EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0267*
SENATE BILL 267
Q3 2lr1986
CF HB 85
By: Senator Benson
Introduced and read first time: January 17, 2022
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Income Tax – Healthy Indoor Air Quality Tax Credit 2
FOR the purpose of allowing certain persons to claim a credit against the State income tax 3
for certain costs incurred during the taxable year to purchase and install certain 4
indoor air quality equipment in certain residential or commercial properties; 5
requiring the Comptroller, in consultation with the Maryland Energy 6
Administration, to publish on the Comptroller’s website a list of approved indoor air 7
quality equipment on or before a certain date each year; prohibiting the Comptroller 8
from issuing eligibility certificates in a taxable year during which a certain state of 9
emergency is declared; and generally relating to an income tax credit for costs 10
incurred to purchase and install indoor air quality equipment. 11
BY adding to 12
Article – Tax – General 13
Section 10–754 14
Annotated Code of Maryland 15
(2016 Replacement Volume and 2021 Supplement) 16
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18
Article – Tax – General 19
10–754. 20
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 21
INDICATED. 22
(2) “ADMINISTRATION ” MEANS THE MARYLAND ENERGY 23
ADMINISTRATION . 24 2 SENATE BILL 267
(3) “INDOOR AIR QUALITY EQ UIPMENT” MEANS EQUIPMENT I N A 1
HOME, RENTAL DWELLING UNIT , OR COMMERCIAL BUILDI NG THAT: 2
(I) IS INSTALLED BY A LI CENSED CONTRACTOR ; 3
(II) IMPROVES INDOOR AIR QUALITY, INCLUDING ENHANCED 4
VENTILATION AND FILT RATION SYSTEMS , BIPOLAR IONIZATION T ECHNOLOGIES , OR 5
ULTRAVIOLET LIGHTIN G; AND 6
(III) IS APPROVED BY THE COMPTROLLER UNDER THI S SECTION 7
AS INDOOR AIR QUALIT Y EQUIPMENT. 8
(4) “LICENSED CONTRACTOR ” MEANS AN INDIVIDUAL LICENSED 9
UNDER TITLE 9A, SUBTITLE 3 OF THE BUSINESS REGULATION ARTICLE TO 10
PROVIDE HEATING , VENTILATION, AIR–CONDITIONING , AND REFRIGERATION 11
SERVICES IN THE STATE. 12
(5) “QUALIFIED EXPENSES ” MEANS COSTS INCURRED BY A 13
QUALIFIED TAXPAYER T O PURCHASE AND INSTA LL INDOOR AIR QUALIT Y 14
EQUIPMENT FOR USE : 15
(I) BY AN INDIVIDUAL HOM EOWNER OR A LESSEE O F A RENTAL 16
DWELLING UNIT ; OR 17
(II) BY A SMALL BUSINESS IN A COMMERCIAL BUIL DING. 18
(6) “QUALIFIED TAXPAYER ” MEANS: 19
(I) AN INDIVIDUAL HOMEOW NER; 20
(II) AN OWNER OF A RENTAL DWELLING UNIT ; OR 21
(III) A SMALL BUSINESS . 22
(7) “RENTAL DWELLING UNIT ” MEANS A DWELLING UNIT IN A 23
MULTIFAMILY RESIDENT IAL BUILDING WITH FE WER THAN FIVE DWELLI NG UNITS. 24
(8) “SMALL BUSINESS ” MEANS AN INDIVIDUAL , A PARTNERSHIP , A 25
