MD
Maryland Senate Bill SB215

Maryland 2022 Regular Session

Maryland Senate Bill SB215 Compare Versions

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1- LAWRENCE J. HOGAN, JR., Governor Ch. 246
21
3-– 1 –
4-Chapter 246
5-(Senate Bill 215)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ Italics indicate opposite chamber/conference committee amendments.
9+ *sb0215*
810
9-Income Tax – Energy Storage Tax Credit – Alterations and Extension
10-Energy Storage Systems – Income Tax Credit and Grant Program
11+SENATE BILL 215
12+Q3, M3 (2lr0101)
13+ENROLLED BILL
14+— Budget and Taxation/Ways and Means —
15+Introduced by Chair, Budget and Taxation Committee (By Request – Departmental
16+– Maryland Energy Administration)
1117
12-FOR the purpose of increasing the total amount of tax credit certificates that the Maryland
13-Energy Administration may issue in a taxable year for the costs of installing an
14-energy storage system; authorizing, under certain circumstances, a taxpayer to claim
15-a refund of the credit; altering the date by which an energy storage system is
16-required to be installed for purposes of eligibility for the credit; a certain credit
17-against the State income tax for the costs of installing an energy storage system;
18-establishing the Energy Storage System Grant Program in the Maryland Energy
19-Administration to provide grants to certain applicants for the purchase and
20-installation of energy storage systems; terminating the energy storage tax credit;
21-establishing the Energy Storage System Grant Fund as a special, nonlapsing fund;
22-and generally relating to the energy storage tax credit and grant program.
18+Read and Examined by Proofreaders:
2319
24-BY repealing and reenacting, without amendments,
25- Article – Tax – General
26- Section 10–719(a) and (b)
27- Annotated Code of Maryland
28- (2016 Replacement Volume and 2021 Supplement)
20+_______________________________________________
21+Proofreader.
22+_______________________________________________
23+Proofreader.
2924
30-BY repealing and reenacting, with amendments,
31- Article – Tax – General
32- Section 10–719(d), (f), and (g) 10–719(g)
33- Annotated Code of Maryland
34- (2016 Replacement Volume and 2021 Supplement)
25+Sealed with the Great Seal and presented to the Governor, fo r his approval this
3526
36-BY adding to
37- Article – State Government
38- Section 9–2010
39- Annotated Code of Maryland
40- (2021 Replacement Volume)
27+_______ day of _______________ at ________________________ o’clock, ________M.
4128
42-BY repealing
43- Article – Tax – General
44- Section 10–719
45- Annotated Code of Maryland
46- (2016 Replacement Volume and 2021 Supplement)
47- (As enacted by Section 1 of this Act)
48- Ch. 246 2022 LAWS OF MARYLAND
29+______________________________________________
30+President.
4931
50-– 2 –
51- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
52-That the Laws of Maryland read as follows:
32+CHAPTER ______
5333
54-Article – Tax – General
34+AN ACT concerning 1
5535
56-10–719.
36+Income Tax – Energy Storage Tax Credit – Alterations and Extension 2
37+Energy Storage Systems – Income Tax Credit and Grant Program 3
5738
58- (a) (1) In this section the following words have the meanings indicated.
39+FOR the purpose of increasing the total amount of tax credit certificates that the Maryland 4
40+Energy Administration may issue in a taxable year for the costs of installing an 5
41+energy storage system; authorizing, under certain circumstances, a taxpayer to claim 6
42+a refund of the credit; altering the date by which an energy storage system is 7
43+required to be installed for purposes of eligibility for the credit; a certain credit 8
44+against the State income tax for the costs of installing an energy storage system; 9
45+establishing the Energy Storage System Grant Program in the Maryland Energy 10
46+Administration to provide grants to certain applicants for the purchase and 11
47+installation of energy storage systems; terminating the energy storage tax credit; 12
48+establishing the Energy Storage System Grant Fund as a special, nonlapsing fund; 13
49+and generally relating to the energy storage tax credit and grant program. 14 2 SENATE BILL 215
5950
60- (2) “Administration” means the Maryland Energy Administration.
6151
62- (3) “Energy storage system” means a system used to store electrical energy,
63-or mechanical, chemical, or thermal energy that was once electrical energy, for use as
64-electrical energy at a later date or in a process that offsets electricity use at peak times.
