Maryland Energy Storage Income Tax Credit - Tax Year 2023

Program Description: The Maryland Energy Storage Income tax credit designed to encourage the deployment of energy storage systems in Maryland. The tax credit is available to residential and commercial taxpayers who have installed an energy storage system on their residential or commercial property in Maryland. 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. Current law authorizes MEA to offer the program through calendar year 2024.

The total amount of tax credits for the applications MEA has received exceeds the remaining budget for the current tax year. MEA anticipates that the program will be out of funding by the time these applications are processed in the coming weeks. THEREFORE, AS OF AUGUST 1, 2023, MEA WILL NOT BE ACCEPTING ANY ADDITIONAL ENERGY STORAGE INCOME TAX CREDIT APPLICATIONS AT THIS TIME.

NOTE REGARDING TAX QUESTIONS: MEA is not able to provide tax advice. If you have a question regarding the taxability of your Maryland Energy Storage Income Tax Credit, or tax-related questions about the credit in general, please consult a qualified tax professional.

As of August 1, 2023, the program budget is exhausted. If you submitted a residential application between March 3, 2023 and July 31, 2023, your application will be reviewed, and if it meets the eligibility requirements will be issued a certificate in the order that it was received, until funding is exhausted. MEA will issue tax credit certificates for eligible waitlisted applications in the order in which they were received before issuing certificates to new applicants, until the end of the Tax Year or until funding is exhausted, whichever comes first. Applicants placed onto the waitlist in Tax Year 2023 cannot be carried over to Tax Year 2024. MEA cannot guarantee that all eligible applications we have received will be issued certificates, based on funding availability.

MEA is not accepting any additional 2023 Energy Storage Income Tax Credit Applications at this time. Should any funding remain after MEA completes processing all of the applications we have received, we will reopen for new applications.

Type of Program: Income Tax Credit Program; first-come, first served.

Program Application Deadline: MEA will not accept applications for Tax Year 2023 after January 15, 2024, at 5:00 pm Eastern. In addition, MEA will not accept missing documents and/or information for applications on file for Tax Year 2023 after January 20, 2024, at 5:00 pm Eastern.

Anticipated Program Budget: $750,000.

For more information, please see the Funding Opportunity Announcement below.

Program Documents:

For more information, contact MEA regarding Maryland Energy Storage Tax Credit – Tax Year 2022 by email at energystorage.mea@maryland.gov or by phone at 410-537-4000 to speak with Abigail Antonini, the MEA program manager.

Disclaimer - The Maryland Energy Administration cannot provide tax advice. If you have any questions about Maryland State Taxes, please contact the Comptroller of Maryland (https://www.marylandtaxes.gov/) and/or a licensed tax professional.

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