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.
Italics indicate opposite chamber/conference committee amendments.
*sb0215*
SENATE BILL 215
Q3, M3 (2lr0101)
ENROLLED BILL
— Budget and Taxation/Ways and Means —
Introduced by Chair, Budget and Taxation Committee (By Request – Departmental
– Maryland Energy Administration)
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, fo r his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
President.
CHAPTER ______
AN ACT concerning 1
Income Tax – Energy Storage Tax Credit – Alterations and Extension 2
Energy Storage Systems – Income Tax Credit and Grant Program 3
FOR the purpose of increasing the total amount of tax credit certificates that the Maryland 4
Energy Administration may issue in a taxable year for the costs of installing an 5
energy storage system; authorizing, under certain circumstances, a taxpayer to claim 6
a refund of the credit; altering the date by which an energy storage system is 7
required to be installed for purposes of eligibility for the credit; a certain credit 8
against the State income tax for the costs of installing an energy storage system; 9
establishing the Energy Storage System Grant Program in the Maryland Energy 10
Administration to provide grants to certain applicants for the purchase and 11
installation of energy storage systems; terminating the energy storage tax credit; 12
establishing the Energy Storage System Grant Fund as a special, nonlapsing fund; 13
and generally relating to the energy storage tax credit and grant program. 14 2 SENATE BILL 215
BY repealing and reenacting, without amendments, 1
Article – Tax – General 2
Section 10–719(a) and (b) 3
Annotated Code of Maryland 4
(2016 Replacement Volume and 2021 Supplement) 5
BY repealing and reenacting, with amendments, 6
Article – Tax – General 7
Section 10–719(d), (f), and (g) 10–719(g) 8
Annotated Code of Maryland 9
(2016 Replacement Volume and 2021 Supplement) 10
BY adding to 11
Article – State Government 12
Section 9–2010 13
Annotated Code of Maryland 14
(2021 Replacement Volume) 15
BY repealing 16
Article – Tax – General 17
Section 10–719 18
Annotated Code of Maryland 19
(2016 Replacement Volume and 2021 Supplement) 20
(As enacted by Section 1 of this Act) 21
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22
That the Laws of Maryland read as follows: 23
Article – Tax – General 24
10–719. 25
(a) (1) In this section the following words have the meanings indicated. 26
(2) “Administration” means the Maryland Energy Administration. 27
(3) “Energy storage system” means a system used to store electrical energy, 28
or mechanical, chemical, or thermal energy that was once electrical energy, for use as 29
electrical energy at a later date or in a process that offsets electricity use at peak times. 30
(4) “Taxpayer” means: 31
(i) the owner of a residential property who purchases and installs 32
an energy storage system on the residential property; 33
SENATE BILL 215 3
(ii) the owner of a commercial property who purchases and installs 1
an energy storage system on the commercial property; or 2
(iii) an individual or a corporation that owns or pays for the 3
installation of an energy storage system that supplies electrical energy intended for use on 4
the residential or commercial property on which the energy storage system is installed. 5
(b) Subject to the limitations of this section, a taxpayer that receives a tax credit 6
certificate may claim a credit against the State income tax for the total installed costs of an 7
energy storage system installed on residential or commercial property during the taxable 8
year. 9
(d) The Administration may not issue an aggregate amount of tax credit 10
certificates exceeding [$750,000] $1,000,000 for a taxable year. 11
(f) (1) (I) [The] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 12
SUBSECTION AND SUBJE CT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH , THE total 13
amount of the credit allowed under this section for any taxable year may not exceed the 14
State income tax for that taxable year, calculated before the application of the credits under 15
