EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0076*
HOUSE BILL 76
Q1, Q7 2lr1247
(PRE–FILED) CF SB 264
By: Delegate Smith Delegates Smith, C. Branch, Charles, Ebersole, Feldmark,
Palakovich Carr, and Wilkins
Requested: November 1, 2021
Introduced and read first time: January 12, 2022
Assigned to: Ways and Means
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 13, 2022
CHAPTER ______
AN ACT concerning 1
Community Solar Energy Generating Systems – Exemption From Energy and 2
Property Taxes 3
FOR the purpose of exempting certain community solar energy generating systems from 4
local energy taxes and personal property taxes; prohibiting the supervisor of a county 5
or a municipal corporation from accepting applications for the exemption after a 6
certain date; requiring the State Department of Assessments and Taxation to report 7
annually certain information to certain committees of the General Assembly; and 8
generally relating to tax exemptions an exemption from the personal property tax 9
for community solar energy generating systems. 10
BY adding to 11
Article – Local Government 12
Section 20–203 to be under the amended subtitle “Subtitle 2. Limitations on 13
Authority to Tax” 14
Annotated Code of Maryland 15
(2013 Volume and 2021 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Tax – Property 18
Section 7–237 19
Annotated Code of Maryland 20
(2019 Replacement Volume and 2021 Supplement) 21 2 HOUSE BILL 76
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Local Government 3
Subtitle 2. Limitations on Authority to Tax [Advertising]. 4
20–203. 5
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 6
INDICATED. 7
(2) “BROWNFIELD” MEANS: 8
(I) A FORMER INDUSTRIAL OR COMMERCIAL SITE I DENTIFIED 9
BY FEDERAL OR STATE LAWS OR REGULAT IONS AS CONTAMINATED OR POLLUTED ; 10
(II) A CLOSED MUNICIPAL O R RUBBLE LANDFILL RE GULATED 11
UNDER A REFUSE DISPO SAL PERMIT BY THE MARYLAND DEPARTMENT OF THE 12
ENVIRONMENT ; OR 13
(III) MINED LANDS AS DEFIN ED IN COMAR 26.21.01.01. 14
(3) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS THE 15
MEANING STATED IN § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE. 16
(4) “ELECTRIC COMPANY ” HAS THE MEANING STAT ED IN § 1–101 OF 17
THE PUBLIC UTILITIES ARTICLE. 18
(B) NOTWITHSTANDING ANY O THER LAW, A TAX IMPOSED BY A P OLITICAL 19
SUBDIVISION OF THE STATE ON THE SALE , USE, DELIVERY, DISTRIBUTION, 20
PRODUCTION , OR CONSUMPTION OF EN ERGY DOES NOT APPLY TO ENERGY 21
PRODUCED BY A COMMUNITY SOLAR ENER GY GENERATING SYSTEM THAT: 22
(1) PROVIDES AT LEAST 50% OF THE ENERGY IT PRO DUCES TO 23
LOW– OR MODERATE –INCOME CUSTOMERS , AS DEFINED IN REGULA TIONS OF THE 24
PUBLIC SERVICE COMMISSION, AT A COST THAT IS AT LEAST 20% LESS THAN THE 25
AMOUNT CHA RGED BY THE ELECTRIC COMPANY THAT SERVES THE AREA WHERE 26
THE COMMUNITY SOLAR ENERGY GENERATING SY STEM IS LOCATED ; AND 27
(2) IS INSTALLED ON A RO OFTOP, PARKING FACILITY CAN OPY, OR 28
BROWNFIELD . 29
HOUSE BILL 76 3
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 1
as follows: 2
Article – Tax – Property 3
7–237. 4
(a) Except as provided in subsection (b) of this section, personal property is 5
exempt from property tax if the property is machinery or equipment used to generate: 6
(1) electricity or steam for sale; or 7
(2) hot or chilled water for sale that is used to heat or cool a building. 8
