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.
*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
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 28, 2022
CHAPTER ______
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; prohibiting the supervisor of a county 5
or a municipal corporation from accepting applications for the exemption after a 6
certain date; requiring the State Department of Assessments and Taxation to report 7
annually certain information to certain committees of the General Assembly; and 8
generally relating to tax exemptions an exemption from the personal property tax 9
for community solar energy generating systems. 10
BY adding to 11
Article – Local Government 12
Section 20–203 to be under the amended subtitle “Subtitle 2. Limitations on 13
Authority to Tax” 14
Annotated Code of Maryland 15
(2013 Volume and 2021 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Tax – Property 18
Section 7–237 19
Annotated Code of Maryland 20
(2019 Replacement Volume and 2021 Supplement) 21
2 SENATE BILL 264
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Local Government 3
Subtitle 2. Limitations on Authority to Tax [Advertising]. 4
20–203. 5
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 6
INDICATED. 7
(2) “BROWNFIELD” MEANS: 8
(I) A FORMER INDUSTRIAL OR COMMERCIAL SITE IDENTIFIED 9
BY FEDERAL OR STATE LAWS OR REGULAT IONS AS CONTAMINATED OR POLLUTED ; 10
(II) A CLOSED MUNICIPAL O R RUBBLE LANDFILL RE GULATED 11
UNDER A REFUSE DISPO SAL PERMIT BY THE MARYLAND DEPARTMENT OF THE 12
ENVIRONMENT ; OR 13
(III) MINED LANDS AS DEFIN ED IN COMAR 26.21.01.01. 14
(3) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS THE 15
MEANING STATED IN § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE. 16
(4) “ELECTRIC COMPANY ” HAS THE MEANING STAT ED IN § 1–101 OF 17
THE PUBLIC UTILITIES ARTICLE. 18
(B) NOTWITHSTANDING ANY OTHER LAW , A TAX IMPOSED BY A P OLITICAL 19
SUBDIVISION OF THE STATE ON THE SALE , USE, DELIVERY, DISTRIBUTION, 20
PRODUCTION , OR CONSUMPTION OF EN ERGY DOES NOT APPLY TO ENERGY 21
PRODUCED BY A COMMUN ITY SOLAR ENERGY GEN ERATING SYSTEM THAT : 22
(1) PROVIDES AT LEAST 50% OF THE ENERGY IT PRO DUCES TO 23
LOW– OR MODERATE –INCOME CUSTOMERS , AS DEFINED IN REGULA TIONS OF THE 24
PUBLIC SERVICE COMMISSION, AT A COST THAT IS AT LEAST 20% LESS THAN THE 25
AMOUNT CHARGED BY TH E ELECTRIC COMPANY T HAT SERVES THE AREA WHERE 26
THE COMMUNITY SOLAR ENERGY GENERATING SY STEM IS LOCATED ; AND 27
(2) IS INSTALLED ON A RO OFTOP, PARKING FACILITY CAN OPY, OR 28
BROWNFIELD . 29
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 30
as follows: 31 SENATE BILL 264 3
Article – Tax – Property 1
7–237. 2
(a) Except as provided in subsection (b) of this section, personal property is 3
exempt from property tax if the property is machinery or equipment used to generate: 4
(1) electricity or steam for sale; or 5
(2) hot or chilled water for sale that is used to heat or cool a building. 6
(b) Subject to § 7–514 of this title, AND EXCEPT AS PROVID ED IN SUBSECTION 7
(C) OF THIS SECTION , personal property that is machinery or equipment described in 8