6552
66- (4) “Taxpayer” means:
53+BY repealing and reenacting, without amendments, 1
54+ Article – Tax – General 2
55+ Section 10–719(a) and (b) 3
56+ Annotated Code of Maryland 4
57+ (2016 Replacement Volume and 2021 Supplement) 5
6758
68- (i) the owner of a residential property who purchases and installs
69-an energy storage system on the residential property;
59+BY repealing and reenacting, with amendments, 6
60+ Article – Tax – General 7
61+ Section 10–719(d), (f), and (g) 10–719(g) 8
62+ Annotated Code of Maryland 9
63+ (2016 Replacement Volume and 2021 Supplement) 10
7064
71- (ii) the owner of a commercial property who purchases and installs
72-an energy storage system on the commercial property; or
65+BY adding to 11
66+ Article – State Government 12
67+ Section 9–2010 13
68+ Annotated Code of Maryland 14
69+ (2021 Replacement Volume) 15
7370
74- (iii) an individual or a corporation that owns or pays for the
75-installation of an energy storage system that supplies electrical energy intended for use on
76-the residential or commercial property on which the energy storage system is installed.
71+BY repealing 16
72+ Article – Tax – General 17
73+ Section 10–719 18
74+ Annotated Code of Maryland 19
75+ (2016 Replacement Volume and 2021 Supplement) 20
76+ (As enacted by Section 1 of this Act) 21
7777
78- (b) Subject to the limitations of this section, a taxpayer that receives a tax credit
79-certificate may claim a credit against the State income tax for the total installed costs of an
80-energy storage system installed on residential or commercial property during the taxable
81-year.
78+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22
79+That the Laws of Maryland read as follows: 23
8280
83- (d) The Administration may not issue an aggregate amount of tax credit
84-certificates exceeding [$750,000] $1,000,000 for a taxable year.
81+Article – Tax – General 24
8582
86- (f) (1) (I) [The] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS
87-SUBSECTION AND SUBJE CT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH , THE total
88-amount of the credit allowed under this section for any taxable year may not exceed the
89-State income tax for that taxable year, calculated before the application of the credits under
90-this section and §§ 10–701 and 10–701.1 of this subtitle, but after the application of other
91-credits allowable under this subtitle.
83+10–719. 25
9284
93- [(2)] (II) The unused amount of credit for any taxable year may not be
94-carried over to any other taxable year.
95- LAWRENCE J. HOGAN, JR., Governor Ch. 246
85+ (a) (1) In this section the following words have the meanings indicated. 26
9686
97-– 3 –
98- (2) (I) THIS PARAGRAPH APPLIE S ONLY TO A TAXPAYER WHO IS AN
99-INDIVIDUAL WHO OWNS AND PAYS FOR THE INS TALLATION OF AN ENER GY STORAGE
100-SYSTEM THAT SUPPLIES ELECTRICAL ENERGY IN TENDED FOR USE ON TH E PRIMARY
101-RESIDENCE OF THE TAX PAYER.
87+ (2) “Administration” means the Maryland Energy Administration. 27
10288
103- (II) FOR ANY TAXABLE YEAR BEGINNING AFTER DECEMBER 31,
104-2022, IF THE TAX CREDIT AL LOWED UNDER THIS SEC TION EXCEEDS THE TOT AL TAX
105-OTHERWISE PAYABLE BY THE TAXPAYER FOR THA T TAXABLE YEAR , THE TAXPAYER
106-MAY CLAIM A REFUND I N THE AMOUNT OF THE EXCESS .
89+ (3) “Energy storage system” means a system used to store electrical energy, 28
90+or mechanical, chemical, or thermal energy that was once electrical energy, for use as 29
91+electrical energy at a later date or in a process that offsets electricity use at peak times. 30
10792
108- (g) The credit under this section may not be claimed for an energy storage system
109-installed before January 1, 2018, or after December 31, [2022] 2024.
93+ (4) “Taxpayer” means: 31
11094
111- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
112-1, 2022, and shall be applicable to all taxable years beginning after December 31, 2021.
95+ (i) the owner of a residential property who purchases and installs 32
96+an energy storage system on the residential property; 33
97+ SENATE BILL 215 3
11398
114- SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
115-as follows:
11699
117-Article – State Government
100+ (ii) the owner of a commercial property who purchases and installs 1
101+an energy storage system on the commercial property; or 2
118102
119-9–2010.
