The Maryland Energy Administration (MEA) is pleased to announce the launch of the Tax Year 2021 Maryland Energy Storage Income Tax Credit Program (the program). The program is designed to encourage the deployment of energy storage systems in Maryland.
The program is available to residential and commercial taxpayers who have installed an energy storage system on their residential or commercial property in Maryland during Tax Year 2021 (January 1 - December 31, 2021). Under the enabling statute, MEA may award a total of $750,000 in tax credit certificates during a given tax year. Tax credit certificates will be awarded to eligible applicants on a first come, first served basis during Tax Year 2021. Current law authorizes MEA to offer the program for Tax Years 2018, 2019, 2020, 2021, and 2022. Please review the TY 2021 Maryland Energy Storage Income Tax Credit Program Notice of Availability (NOA) before starting your application.
As of May 17, 2021, the program has a total of $594,865 available for energy storage tax credit certificates. This is equal to 79 percent of the total tax credit allowance for Tax Year 2021. Remaining tax credits available is further broken down by the Reserved Tax Credit Allocations are detailed below.
Reserved Tax Credit Allocations
MEA will not accept applications for the Tax Year 2021 Maryland Energy Storage Income Tax Credit Program after January 15, 2022 at 11:59 pm Eastern.
MEA will not accept outstanding documents/information for applications on file for the Tax Year 2021 Energy Storage Tax Credit Program after January 20, 2022 at 11:59 pm Eastern.
The Program is open to the following taxpayers that have purchased an energy storage system:
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).
Eligible System Technology
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:
Tax Credit Calculations
Energy storage tax credit certificates are calculated differently for systems installed on residential and commercial properties. A tax credit certificate is calculated as the lower amount of:
MEA may award a total of $750,000 in tax credit certificates for Tax Year 2021. MEA will initially follow the Reserved Tax Credit Allocation noted in Table 1.1 which reserves available tax credits for residential and commercial taxpayers who have either purchased or leased an energy storage system.
If any of the Reserved Tax Credit Allocations become oversubscribed, applicants will be placed onto a wait list if tax credits remain available in the other Reserved Tax Credit Allocations. MEA will remove the Reserved Tax Credit Allocations on July 1, 2021 and tax credits will be issued on a first-come, first-served basis. Applicants that were placed onto the waitlist will be issued tax credit certificates in the order MEA received the applications. If the program utilizes the full $750,000 of tax credit certificates for Tax Year 2021 before July 1, 2021, applicants placed onto the waitlist in Tax Year 2021 cannot be carried over to Tax Year 2022. Under no circumstances will more than $750,000 in energy storage tax credit certificates be awarded for a single Tax Year.
The Program utilizes an online application portal called “Jotform,” which is available below.
Click Here to Apply
Paper applications are available upon request. Please contact Samuel Beirne and/or Chidinma Emenike via email at email@example.com or by phone 410-537-4000 to request a paper application. The deadline to request a paper application is December 31, 2021 at 11:59 PM Eastern. Paper applications will be delivered by first-class mail.
MEA will not accept applications for Tax Year 2021 after January 15, 2022 at 11:59 pm Eastern. In addition, MEA will not accept missing documents and/or information for applications on file for Tax Year 2021 after January 20, 2022 at 11:59 pm Eastern.
If any information is deemed confidential or proprietary and you have concerns about transferring the information as described above, please contact MEA at firstname.lastname@example.org to identify another way to securely transfer this information. Confidential commercial information or proprietary information should be marked confidential.
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.
DISCLAIMER: MEA is not a tax office and any guidance provided by MEA staff or Maryland Energy Storage Income Tax Credit Program documents should not be considered tax advice.
If you have general questions about Maryland state income taxes, please contact the Comptroller of Maryland (http://www.marylandtaxes.gov) and/or a licensed tax professional. If you have any questions directly related to claiming the Maryland Energy Storage Income Tax Credit, please contact the Comptroller of Maryland’s Tax Payer Service Office.
Tax Payer Service Office
Comptroller of Maryland
Applicants must certify under penalty of perjury, to the best of their knowledge, the information provided in the Application submission and all the attachments are complete, accurate, and true. Applicants must further certify they are authorized to submit the Application on behalf of the property owner and agree to the terms and conditions stated below.
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 Policy & Regulations
If you have any questions regarding the Maryland Energy Storage Income Tax Credit Program, please feel free to contact Samuel Beirne or Chidinma Emenike at email@example.com or 410-537-4000. Information submitted to MEA by postal mail may have processing delays and we encourage emails and phone calls when possible.
If you have any questions regarding Maryland State Income Taxes, please contact the Comptroller of Maryland and/or a licensed tax professional.
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