UPDATE: Governor Larry Hogan issued an executive order on March 12th mandating teleworking for non-essential state
employees across all state agencies in response to COVID-19. During this
time, the Maryland Energy Administration (MEA) energy storage tax credit program staff can be reached via email at firstname.lastname@example.org Information submitted to MEA by postal mail may have processing
times affected by the office closure. We apologize for any inconvenience
this may cause and we appreciate your understanding.
MEA is pleased to announce the launch of the Tax Year 2020 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 2020 (January 1 - December 31, 2020). 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 2020.
The deadline for submitting an application for a Tax Year 2020 energy storage tax credit is January 15, 2021 at 11:59 PM EST. In addition, please note that MEA will not accept missing documents and/or information for applications on file for Tax Year 2020 after January 20, 2021 at 11:59 PM EST.
MEA is initially reserving $300,000 for residential taxpayers and $450,000 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 available in the other funding allocation. The reserved funding allocations will be removed on July 1, 2020, 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 2020 cannot be carried over to Tax Year 2021 or any other future tax year. To comply with the enabling statute, under no circumstances will more than $750,000 in energy storage income tax credit certificates be awarded for a single Tax Year. Current law authorizes MEA to offer this program for Tax Years 2018, 2019, 2020, 2021, and 2022. More information can be found in the program TY 2020 Energy Storage Tax Credit Notice of Availability (NOA).
As of March 3, 2020, the program has $271,370 available for residential tax credits and $450,000 available for commercial tax credits. This is equal to 96 percent of the total tax credit allowance for Tax Year 2020.
The Energy Storage Tax Credit Program utilizes an online application. Click the link below to begin your application.
MEA will not accept applications for the Tax Year 2020 Maryland Energy Storage Income Tax Credit Program after January 15, 2021 at 11:59 pm EST.
MEA will not accept outstanding documents/information for applications on file for the Tax Year 2020 Energy Storage Tax Credit Program after January 20, 2021 at 11:59 PM EST.
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) and/or a licensed tax professional.
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:
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:
Applicants must certify under penalty of perjury to the best of their knowledge that the information provided in Application submissions and all of its attachments are complete, accurate, and true. Applicants must further certify they are authorized to submit the Application, and agree to the terms and conditions stated below:
The Maryland Energy Storage Income Tax Credit Program (TY 2020) utilizes an online application. Please be sure to review the TY 2020 Energy Storage Tax Credit Notice of Availbility (NOA) for a complete overview of the program including general terms & conditions and application requirements before submitting an application.
Click Here to Apply
Authorized Applicant Signature Form
If a Third Party Contractor (Energy Storage Installation Company) is filling out the application on behalf of the Property Owner (Residential Homeowner or Business Owner), please download, print, and sign the Authorized Applicant Signature Form and include it with your Application submission. The Authorized Applicant Signature Form must be signed by both the Third Party Contractor and the Property Owner.
Authorized Applicant Signature Form - TY 2020
Paper applications are available upon request. Please contact Samuel Beirne via email at email@example.com or by phone 410-537-4000 to request a paper application. Paper applications will be delivered by first-class mail.
If any information is deemed confidential, personally identifiable, or proprietary, please contact MEA at firstname.lastname@example.org to identify another way of securely transferring this information.
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
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
For questions, suggestions, or more information, please contact Samuel Beirne or Chidinma Emenike 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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