103+ (iii) an individual or a corporation that owns or pays for the 3
104+installation of an energy storage system that supplies electrical energy intended for use on 4
105+the residential or commercial property on which the energy storage system is installed. 5
120106
121- (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS
122-INDICATED.
107+ (b) Subject to the limitations of this section, a taxpayer that receives a tax credit 6
108+certificate may claim a credit against the State income tax for the total installed costs of an 7
109+energy storage system installed on residential or commercial property during the taxable 8
110+year. 9
123111
124- (2) “ELIGIBLE APPLICANT ” MEANS:
112+ (d) The Administration may not issue an aggregate amount of tax credit 10
113+certificates exceeding [$750,000] $1,000,000 for a taxable year. 11
125114
126- (I) THE OWNER OF A RESID ENTIAL PROPERTY WHO PURCHASES
127-AND INSTALLS AN ENER GY STORAGE SYSTEM ON THE RESIDENTIAL PROPERTY;
115+ (f) (1) (I) [The] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 12
116+SUBSECTION AND SUBJE CT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH , THE total 13
117+amount of the credit allowed under this section for any taxable year may not exceed the 14
118+State income tax for that taxable year, calculated before the application of the credits under 15
119+this section and §§ 10–701 and 10–701.1 of this subtitle, but after the application of other 16
120+credits allowable under this subtitle. 17
128121
129- (II) THE OWNER OF A COMME RCIAL PROPERTY WHO P URCHASES
130-AND INSTALLS AN ENER GY STORAGE SYSTEM ON THE COMMERCIAL PROPE RTY; OR
122+ [(2)] (II) The unused amount of credit for any taxable year may not be 18
123+carried over to any other taxable year. 19
131124
132- (III) AN INDIVIDUAL OR A B USINESS ENTITY THAT OWNS OR PAYS
133-FOR THE INSTALLATION OF AN ENERGY STORAGE SYSTEM THAT SU PPLIES
134-ELECTRICAL ENERGY IN TENDED FOR USE ON TH E RESIDENTIAL OR COM MERCIAL
135-PROPERTY ON WHICH TH E ENERGY STORAGE SYS TEM IS INSTALLED .
125+ (2) (I) THIS PARAGRAPH APPLIE S ONLY TO A TAXPAYER WHO IS AN 20
126+INDIVIDUAL WHO OWNS AND PAYS FOR THE INS TALLATION OF AN ENER GY STORAGE 21
127+SYSTEM THAT SUPPLIES ELECTRICAL ENERGY INT ENDED FOR USE ON THE PRIMARY 22
128+RESIDENCE OF THE TAX PAYER. 23
136129
137- (3) “ENERGY STORAGE SYSTEM ” MEANS A SYSTEM USED TO STORE
138-ELECTRICAL ENERGY , OR MECHANICAL , CHEMICAL, OR THERMAL ENERGY TH AT WAS
139-ONCE ELECTRICAL ENER GY, FOR USE AS ELECTRICA L ENERGY AT A LATER DATE OR
140-IN A PROCESS THAT OF FSETS ELECTRICITY US E AT PEAK TIMES.
141- Ch. 246 2022 LAWS OF MARYLAND
130+ (II) FOR ANY TAXABLE YEAR BEGINNING AFTER DECEMBER 31, 24
131+2022, IF THE TAX CREDIT AL LOWED UNDER THIS SEC TION EXCEEDS THE TOT AL TAX 25
132+OTHERWISE PAYABLE BY THE TAXPAYER FOR THA T TAXABLE YEAR, THE TAXPAYER 26
133+MAY CLAIM A REFUND I N THE AMOUNT OF THE EXCESS. 27
142134
143-– 4 –
144- (4) “FUND” MEANS THE ENERGY STORAGE SYSTEM GRANT FUND.
135+ (g) The credit under this section may not be claimed for an energy storage system 28
136+installed before January 1, 2018, or after December 31, [2022] 2024. 29
145137
146- (5) “PROGRAM” MEANS THE ENERGY STORAGE SYSTEM GRANT
147-PROGRAM.