this section and §§ 10–701 and 10–701.1 of this subtitle, but after the application of other 16
credits allowable under this subtitle. 17
[(2)] (II) The unused amount of credit for any taxable year may not be 18
carried over to any other taxable year. 19
(2) (I) THIS PARAGRAPH APPLIE S ONLY TO A TAXPAYER WHO IS AN 20
INDIVIDUAL WHO OWNS AND PAYS FOR THE INS TALLATION OF AN ENER GY STORAGE 21
SYSTEM THAT SUPPLIES ELECTRICAL ENERGY INT ENDED FOR USE ON THE PRIMARY 22
RESIDENCE OF THE TAX PAYER. 23
(II) FOR ANY TAXABLE YEAR BEGINNING AFTER DECEMBER 31, 24
2022, IF THE TAX CREDIT AL LOWED UNDER THIS SEC TION EXCEEDS THE TOT AL TAX 25
OTHERWISE PAYABLE BY THE TAXPAYER FOR THA T TAXABLE YEAR, THE TAXPAYER 26
MAY CLAIM A REFUND I N THE AMOUNT OF THE EXCESS. 27
(g) The credit under this section may not be claimed for an energy storage system 28
installed before January 1, 2018, or after December 31, [2022] 2024. 29
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 30
1, 2022, and shall be applicable to all taxable years beginning after December 31, 2021. 31
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 32
as follows: 33
Article – State Government 34
4 SENATE BILL 215
9–2010. 1
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 2
INDICATED. 3
(2) “ELIGIBLE APPLICANT ” MEANS: 4
(I) THE OWNER OF A RESID ENTIAL PROPERTY WHO PURCHASES 5
AND INSTALLS AN ENER GY STORAGE SYSTEM ON THE RESIDENTIAL PROPERTY; 6
(II) THE OWNER OF A COMME RCIAL PROPERTY WHO P URCHASES 7
AND INSTALLS AN ENER GY STORAGE SYSTEM ON THE COMMERCIAL PROPE RTY; OR 8
(III) AN INDIVIDUAL OR A B USINESS ENTITY THAT OWNS OR PAYS 9
FOR THE INSTALLATION OF AN ENERGY STORAGE SYSTEM THAT SU PPLIES 10
ELECTRICAL ENERGY IN TENDED FOR USE ON TH E RESIDENTIAL OR COM MERCIAL 11
PROPERTY ON WHICH TH E ENERGY STORAGE SYS TEM IS INSTALLED . 12
(3) “ENERGY STORAGE SYSTEM ” MEANS A SYSTEM USED TO STORE 13
ELECTRICAL ENERGY , OR MECHANICAL , CHEMICAL, OR THERMAL ENERGY TH AT WAS 14
ONCE ELECTRICAL ENER GY, FOR USE AS ELECTRICA L ENERGY AT A LATER DATE OR 15
IN A PROCESS THAT OF FSETS ELECTRICITY US E AT PEAK TIMES. 16
(4) “FUND” MEANS THE ENERGY STORAGE SYSTEM GRANT FUND. 17
(5) “PROGRAM” MEANS THE ENERGY STORAGE SYSTEM GRANT 18
PROGRAM. 19
(B) THERE IS AN ENERGY STORAGE SYSTEM GRANT PROGRAM IN THE 20
ADMINISTRATION . 21
(C) THE PURPOSE OF THE PROGRAM IS TO PROVIDE GRANTS TO 22
INDIVIDUALS AND BUSI NESS ENTITIES FOR A PORTIO N OF THE COSTS OF 23
PURCHASING AND INSTA LLING ENERGY STORAGE SYSTEMS. 24
(D) THE ADMINISTRATION SHALL : 25
(1) ADMINISTER THE PROGRAM; 26
(2) ESTABLISH APPLICATIO N PROCEDURES FOR THE PROGRAM; AND 27
(3) AWARD GRANTS UNDER T HE PROGRAM. 28
SENATE BILL 215 5
(E) SUBJECT TO THE AVAILA BILITY OF MONEY IN T HE FUND, AN ELIGIBLE 1
APPLICANT MAY APPLY FOR A GRANT UNDER TH E PROGRAM FOR COSTS INC URRED 2
TO PURCHASE AND INST ALL AN ENERGY STORAG E SYSTEM. 3
(F) A GRANT AWARDED UNDER THE PROGRAM MAY NOT EXCEE D THE 4
LESSER OF: 5
(1) (I) FOR AN ENERGY STORAG E SYSTEM INSTALLED O N A 6
RESIDENTIAL PROPERTY , $5,000; OR 7
(II) FOR AN ENERGY STORAG E SYSTEM INSTALLED O N A 8
COMMERCIAL PROPERTY , $150,000; OR 9
(2) 30% OF THE TOTAL INSTALL ED COSTS OF THE ENER GY STORAGE 10
SYSTEM. 11
(G) THE ADMINISTRATION SHALL APPR OVE ALL APPLICATIONS THAT 12
QUALIFY FOR A GRANT UNDER THE PROGRAM: 13
(1) ON A FIRST–COME, FIRST–SERVED BASIS; AND 14
(2) IN A TIMELY MANNER . 15
(H) A GRANT UNDER THIS SEC TION MAY NOT BE AWAR DED FOR AN ENERGY 16
STORAGE SYSTEM INSTA LLED BEFOR E JANUARY 1, 2025. 17
(I) (1) THERE IS AN ENERGY STORAGE SYSTEM GRANT FUND. 18
(2) THE ADMINISTRATION SHALL ADMINISTER THE FUND. 19
(3) (I) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT 20
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 21
(II) THE STATE TREASURER SHALL HOLD THE FUND 22
SEPARATELY, AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 23
(4) THE FUND CONSISTS OF : 24
(I) MONEY APPROPRIATED I N THE STATE BUDGET TO THE 25
FUND; AND 26
(II) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED 27
FOR THE BENEFIT OF T HE FUND. 28
6 SENATE BILL 215
