EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0215*
SENATE BILL 215
Q3, M3 2lr0101
(PRE–FILED)
By: Chair, Budget and Taxation Committee (By Request – Departmental –
Maryland Energy Administration)
Requested: October 5, 2021
Introduced and read first time: January 12, 2022
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Income Tax – Energy Storage Tax Credit – Alterations and Extension 2
FOR the purpose of increasing the total amount of tax credit certificates that the Maryland 3
Energy Administration may issue in a taxable year for the costs of installing an 4
energy storage system; authorizing, under certain circumstances, a taxpayer to claim 5
a refund of the credit; altering the date by which an energy storage system is 6
required to be installed for purposes of eligibility for the credit; and generally 7
relating to the energy storage tax credit. 8
BY repealing and reenacting, without amendments, 9
Article – Tax – General 10
Section 10–719(a) and (b) 11
Annotated Code of Maryland 12
(2016 Replacement Volume and 2021 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – Tax – General 15
Section 10–719(d), (f), and (g) 16
Annotated Code of Maryland 17
(2016 Replacement Volume and 2021 Supplement) 18
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20
Article – Tax – General 21
10–719. 22
(a) (1) In this section the following words have the meanings indicated. 23 2 SENATE BILL 215
(2) “Administration” means the Maryland Energy Administration. 1
(3) “Energy storage system” means a system used to store electrical energy, 2
or mechanical, chemical, or thermal energy that was once electrical energy, for use as 3
electrical energy at a later date or in a process that offsets electricity use at peak times. 4
(4) “Taxpayer” means: 5
(i) the owner of a residential property who purchases and installs 6
an energy storage system on the residential property; 7
(ii) the owner of a commercial property who purchases and installs 8
an energy storage system on the commercial property; or 9
(iii) an individual or a corporation that owns or pays for the 10
installation of an energy storage system that supplies electrical energy intended for use on 11
the residential or commercial property on which the energy storage system is installed. 12
(b) Subject to the limitations of this section, a taxpayer that receives a tax credit 13
certificate may claim a credit against the State income tax for the total installed costs of an 14
energy storage system installed on residential or commercial property during the taxable 15
year. 16
(d) The Administration may not issue an aggregate amount of tax credit 17
certificates exceeding [$750,000] $1,000,000 for a taxable year. 18
(f) (1) (I) [The] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 19
SUBSECTION AND SUBJE CT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH , THE total 20
amount of the credit allowed under this section for any taxable year may not exceed the 21
State income tax for that taxable year, calculated before the application of the credits under 22
this section and §§ 10–701 and 10–701.1 of this subtitle, but after the application of other 23
credits allowable under this subtitle. 24
[(2)] (II) The unused amount of credit for any taxable year may not be 25
carried over to any other taxable year. 26
(2) (I) THIS PARAGRAPH APPLIE S ONLY TO A TAXPAYER WHO IS AN 27
INDIVIDUAL WHO OWNS AND PAYS FOR THE INSTALL ATION OF AN ENERGY S TORAGE 28
SYSTEM THAT SUPPLIES ELECTRICAL ENERGY IN TENDED FOR USE ON TH E PRIMARY 29
RESIDENCE OF THE TAX PAYER. 30
(II) FOR ANY TAXABLE YEAR BEGINNING AFTER DECEMBER 31, 31
2022, IF THE TAX CREDIT ALL OWED UNDER THIS SECT ION EXCEEDS THE TOTAL TA X 32
OTHERWISE PAYABLE BY THE TAXPAYER FOR THA T TAXABLE YEAR , THE TAXPAYER 33
MAY CLAIM A REFUND I N THE AMOUNT OF THE EXCESS. 34 SENATE BILL 215 3
(g) The credit under this section may not be claimed for an energy storage system 1
installed before January 1, 2018, or after December 31, [2022] 2024. 2
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 3
1, 2022, and shall be applicable to all taxable years beginning after December 31, 2021. 4