138+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 30
139+1, 2022, and shall be applicable to all taxable years beginning after December 31, 2021. 31
148140
149- (B) THERE IS AN ENERGY STORAGE SYSTEM GRANT PROGRAM IN THE
150-ADMINISTRATION .
141+ SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 32
142+as follows: 33
151143
152- (C) THE PURPOSE OF THE PROGRAM IS TO PROVIDE GRANTS TO
153-INDIVIDUALS AND BUSI NESS ENTITIES FOR A PORTI ON OF THE COSTS OF
154-PURCHASING AND INSTA LLING ENERGY STORAGE SYSTEMS.
144+Article – State Government 34
145+ 4 SENATE BILL 215
155146
156- (D) THE ADMINISTRATION SHALL :
157147
158- (1) ADMINISTER THE PROGRAM;
148+9–2010. 1
159149
160- (2) ESTABLISH APPLICATIO N PROCEDURES FOR THE PROGRAM; AND
150+ (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 2
151+INDICATED. 3
161152
162- (3) AWARD GRANTS UNDER T HE PROGRAM.
153+ (2) “ELIGIBLE APPLICANT ” MEANS: 4
163154
164- (E) SUBJECT TO THE AVAILA BILITY OF MONEY IN T HE FUND, AN ELIGIBLE
165-APPLICANT MAY APPLY FOR A GRANT UNDER TH E PROGRAM FOR COSTS INC URRED
166-TO PURCHASE AND INST ALL AN ENERGY STORAG E SYSTEM.
155+ (I) THE OWNER OF A RESID ENTIAL PROPERTY WHO PURCHASES 5
156+AND INSTALLS AN ENER GY STORAGE SYSTEM ON THE RESIDENTIAL PROPERTY; 6
167157
168- (F) A GRANT AWARDED UNDER THE PROGRAM MAY NOT EXCEE D THE
169-LESSER OF:
158+ (II) THE OWNER OF A COMME RCIAL PROPERTY WHO P URCHASES 7
159+AND INSTALLS AN ENER GY STORAGE SYSTEM ON THE COMMERCIAL PROPE RTY; OR 8
170160
171- (1) (I) FOR AN ENERGY STORAG E SYSTEM INSTALLED O N A
172-RESIDENTIAL PROPERTY , $5,000; OR
161+ (III) AN INDIVIDUAL OR A B USINESS ENTITY THAT OWNS OR PAYS 9
162+FOR THE INSTALLATION OF AN ENERGY STORAGE SYSTEM THAT SU PPLIES 10
163+ELECTRICAL ENERGY IN TENDED FOR USE ON TH E RESIDENTIAL OR COM MERCIAL 11
164+PROPERTY ON WHICH TH E ENERGY STORAGE SYS TEM IS INSTALLED . 12
173165
174- (II) FOR AN ENERGY STORAG E SYSTEM INSTALLED O N A
175-COMMERCIAL PROPERTY , $150,000; OR
166+ (3) “ENERGY STORAGE SYSTEM ” MEANS A SYSTEM USED TO STORE 13
167+ELECTRICAL ENERGY , OR MECHANICAL , CHEMICAL, OR THERMAL ENERGY TH AT WAS 14
168+ONCE ELECTRICAL ENER GY, FOR USE AS ELECTRICA L ENERGY AT A LATER DATE OR 15
169+IN A PROCESS THAT OF FSETS ELECTRICITY US E AT PEAK TIMES. 16
176170
177- (2) 30% OF THE TOTAL INSTALL ED COSTS OF THE ENER GY STORAGE
178-SYSTEM.
171+ (4) “FUND” MEANS THE ENERGY STORAGE SYSTEM GRANT FUND. 17
179172
180- (G) THE ADMINISTRATION SHALL A PPROVE ALL APPLICATI ONS THAT
181-QUALIFY FOR A GRANT UNDER THE PROGRAM:
173+ (5) “PROGRAM” MEANS THE ENERGY STORAGE SYSTEM GRANT 18
174+PROGRAM. 19
182175
183- (1) ON A FIRST–COME, FIRST–SERVED BASIS; AND
176+ (B) THERE IS AN ENERGY STORAGE SYSTEM GRANT PROGRAM IN THE 20
177+ADMINISTRATION . 21
184178
185- (2) IN A TIMELY MANNER .