(5) THE FUND MAY BE USED ONLY FOR: 1
(I) PROVIDING GRANTS UND ER THE PROGRAM TO ELIGIBLE 2
APPLICANTS; AND 3
(II) ADMINISTRATIVE COSTS OF THE PROGRAM. 4
(6) (I) THE STATE TREASURER SHALL INVES T THE MONEY OF THE 5
FUND IN THE SAME MANNER AS OTH ER STATE MONEY MAY BE IN VESTED. 6
(II) ANY INTEREST EARNINGS OF THE FUND SHALL BE 7
CREDITED TO THE GENERAL FUND OF THE STATE. 8
(J) THE ADMINISTRATION MAY AD OPT REGULATIONS TO C ARRY OUT THIS 9
SECTION. 10
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 11
as follows: 12
Article – Tax – General 13
[10–719. 14
(a) (1) In this section the following words have the meanings indicated. 15
(2) “Administration” means the Maryland Energy Administration. 16
(3) “Energy storage system” means a system used to store electrical energy, 17
or mechanical, chemical, or thermal energy that was once electrical energy, for use as 18
electrical energy at a later date or in a process that offsets electricity use at peak times. 19
(4) “Taxpayer” means: 20
(i) the owner of a residential property who purchases and installs an 21
energy storage system on the residential property; 22
(ii) the owner of a commercial property who purchases and installs 23
an energy storage system on the commercial property; or 24
(iii) an individual or a corporation that owns or pays for the 25
installation of an energy storage system that supplies electrical energy intended for use on 26
the residential or commercial property on which the energy storage system is installed. 27
(b) Subject to the limitations of this section, a taxpayer that receives a tax credit 28
certificate may claim a credit against the State income tax for the total installed costs of an 29 SENATE BILL 215 7
energy storage system installed on residential or commercial property during the taxable 1
year. 2
(c) On application by a taxpayer, the Administration shall issue a tax credit 3
certificate that may not exceed the lesser of: 4
(1) (i) for an energy storage system installed on a residential property, 5
$5,000; or 6
(ii) for an energy storage system installed on a commercial property, 7
$150,000; or 8
(2) 30% of the total installed costs of the energy storage system. 9
(d) The Administration may not issue an aggregate amount of tax credit 10
certificates exceeding $750,000 for a taxable year. 11
(e) The Administration shall approve all applications that qualify for a tax credit 12
certificate: 13
(1) on a first–come, first–served basis; and 14
(2) in a timely manner. 15
(f) (1) The total amount of the credit allowed under this section for any taxable 16
year may not exceed the State income tax for that taxable year, calculated before the 17
application of the credits under this section and §§ 10–701 and 10–701.1 of this subtitle, but 18
after the application of other credits allowable under this subtitle. 19
(2) The unused amount of credit for any taxable year may not be carried 20
over to any other taxable year. 21
(g) The credit under this section may not be claimed for an energy storage system 22
installed before January 1, 2018, or after December 31, 2024. 23
(h) On or before January 31 each taxable year, the Administration shall report to 24
the Comptroller on the tax credit certificates issued under this section during the prior 25
taxable year. 26
(i) The Administration, in consultation with the Comptroller, shall adopt 27
regulations to carry out this section.] 28
SECTION 4. AND BE IT FURTHER ENACTED, That: 29
(a) Section 1 of this Act shall be applicable to taxable years beginning after 30
December 31, 2021, but before January 1, 2025. 31
8 SENATE BILL 215
(b) Section 3 of this Act shall be applicable to taxable years beginning after 1
December 31, 2024. 2
SECTION 5. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 3
effect July 1, 2024. 4
SECTION 6. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall take 5
effect July 1, 2025. 6
SECTION 7. AND BE IT FURTHER ENACTED, That, except as provided in Sections 7
5 and 6 of this Act, this Act shall take effect July 1, 2022. 8
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.