Click Here to Apply
Submitting an application to the Energy Storage Tax Credit Program does not guarantee that you will be awarded a Tax Credit Certificate.
If a contractor is filling out the application on behalf of the authorized applicant, please download, print, sign, and upload the Signature Page. The Authorized signature page must be signed by both the Contractor and the authorized applicant.
Authorized Applicant Signature Form
Generally, for taxable years beginning after December 31, 2012, taxpayers must file their Maryland income tax return electronically (Form 500 for Corporations, Form 510 and Form 510 Schedule K-1 for Pass-Through Entities, and Form 502 or 505 for Individuals) in order to claim a Business Income Tax Credit. They must complete the Business Tax Credit Form 500CR section of the electronic return and include a binary attachment or PDF of the certification received from the Maryland Energy Administration.
Please see the Comptroller’s website, www.marylandtaxes.gov for additional information regarding filing procedures.
Business Energy Investment Tax Credit (ITC) – United States Internal Revenue Service (IRS)
Federal Tax Incentives for Battery Storage Systems Factsheet - National Renewable Energy Laboratory (NREL)
Maryland Energy Storage Legislation (Chapter 389/SB 758)
Annotated Code of Maryland Article - Tax - General §10–719
Energy Storage - Considerations for Maryland
For questions, suggestions, or more information, please contact Brandon Baik or Samuel Beirne via email at email@example.com or by phone at (410) 537-4000.
For questions regarding Maryland State Income Taxes, please contact the Comptroller of Maryland (http://www.marylandtaxes.gov).
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