186- LAWRENCE J. HOGAN, JR., Governor Ch. 246
179+ (C) THE PURPOSE OF THE PROGRAM IS TO PROVIDE GRANTS TO 22
180+INDIVIDUALS AND BUSI NESS ENTITIES FOR A PORTIO N OF THE COSTS OF 23
181+PURCHASING AND INSTA LLING ENERGY STORAGE SYSTEMS. 24
187182
188-– 5 –
189- (H) A GRANT UNDER THIS SEC TION MAY NOT BE AWAR DED FOR AN ENERGY
190-STORAGE SYSTEM INSTA LLED BEFORE JANUARY 1, 2025.
183+ (D) THE ADMINISTRATION SHALL : 25
191184
192- (I) (1) THERE IS AN ENERGY STORAGE SYSTEM GRANT FUND.
185+ (1) ADMINISTER THE PROGRAM; 26
193186
194- (2) THE ADMINISTRATION SHALL ADMINISTER THE FUND.
187+ (2) ESTABLISH APPLICATIO N PROCEDURES FOR THE PROGRAM; AND 27
195188
196- (3) (I) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT
197-SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE.
189+ (3) AWARD GRANTS UNDER T HE PROGRAM. 28
190+ SENATE BILL 215 5
198191
199- (II) THE STATE TREASURER SHALL HOLD THE FUND
200-SEPARATELY, AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND.
201192
202- (4) THE FUND CONSISTS OF :
193+ (E) SUBJECT TO THE AVAILA BILITY OF MONEY IN T HE FUND, AN ELIGIBLE 1
194+APPLICANT MAY APPLY FOR A GRANT UNDER TH E PROGRAM FOR COSTS INC URRED 2
195+TO PURCHASE AND INST ALL AN ENERGY STORAG E SYSTEM. 3
203196
204- (I) MONEY APPROPRIATED I N THE STATE BUDGET TO THE
205-FUND; AND
197+ (F) A GRANT AWARDED UNDER THE PROGRAM MAY NOT EXCEE D THE 4
198+LESSER OF: 5
206199
207- (II) ANY OTHER MONEY FROM ANY OTHER SOURC E ACCEPTED
208-FOR THE BENEFIT OF T HE FUND.
200+ (1) (I) FOR AN ENERGY STORAG E SYSTEM INSTALLED O N A 6
201+RESIDENTIAL PROPERTY , $5,000; OR 7
209202
210- (5) THE FUND MAY BE USED ONLY FOR:
203+ (II) FOR AN ENERGY STORAG E SYSTEM INSTALLED O N A 8
204+COMMERCIAL PROPERTY , $150,000; OR 9
211205
212- (I) PROVIDING GRANTS UND ER THE PROGRAM TO ELIGIBLE
213-APPLICANTS; AND
206+ (2) 30% OF THE TOTAL INSTALL ED COSTS OF THE ENER GY STORAGE 10
207+SYSTEM. 11
214208
215- (II) ADMINISTRATIVE COSTS OF THE PROGRAM.
209+ (G) THE ADMINISTRATION SHALL APPR OVE ALL APPLICATIONS THAT 12
210+QUALIFY FOR A GRANT UNDER THE PROGRAM: 13
216211
217- (6) (I) THE STATE TREASURER SHALL INVES T THE MONEY OF THE
218-FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE IN VESTED.
212+ (1) ON A FIRST–COME, FIRST–SERVED BASIS; AND 14
219213
220- (II) ANY INTEREST EARNINGS OF THE FUND SHALL BE
221-CREDITED TO THE GENERAL FUND OF THE STATE.
214+ (2) IN A TIMELY MANNER . 15
222215
223- (J) THE ADMINISTRATION MAY AD OPT REGULATIONS TO C ARRY OUT THIS
224-SECTION.
216+ (H) A GRANT UNDER THIS SEC TION MAY NOT BE AWAR DED FOR AN ENERGY 16
217+STORAGE SYSTEM INSTA LLED BEFOR E JANUARY 1, 2025. 17
225218
226- SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
227-as follows:
219+ (I) (1) THERE IS AN ENERGY STORAGE SYSTEM GRANT FUND. 18
228220
229-Article – Tax – General
221+ (2) THE ADMINISTRATION SHALL ADMINISTER THE FUND. 19
230222
231-[10–719.