(b) Subject to § 7–514 of this title, AND EXCEPT AS PROVID ED IN SUBSECTION 9
(C) OF THIS SECTION , personal property that is machinery or equipment described in 10
subsection (a) of this section is subject to county or municipal corporation property tax on: 11
(1) 75% of its value for the taxable year beginning July 1, 2000; and 12
(2) 50% of its value for the taxable year beginning July 1, 2001 and each 13
subsequent taxable year. 14
(C) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HA VE THE 15
MEANINGS INDICATED . 16
(II) “BROWNFIELD” MEANS: 17
1. A FORMER INDUSTRIAL OR COMMERCIAL SITE 18
IDENTIFIED BY FEDERA L OR STATE LAWS OR REGULAT IONS AS CONTAMINATED OR 19
POLLUTED; OR 20
2. A CLOSED MUNICIPAL OR RUBBLE LANDFILL 21
REGULATED UNDER A RE FUSE DISPOSAL PERMIT BY THE MARYLAND DEPARTMENT 22
OF THE ENVIRONMENT ; OR. 23
3. MINED LANDS AS DEFIN ED IN COMAR 26.21.01.01. 24
(III) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS 25
THE MEANING STATED I N § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE. 26
(IV) “ELECTRIC COMPANY ” HAS THE MEANING STAT ED IN § 27
1–101 OF THE PUBLIC UTILITIES ARTICLE. 28
4 HOUSE BILL 76
(2) PERSONAL PROPERTY IS EXEMPT FROM COUNTY O R MUNICIPAL 1
CORPORATION PROPERTY TAX IF THE PROPERTY IS MACHINERY OR E QUIPMENT 2
THAT: 3
(I) AS DEFINED IN REGULA TION OF THE PUBLIC SERVICE 4
COMMISSION, IS PART OF A COMMUNI TY SOLAR ENERGY GENE RATING SYSTEM 5
THAT: 6
1. HAS A GENERATING CAP ACITY THAT DOES NOT 7
EXCEED 2 MEGAWATTS AS MEASURE D BY THE ALTERNATING CURRENT RATING OF 8
THE SYSTEM’S INVERTER; AND 9
2. PROVIDES AT LEAST 50% OF THE ENERGY IT 10
PRODUCES TO LOW – OR MODERATE –INCOME CUSTOMERS , AS DEFINED IN 11
REGULATIONS OF THE PUBLIC SERVICE COMMISSION, AT A COST THAT IS AT LEAST 12
20% LESS THAN THE AMOUNT CHARGED BY THE ELECT RIC COMPANY THAT SER VES 13
THE AREA WHERE THE C OMMUNITY SOLAR ENERG Y GENERATING SYSTEM IS 14
LOCATED; AND 15
(II) IS INSTALLED ON A RO OFTOP, PARKING FACILITY CAN OPY, 16
OR BROWNFIELD . 17
(3) PERSONAL PROPERTY THA T RECEIVES AN EXEMPT ION UNDER 18
THIS SUBSECTION IS EXEMPT FROM COUNTY O R MUNICIPAL CORPORAT ION 19
PROPERTY TAX FOR EAC H TAXABLE YEAR IN WH ICH THE PROPERTY CON TINUES TO 20
MEET THE REQUIREMENT S FOR THE EXEMPTION UNDER PARAGRAPH (2) OF THIS 21
SUBSECTION. 22
(4) THE SUPERVISOR OF A C OUNTY OR A MUNICIPAL CORPORATION 23
MAY NOT ACCEPT AN APP LICATION FROM A PROP ERTY OWNER FOR THE E XEMPTION 24
UNDER THIS SUBSECTIO N AFTER DECEMBER 31, 2024. 25
(5) ON OR BEFORE OCTOBER 1 EACH YEAR, THE DEPARTMENT SHALL 26
REPORT TO THE SENATE BUDGET AND TAXATION COMMITTEE AND THE HOUSE 27
WAYS AND MEANS COMMITTEE, IN ACCORDANCE WITH § 2–1257 OF THE STATE 28
GOVERNMENT ARTICLE, ON THE NUMBER AND LO CATION OF PROJECTS T HAT, IN 29
THE IMMEDIATELY PREC EDING TAXABLE YEAR , HAVE RECEIVED THE EX EMPTION 30
UNDER THIS SUBSECTIO N. 31
SECTION 3. AND BE IT FURTHER ENACTED, Th at Section 2 of this Act shall be 32
applicable to all taxable years beginning after June 30, 2022. 33
SECTION 4. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall take 34
effect July 1, 2022. 35 HOUSE BILL 76 5
SECTION 5. 2. AND BE IT FURTHER ENACTED, That , except as provided in 1
Section 4 of this Act, this Act shall take effect June 1, 2022, and shall be applicable to all 2
taxable years beginning after June 30, 2022. 3
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.