LAWRENCE J. HOGAN, JR., Governor Ch. 415
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Chapter 415
(House Bill 76)
AN ACT concerning
Community Solar Energy Generating Systems – Exemption From Energy and
Property Taxes
FOR the purpose of exempting certain community solar energy generating systems from
local energy taxes and personal property taxes; prohibiting the supervisor of a county
or a municipal corporation from accepting applications for the exemption after a
certain date; requiring the State Department of Assessments and Taxation to report
annually certain information to certain committees of the General Assembly; and
generally relating to tax exemptions an exemption from the personal property tax
for community solar energy generating systems.
BY adding to
Article – Local Government
Section 20–203 to be under the amended subtitle “Subtitle 2. Limitations on
Authority to Tax”
Annotated Code of Maryland
(2013 Volume and 2021 Supplement)
BY repealing and reenacting, with amendments,
Article – Tax – Property
Section 7–237
Annotated Code of Maryland
(2019 Replacement Volume and 2021 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Local Government
Subtitle 2. Limitations on Authority to Tax [Advertising].
20–203.
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) “BROWNFIELD” MEANS:
(I) A FORMER INDUSTRIAL OR COMMERCIAL SITE IDENTIFIED
BY FEDERAL OR STATE LAWS OR REGULAT IONS AS CONTAMINATED OR POLLUTED ; Ch. 415 2022 LAWS OF MARYLAND
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(II) A CLOSED MUNICIPAL O R RUBBLE LANDFILL RE GULATED
UNDER A REFUSE DISPO SAL PERMIT BY THE MARYLAND DEPARTMENT OF THE
ENVIRONMENT ; OR
(III) MINED LANDS AS DEFIN ED IN COMAR 26.21.01.01.
(3) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS THE
MEANING STATED IN § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE.
(4) “ELECTRIC COMPANY ” HAS THE MEANING STAT ED IN § 1–101 OF
THE PUBLIC UTILITIES ARTICLE.
(B) NOTWITHSTANDING ANY O THER LAW, A TAX IMPOSED BY A P OLITICAL
SUBDIVISION OF THE STATE ON THE SALE , USE, DELIVERY, DISTRIBUTION,
PRODUCTION , OR CONSUMPTION OF EN ERGY DOES NOT APPLY TO ENERGY
PRODUCED BY A COMMUN ITY SOLAR ENERGY GEN ERATING SYSTEM THAT:
(1) PROVIDES AT LEAST 50% OF THE ENERGY IT PRO DUCES TO
LOW– OR MODERATE –INCOME CUSTOMERS , AS DEFINED IN REGULA TIONS OF THE
PUBLIC SERVICE COMMISSION, AT A COST THAT IS AT LEAST 20% LESS THAN THE
AMOUNT CHARGED BY TH E ELECTRIC COMPANY T HAT SERVES THE AREA WHERE
THE COMMUNITY SOLAR ENERGY GENERATING SY STEM IS LOCATED ; AND
(2) IS INSTALLED ON A RO OFTOP, PARKING FACILITY CAN OPY, OR
BROWNFIELD .
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
Article – Tax – Property
7–237.
(a) Except as provided in subsection (b) of this section, personal property is
exempt from property tax if the property is machinery or equipment used to generate:
(1) electricity or steam for sale; or
(2) hot or chilled water for sale that is used to heat or cool a building.
(b) Subject to § 7–514 of this title, AND EXCEPT AS PROVID ED IN SUBSECTION
(C) OF THIS SECTION , personal property that is machinery or equipment described in
subsection (a) of this section is subject to county or municipal corporation property tax on: LAWRENCE J. HOGAN, JR., Governor Ch. 415
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(1) 75% of its value for the taxable year beginning July 1, 2000; and
(2) 50% of its value for the taxable year beginning July 1, 2001 and each
subsequent taxable year.
(C) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HAVE THE
MEANINGS INDICATED .