232- Ch. 246 2022 LAWS OF MARYLAND
223+ (3) (I) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT 20
224+SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 21
233225
234-– 6 –
235- (a) (1) In this section the following words have the meanings indicated.
226+ (II) THE STATE TREASURER SHALL HOLD THE FUND 22
227+SEPARATELY, AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 23
236228
237- (2) “Administration” means the Maryland Energy Administration.
229+ (4) THE FUND CONSISTS OF : 24
238230
239- (3) “Energy storage system” means a system used to store electrical energy,
240-or mechanical, chemical, or thermal energy that was once electrical energy, for use as
241-electrical energy at a later date or in a process that offsets electricity use at peak times.
231+ (I) MONEY APPROPRIATED I N THE STATE BUDGET TO THE 25
232+FUND; AND 26
242233
243- (4) “Taxpayer” means:
234+ (II) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED 27
235+FOR THE BENEFIT OF T HE FUND. 28
236+ 6 SENATE BILL 215
244237
245- (i) the owner of a residential property who purchases and installs an
246-energy storage system on the residential property;
247238
248- (ii) the owner of a commercial property who purchases and installs
249-an energy storage system on the commercial property; or
239+ (5) THE FUND MAY BE USED ONLY FOR: 1
250240
251- (iii) an individual or a corporation that owns or pays for the
252-installation of an energy storage system that supplies electrical energy intended for use on
253-the residential or commercial property on which the energy storage system is installed.
241+ (I) PROVIDING GRANTS UND ER THE PROGRAM TO ELIGIBLE 2
242+APPLICANTS; AND 3
254243
255- (b) Subject to the limitations of this section, a taxpayer that receives a tax credit
256-certificate may claim a credit against the State income tax for the total installed costs of an
257-energy storage system installed on residential or commercial property during the taxable
258-year.
244+ (II) ADMINISTRATIVE COSTS OF THE PROGRAM. 4
259245
260- (c) On application by a taxpayer, the Administration shall issue a tax credit
261-certificate that may not exceed the lesser of:
246+ (6) (I) THE STATE TREASURER SHALL INVES T THE MONEY OF THE 5
247+FUND IN THE SAME MANNER AS OTH ER STATE MONEY MAY BE IN VESTED. 6
262248
263- (1) (i) for an energy storage system installed on a residential property,
264-$5,000; or
249+ (II) ANY INTEREST EARNINGS OF THE FUND SHALL BE 7
250+CREDITED TO THE GENERAL FUND OF THE STATE. 8
265251
266- (ii) for an energy storage system installed on a commercial property,
267-$150,000; or
252+ (J) THE ADMINISTRATION MAY AD OPT REGULATIONS TO C ARRY OUT THIS 9
253+SECTION. 10
268254
269- (2) 30% of the total installed costs of the energy storage system.
255+ SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 11
256+as follows: 12
270257
271- (d) The Administration may not issue an aggregate amount of tax credit
272-certificates exceeding $750,000 for a taxable year.
258+Article – Tax – General 13
273259
274- (e) The Administration shall approve all applications that qualify for a tax credit
275-certificate:
260+[10–719. 14
276261
277- (1) on a first–come, first–served basis; and
262+ (a) (1) In this section the following words have the meanings indicated. 15
278263
279- (2) in a timely manner.
280- LAWRENCE J. HOGAN, JR., Governor Ch. 246
264+ (2) “Administration” means the Maryland Energy Administration. 16
281265
282-– 7 –
283- (f) (1) The total amount of the credit allowed under this section for any taxable
284-year may not exceed the State income tax for that taxable year, calculated before the
285-application of the credits under this section and §§ 10–701 and 10–701.1 of this subtitle, but
286-after the application of other credits allowable under this subtitle.
266+ (3) “Energy storage system” means a system used to store electrical energy, 17
267+or mechanical, chemical, or thermal energy that was once electrical energy, for use as 18
268+electrical energy at a later date or in a process that offsets electricity use at peak times. 19
287269
288- (2) The unused amount of credit for any taxable year may not be carried
289-over to any other taxable year.
270+ (4) “Taxpayer” means: 20
290271
291- (g) The credit under this section may not be claimed for an energy storage system
292-installed before January 1, 2018, or after December 31, 2024.