LIMITED PARTNERSHIP , A LIMITED LIABILITY PARTNERSHIP , A LIMITED LIABILITY 26
COMPANY, OR A CORPORATION THA T EMPLOYS 50 OR FEWER FULL –TIME 27
EMPLOYEES. 28
SENATE BILL 267 3
(B) SUBJECT TO THE LIMITA TIONS OF THIS SECTIO N, A QUALIFIED 1
TAXPAYER MAY CLAIM A CREDIT AGAINST THE STATE INCOME TAX IN A N AMOUNT 2
EQUAL TO 50% OF THE QUALIFIED EXP ENSES INCURRED DURIN G THE TAXABLE 3
YEAR. 4
(C) (1) ON OR BEFORE SEPTEMBER 30, 2022, AND SEPTEMBER 30 EACH 5
YEAR THEREAFTER , THE COMPTROLLER , IN CONSULTATION WITH THE 6
ADMINISTRATION , SHALL PUBLISH ON THE COMPTROLLER ’S WEBSITE A LIST OF 7
APPROVED INDOOR AIR QUALITY EQUIPMENT BA SED ON INDUSTRY GUID ELINES 8
AND BEST PRACTICES. 9
(2) IN ORDER TO CLAIM THE CREDIT UNDER THIS SE CTION, A 10
QUALIFIED TAXPAYER M UST OBTAIN FROM THE COMPTROLLER AN ELIGIB ILITY 11
CERTIFICATE. 12
(3) (I) THE COMPTROLLER MAY NOT I SSUE AN ELIGIBILITY 13
CERTIFICATE IN A TAX ABLE YEAR DURING WHI CH A STATE OF EMERGENCY IS 14
DECLARED BY THE GOVERNOR. 15
(II) IF THE ISSUANCE OF EL IGIBILITY CERTIFICAT ES IS 16
SUSPENDED DUE TO A S TATE OF EMERGENCY UN DER THIS PARAGRAPH , A 17
QUALIFIED TAXPAYER T HAT OTHERWISE QUALIF IES FOR THE CREDIT I N THAT 18
TAXABLE YEAR MAY OBT AIN AN ELIGIBILITY CERTIFIC ATE FROM THE 19
COMPTROLLER IN THE IM MEDIATELY FOLLOWING TAXABLE YEAR . 20
(4) THE ELIGIBILITY CERTI FICATE UNDER THIS SU BSECTION SHALL : 21
(I) CONSIST OF A CERTIFI CATION BY THE COMPTROLLER THAT 22
THE EQUIPMENT FOR WH ICH THE QUALIFIED TA XPAYER IS CLAIMING THE C REDIT: 23
1. IS APPROVED AS INDOO R AIR QUALITY EQUIPM ENT BY 24
THE COMPTROLLER UNDER PAR AGRAPH (1) OF THIS SUBSECTION ; AND 25
2. WAS INSTALLED BY A L ICENSED CONTRACTOR ; AND 26
(II) BE IN THE FORM AND C ONTAIN ANY OTHER INF ORMATION 27
THAT THE COMPTROLLER REQUIRES . 28
(5) THE QUALIFIED TAXPAYE R SHALL FILE THE ELI GIBILITY 29
CERTIFICATE WITH THE QUALIFIED TAXPAYER ’S INCOME TAX RETURN . 30
(D) (1) FOR ANY TAXABLE YEAR , THE CREDIT ALLOWED U NDER THIS 31
SECTION MAY NOT EXCE ED: 32 4 SENATE BILL 267
(I) FOR A QUALIFIED T AXPAYER OTHER THAN A SMALL 1
BUSINESS, $1,000; OR 2
(II) FOR A SMALL BUSINESS , $2,000. 3
(2) IF THE CREDIT ALLOWED UNDER THIS SECTION I N ANY TAXABLE 4
YEAR EXCEEDS THE STATE INCOME TAX FOR THAT TAXABLE YEAR , ANY UNUSED 5
AMOUNT OF THE CREDIT MAY NOT BE CARRIE D OVER TO ANY OTHER TAXABLE YEAR . 6
(E) THE COMPTROLLER , IN CONSULTATION WITH THE ADMINISTRATION , 7
MAY ADOPT REGULATION S TO IMPLEMENT THE P ROVISIONS OF THIS SE CTION. 8
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 9
1, 2022, and shall be applicable to all taxable years beginning after December 31, 2021. 10