(II) “BROWNFIELD” MEANS:
1. A FORMER INDUSTRIAL OR COMMERCIAL SITE
IDENTIFIED BY FEDERA L OR STATE LAWS OR REGULAT IONS AS CONTAMINATED OR
POLLUTED; OR
2. A CLOSED MUNICIPAL O R RUBBLE LANDFILL
REGULATED UNDER A REFUSE DISPOSAL PERMIT BY T HE MARYLAND DEPARTMENT
OF THE ENVIRONMENT ; OR.
3. MINED LANDS AS DEFIN ED IN COMAR 26.21.01.01.
(III) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS
THE MEANING STATED I N § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE.
(IV) “ELECTRIC COMPANY ” HAS THE MEANING STAT ED IN §
1–101 OF THE PUBLIC UTILITIES ARTICLE.
(2) PERSONAL PROPERTY IS EXEMPT FROM COUNTY O R MUNICIPAL
CORPORATION PROPERTY TAX IF THE PROPERTY IS MACHINERY OR EQUI PMENT
THAT:
(I) AS DEFINED IN REGULATION OF THE PUBLIC SERVICE
COMMISSION, IS PART OF A COMMUNI TY SOLAR ENERGY GENE RATING SYSTEM
THAT:
1. HAS A GENERATING CAP ACITY THAT DOES NOT
EXCEED 2 MEGAWATTS AS MEASURE D BY THE ALTERNATING CURRENT RATING OF
THE SYSTEM’S INVERTER; AND
2. PROVIDES AT LEAST 50% OF THE ENERGY IT
PRODUCES TO LOW – OR MODERATE –INCOME CUSTOMERS , AS DEFINED IN
REGULATIONS OF THE PUBLIC SERVICE COMMISSION, AT A COST THAT IS AT LEAST
20% LESS THAN THE AMOUNT CHARGED BY THE ELECT RIC COMPANY THAT SER VES Ch. 415 2022 LAWS OF MARYLAND
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THE AREA WH ERE THE COMMUNITY SO LAR ENERGY GENERATIN G SYSTEM IS
LOCATED; AND
(II) IS INSTALLED ON A RO OFTOP, PARKING FACILITY CAN OPY,
OR BROWNFIELD .
(3) PERSONAL PROPERTY THA T RECEIVES AN EXEMPT ION UNDER
THIS SUBSECTION IS E XEMPT FROM COUNTY OR MUNICIPAL CORPORATION
PROPERTY TAX FOR EAC H TAXABLE YEAR IN WH ICH THE PROPERTY CON TINUES TO
MEET THE REQUIREMENT S FOR THE EXEMPTION UNDER PARAGRAPH (2) OF THIS
SUBSECTION.
(4) THE SUPERVISOR OF A C OUNTY OR A MUNICIPAL CORPORATION
MAY NOT ACCEPT AN AP PLICATION FRO M A PROPERTY OWNER F OR THE EXEMPTION
UNDER THIS SUBSECTIO N AFTER DECEMBER 31, 2024.
(5) ON OR BEFORE OCTOBER 1 EACH YEAR, THE DEPARTMENT SHALL
REPORT TO THE SENATE BUDGET AND TAXATION COMMITTEE AND THE HOUSE
WAYS AND MEANS COMMITTEE, IN ACCORDANCE WITH § 2–1257 OF THE STATE
GOVERNMENT ARTICLE, ON THE NUMBER AND LO CATION OF PROJECTS T HAT, IN
THE IMMEDIATELY PREC EDING TAXABLE YEAR , HAVE RECEIVED THE EX EMPTION
UNDER THIS SUBSECTIO N.
SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall b e
applicable to all taxable years beginning after June 30, 2022.
SECTION 4. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall take
effect July 1, 2022.
SECTION 5. 2. AND BE IT FURTHER ENACTED, That , except as provided in
Section 4 of this Act, this Act shall take effect June 1, 2022, and shall be applicable to all
taxable years beginning after June 30, 2022.
Approved by the Governor, May 16, 2022.