EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0264*
SENATE BILL 264
Q1, Q7 2lr1398
CF HB 76
By: Senators Elfreth, McCray, Hershey, Kramer, Augustine, and Feldman
Introduced and read first time: January 14, 2022
Assigned to: Budget and Taxation
A BILL ENTITLED
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; and generally relating to tax 5
exemptions for community solar energy generating systems. 6
BY adding to 7
Article – Local Government 8
Section 20–203 to be under the amended subtitle “Subtitle 2. Limitations on 9
Authority to Tax” 10
Annotated Code of Maryland 11
(2013 Volume and 2021 Supplement) 12
BY repealing and reenacting, with amendments, 13
Article – Tax – Property 14
Section 7–237 15
Annotated Code of Maryland 16
(2019 Replacement Volume and 2021 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Local Government 20
Subtitle 2. Limitations on Authority to Tax [Advertising]. 21
20–203. 22
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 23 2 SENATE BILL 264
INDICATED. 1
(2) “BROWNFIELD” MEANS: 2
(I) A FORMER INDUSTRIAL OR COMMERCIAL SITE I DENTIFIED 3
BY FEDERAL OR STATE LAWS OR REGULAT IONS AS CONTAMINATED OR POLLUTED ; 4
(II) A CLOSED MUNICIPAL O R RUBBLE LANDFILL RE GULATED 5
UNDER A REFUSE DISPO SAL PERMIT BY THE MARYLAND DEPARTMENT OF THE 6
ENVIRONMENT ; OR 7
(III) MINED LANDS AS DEFIN ED IN COMAR 26.21.01.01. 8
(3) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS THE 9
MEANING STAT ED IN § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE. 10
(4) “ELECTRIC COMPANY ” HAS THE MEANING STAT ED IN § 1–101 OF 11
THE PUBLIC UTILITIES ARTICLE. 12
(B) NOTWITHSTANDING ANY O THER LAW, A TAX IMPOSED BY A P OLITICAL 13
SUBDIVISION OF THE STATE ON THE SALE , USE, DELIVERY, DISTRIBUTION, 14
PRODUCTION , OR CONSUMPTION OF EN ERGY DOES NOT APPLY TO ENERGY 15
PRODUCED BY A COMMUN ITY SOLAR ENERGY GEN ERATING SYSTEM THAT : 16
(1) PROVIDES AT LEAST 50% OF THE ENERGY IT PRO DUCES TO 17
LOW– OR MODERATE –INCOME CUSTOMERS , AS DEFINED IN REGULA TIONS OF THE 18
PUBLIC SERVICE COMMISSION, AT A COST THAT IS AT LEAST 20% LESS THAN THE 19
AMOUNT CHARGED BY TH E ELECTRIC COMPANY T HAT SERVES THE AREA WHERE 20
THE COMMUNITY SOLAR ENERGY GENERATING SY STEM IS LOCATED ; AND 21
(2) IS INSTALLED ON A RO OFTOP, PARKING FA CILITY CANOPY , OR 22
BROWNFIELD . 23
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 24
as follows: 25
Article – Tax – Property 26
7–237. 27
(a) Except as provided in subsection (b) of this section, personal property is 28
exempt from property tax if the property is machinery or equipment used to generate: 29
(1) electricity or steam for sale; or 30 SENATE BILL 264 3
(2) hot or chilled water for sale that is used to heat or cool a building. 1
(b) Subject to § 7–514 of this title, AND EXCEPT AS PROVID ED IN SUBSECTION 2
(C) OF THIS SECTION , personal property that is machinery or equipment described in 3
subsection (a) of this section is subject to county or municipal corporation property tax on: 4
(1) 75% of its value for the taxable year beginning July 1, 2000; and 5
(2) 50% of its value for the taxable year beginning July 1, 2001 and each 6
subsequent taxable year. 7
(C) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HA VE THE 8
MEANINGS INDICATED . 9
(II) “BROWNFIELD” MEANS: 10
1. A FORMER INDUSTRIAL OR C OMMERCIAL SITE 11
IDENTIFIED BY FEDERA L OR STATE LAWS OR REGULAT IONS AS CONTAMINATED OR 12
POLLUTED; 13
2. A CLOSED MUNICIPAL O R RUBBLE LANDFILL 14
REGULATED UNDER A RE FUSE DISPOSAL PERMIT BY THE MARYLAND DEPARTMENT 15
OF THE ENVIRONMENT ; OR 16
3. MINED LANDS AS DEFIN ED IN COMAR 26.21.01.01. 17
(III) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS 18
THE MEANING STATED I N § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE. 19
(IV) “ELECTRIC COMPANY ” HAS THE MEANING STAT ED IN § 20
1–101 OF THE PUBLIC UTILITIES ARTICLE. 21
(2) PERSONAL PROPERTY IS EXEMPT FROM COUNTY O R MUNICIPAL 22
CORPORATION PROPERTY TAX IF THE PROPERTY IS MACHINERY OR EQUI PMENT 23
THAT: 24
(I) IS PART OF A COMMUNI TY SOLAR ENERGY GENE RATING 25
SYSTEM THAT PROVIDES AT LEAST 50% OF THE ENERGY IT PRO DUCES TO LOW – OR 26
MODERATE–INCOME CUSTOMERS , AS DEFINED IN REGULA TIONS OF THE PUBLIC 27
SERVICE COMMISSION, AT A COST THAT IS AT LEAST 20% LESS THAN THE AMOUNT 28
CHARGED BY THE ELECT RIC COMPANY THAT SER VES THE AREA WHERE T HE 29
COMMUNITY SOLAR ENER GY GENERATING SYS TEM IS LOCATED ; AND 30
4 SENATE BILL 264
(II) IS INSTALLED ON A RO OFTOP, PARKING FACILITY CAN OPY, 1
OR BROWNFIELD . 2
SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be 3
applicable to all taxable years beginning after June 30, 2022. 4
SECTION 4. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall take 5
effect July 1, 2022. 6
SECTION 5. AND BE IT FURTHER ENACTED, That, except as provided in Section 7
4 of this Act, this Act shall take effect June 1, 2022. 8