272+ (i) the owner of a residential property who purchases and installs an 21
273+energy storage system on the residential property; 22
293274
294- (h) On or before January 31 each taxable year, the Administration shall report to
295-the Comptroller on the tax credit certificates issued under this section during the prior
296-taxable year.
275+ (ii) the owner of a commercial property who purchases and installs 23
276+an energy storage system on the commercial property; or 24
297277
298- (i) The Administration, in consultation with the Comptroller, shall adopt
299-regulations to carry out this section.]
278+ (iii) an individual or a corporation that owns or pays for the 25
279+installation of an energy storage system that supplies electrical energy intended for use on 26
280+the residential or commercial property on which the energy storage system is installed. 27
300281
301- SECTION 4. AND BE IT FURTHER ENACTED, That:
282+ (b) Subject to the limitations of this section, a taxpayer that receives a tax credit 28
283+certificate may claim a credit against the State income tax for the total installed costs of an 29 SENATE BILL 215 7
302284
303- (a) Section 1 of this Act shall be applicable to taxable years beginning after
304-December 31, 2021, but before January 1, 2025.
305285
306- (b) Section 3 of this Act shall be applicable to taxable years beginning after
307-December 31, 2024.
286+energy storage system installed on residential or commercial property during the taxable 1
287+year. 2
308288
309- SECTION 5. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take
310-effect July 1, 2024.
289+ (c) On application by a taxpayer, the Administration shall issue a tax credit 3
290+certificate that may not exceed the lesser of: 4
311291
312- SECTION 6. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall take
313-effect July 1, 2025.
292+ (1) (i) for an energy storage system installed on a residential property, 5
293+$5,000; or 6
314294
315- SECTION 7. AND BE IT FURTHER ENACTED, That, except as provided in Sections
316-5 and 6 of this Act, this Act shall take effect July 1, 2022.
295+ (ii) for an energy storage system installed on a commercial property, 7
296+$150,000; or 8
317297
318-Approved by the Governor, May 12, 2022.
298+ (2) 30% of the total installed costs of the energy storage system. 9
299+
300+ (d) The Administration may not issue an aggregate amount of tax credit 10
301+certificates exceeding $750,000 for a taxable year. 11
302+
303+ (e) The Administration shall approve all applications that qualify for a tax credit 12
304+certificate: 13
305+
306+ (1) on a first–come, first–served basis; and 14
307+
308+ (2) in a timely manner. 15
309+
310+ (f) (1) The total amount of the credit allowed under this section for any taxable 16
311+year may not exceed the State income tax for that taxable year, calculated before the 17
312+application of the credits under this section and §§ 10–701 and 10–701.1 of this subtitle, but 18
313+after the application of other credits allowable under this subtitle. 19
314+
315+ (2) The unused amount of credit for any taxable year may not be carried 20
316+over to any other taxable year. 21
317+
318+ (g) The credit under this section may not be claimed for an energy storage system 22
319+installed before January 1, 2018, or after December 31, 2024. 23
320+
321+ (h) On or before January 31 each taxable year, the Administration shall report to 24
322+the Comptroller on the tax credit certificates issued under this section during the prior 25
323+taxable year. 26
324+
325+ (i) The Administration, in consultation with the Comptroller, shall adopt 27
326+regulations to carry out this section.] 28
327+
328+ SECTION 4. AND BE IT FURTHER ENACTED, That: 29
329+
330+ (a) Section 1 of this Act shall be applicable to taxable years beginning after 30
331+December 31, 2021, but before January 1, 2025. 31
332+ 8 SENATE BILL 215
333+
334+
335+ (b) Section 3 of this Act shall be applicable to taxable years beginning after 1
336+December 31, 2024. 2
337+
338+ SECTION 5. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 3
339+effect July 1, 2024. 4
340+
341+ SECTION 6. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall take 5
342+effect July 1, 2025. 6
343+
344+ SECTION 7. AND BE IT FURTHER ENACTED, That, except as provided in Sections 7
345+5 and 6 of this Act, this Act shall take effect July 1, 2022. 8
346+
347+
348+
349+
350+Approved:
351+________________________________________________________________________________
352+ Governor.
353+________________________________________________________________________________
354+ President of the Senate.
355+________________________________________________________________________________
356+ Speaker of the House of Delegates.