subsection (a) of this section is subject to county or municipal corporation property tax on: 9
(1) 75% of its value for the taxable year beginning July 1, 2000; and 10
(2) 50% of its value for the taxable year beginning July 1, 2001 and each 11
subsequent taxable year. 12
(C) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HAVE THE 13
MEANINGS INDICATED . 14
(II) “BROWNFIELD” MEANS: 15
1. A FORMER INDUSTRIAL OR COMMERCIAL SITE 16
IDENTIFIED BY FEDERA L OR STATE LAWS OR REGULAT IONS AS CONTAMINATED OR 17
POLLUTED; OR 18
2. A CLOSED MUNICIPAL O R RUBBLE LANDFILL 19
REGULATED UNDER A REFUSE DISPOSAL PERM IT BY THE MARYLAND DEPARTMENT 20
OF THE ENVIRONMENT ; OR. 21
3. MINED LANDS AS DEFIN ED IN COMAR 26.21.01.01. 22
(III) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS 23
THE MEANING STATED I N § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE. 24
(IV) “ELECTRIC COMPANY ” HAS THE MEANING STAT ED IN § 25
1–101 OF THE PUBLIC UTILITIES ARTICLE. 26
(2) PERSONAL PROPERTY IS EXEMPT FROM COUNTY O R MUNICIPAL 27
CORPORATION PROPERTY TAX IF THE PROPERTY IS MACHINERY OR EQUI PMENT 28
THAT: 29 4 SENATE BILL 264
(I) AS DEFINED IN REGULA TION OF THE PUBLIC SERVICE 1
COMMISSION, IS PART OF A COMMUNI TY SOLAR ENERGY GENE RATING SYSTEM 2
THAT: 3
1. HAS A GENERATING CAP ACITY THAT DOES NOT 4
EXCEED 2 MEGAWATTS AS MEASURE D BY THE ALTERNATING CURRENT RATING OF 5
THE SYSTEM’S INVERTER; AND 6
2. PROVIDES AT LEAST 50% OF THE ENERGY IT 7
PRODUCES TO LOW – OR MODERATE –INCOME CUSTOMERS , AS DEFINED IN 8
REGULATIONS OF THE PUBLIC SERVICE COMMISSION, AT A COST THAT IS AT LEAST 9
20% LESS THAN THE AMOUNT CHARGED BY THE ELECT RIC COMPANY THAT SER VES 10
THE AREA WHERE THE C OMMUNITY SOLAR ENERG Y GENERATING SYSTEM IS 11
LOCATED; AND 12
(II) IS INSTALLED ON A RO OFTOP, PARKING FACILITY CAN OPY, 13
OR BROWNFIELD . 14
(3) PERSONAL PROPERTY THA T RECEIVES AN EXEMPT ION UNDER 15
THIS SUBSECTION IS E XEMPT FROM COUNTY OR MUNICIPAL CORPORATIO N 16
PROPERTY TAX FOR EAC H TAXABLE YEAR IN WH ICH THE PROPERTY CON TINUES TO 17
MEET THE REQUIREMENT S FOR THE EXEMPTION UNDER PARAGRAPH (2) OF THIS 18
SUBSECTION. 19
(4) THE SUPERVISOR OF A C OUNTY OR A MUNICIPAL CORPORATION 20
MAY NOT ACCEPT AN AP PLICATION FROM A PRO PERTY OWNER FOR THE EXEMPTION 21
UNDER THIS SUBSECTIO N AFTER DECEMBER 31, 2024. 22
(5) ON OR BEFORE OCTOBER 1 EACH YEAR, THE DEPARTMENT SHALL 23
REPORT TO THE SENATE BUDGET AND TAXATION COMMITTEE AND THE HOUSE 24
WAYS AND MEANS COMMITTEE, IN ACCORDANCE WITH § 2–1257 OF THE STATE 25
GOVERNMENT ARTICLE, ON THE NUMBER AND LO CATION OF PROJECTS T HAT, IN 26
THE IMMEDIATELY PREC EDING TAXABLE YEAR , HAVE RECEIVED THE EX EMPTION 27
UNDER THIS SUBSECTIO N. 28
SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be 29
applicable to all taxable years beginning after June 30, 2022. 30
SECTION 4. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall take 31
effect July 1, 2022. 32
SECTION 5. 2. AND BE IT FURTHER ENACTED, That , except as provided in 33
Section 4 of this Act, this Act shall take effect June 1, 2022, and shall be applicable to all 34
taxable years beginning after June 30, 2022. 35