EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0860*
SENATE BILL 860
Q1 2lr2875
CF 2lr2474
By: Senator King
Introduced and read first time: February 7, 2022
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Property Tax – Community Solar Energy Generating Systems – Agrivoltaics 2
FOR the purpose of exempting certain community solar energy generating systems from 3
personal property taxes; requiring the Department of Assessments and Taxation to 4
assess certain land used by a community solar energy generating system in a certain 5
manner; requiring the governing body of a county or a municipal corporation to grant 6
a tax credit against the property tax imposed on certain real property on which a 7
community solar energy generating system is installed; establishing a tax credit 8
against the State property tax on certain real property on which a community solar 9
energy generating system is installed; requiring the Maryland Energy 10
Administration to study the effectiveness of this Act and report to the General 11
Assembly on or before a certain date; and generally relating to property taxes and 12
community solar energy generating systems. 13
BY repealing and reenacting, with amendments, 14
Article – Tax – Property 15
Section 7–237 and 8–209(e) 16
Annotated Code of Maryland 17
(2019 Replacement Volume and 2021 Supplement) 18
BY adding to 19
Article – Tax – Property 20
Section 9–112 21
Annotated Code of Maryland 22
(2019 Replacement Volume and 2021 Supplement) 23
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 24
That the Laws of Maryland read as follows: 25
Article – Tax – Property 26
2 SENATE BILL 860
7–237. 1
(a) Except as provided in subsection (b) of this section, personal property is 2
exempt from property tax if the property is machinery or equipment used to generate: 3
(1) electricity or steam for sale; or 4
(2) hot or chilled water for sale that is used to heat or cool a building. 5
(b) Subject to § 7–514 of this title, AND EXCEPT AS PROVID ED IN SUBSECTION 6
(C) OF THIS SECTION , personal property that is machinery or equipment described in 7
subsection (a) of this section is subject to county or municipal corporation property tax on: 8
(1) 75% of its value for the taxable year beginning July 1, 2000; and 9
(2) 50% of its value for the taxable year beginning July 1, 2001 and each 10
subsequent taxable year. 11
(C) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HA VE THE 12
MEANINGS INDICATED . 13
(II) “AGRIVOLTAICS” MEANS THE SIMULTANEO US USE OF 14
AREAS OF LAND FOR BO TH SOLAR POWER GENER ATION AND AGRICULTURE . 15
(III) “BROWNFIELD” MEANS: 16
1. A FORMER INDUSTRIAL OR COMMERCIAL SITE 17
IDENTIFIED BY FEDERA L OR STATE LAWS OR REGULAT IONS AS CONTAMINATED OR 18
POLLUTED; 19
2. A CLOSED MUNICIPAL O R RUBBLE LANDFILL 20
REGULATED UNDER A RE FUSE DISPOSAL PERMIT BY THE DEPARTMENT OF THE 21
ENVIRONMENT ; OR 22
3. MINED LANDS AS DEFIN ED IN COMAR 26.21.01.01. 23
(IV) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS 24
THE MEANING STATED I N § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE. 25
(2) THIS SUBSECTION APPLI ES TO A COMMUNITY SOLAR ENERGY 26
GENERATING SYSTEM TH AT HAS BEEN APPROVED ON OR BEFORE DECEMBER 31, 27
2025, BY THE PUBLIC SERVICE COMMISSION UNDER § 7–306.2 OF THE PUBLIC 28
UTILITIES ARTICLE THROUGH THE L IFE CYCLE OF A SYSTE M. 29
SENATE BILL 860 3
(3) PERSONAL PROPERTY IS EXEMPT FROM COUNTY OR MUNICIPAL 1
CORPORATION PROPERTY TAX IF THE PROPERTY IS MACHINERY OR EQUI PMENT 2
THAT IS PART OF A CO MMUNITY SOLAR ENERGY GENERATING SYSTEM TH AT: 3
(I) IS USED FOR AGRIVOLT AICS; OR 4
(II) IS INSTALLED ON A RO OFTOP, BROWNFIELD , LANDFILL, OR 5
CLEAN FILL. 6
8–209. 7
(e) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HA VE THE 8
MEANINGS INDICATED . 9
(II) “AGRIVOLTAICS” HAS THE MEANING STAT ED IN § 7–237 OF 10
THIS ARTICLE. 11
(III) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS 12
THE MEANING STATED I N § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE. 13
(2) [The] EXCEPT AS PROVIDED IN PARAGRAPH (4) OF THIS 14
SUBSECTION, THE Department shall establish in regulations criteria to determine if land 15
that appears to be actively used for farm or agricultural purposes: 16
(i) is actually used for farm or agricultural purposes; and 17
(ii) qualifies for assessment under this section. 18
[(2)] (3) The criteria shall include: 19
(i) the zoning of the land; 20
(ii) the present and past use of the land including land under the Soil 21
Bank Program of the United States; 22
(iii) the productivity of the land, including timberlands and 23
reforested lands; and 24
(iv) the gross income that is derived from the agricultural activity. 25
(4) (I) THIS PARAGRAPH APPLIE S TO A COMMUNITY SOLAR 26
ENERGY GENERATING SY STEM THAT HAS BEEN A PPROVED ON OR BEFORE 27
DECEMBER 31, 2025, AS A COMMUNITY SOLAR ENERGY GENERATING SY STEM BY 28
THE PUBLIC SERVICE COMMISSION UNDER § 7–306.2 OF THE PUBLIC UTILITIES 29
ARTICLE THROUGH THE L IFE CYCLE OF A SYSTE M. 30 4 SENATE BILL 860
(II) THE DEPARTMENT SHALL ASSE SS AND QUALIFY LAND THAT 1
IS USED BY A COMMUNI TY SOLAR ENERGY GENE RATING SYSTEM FOR AG RIVOLTAICS 2
AS LAND THAT IS ACTI VELY USED FOR FARM O R AGRICULTURAL PURPO SES. 3
9–112. 4
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEAN INGS 5
INDICATED. 6
(2) “BROWNFIELD” HAS THE MEANING STAT ED IN § 7–237 OF THIS 7
ARTICLE. 8
(3) “QUALIFIED PROPERTY ” MEANS A BROWNFIELD , LANDFILL, OR 9
CLEAN FILL ON WHICH A COMMUNITY SOLAR EN ERGY GENERATING SYST EM, AS 10
DEFINED UNDER § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE, IS INSTALLED. 11
(B) (1) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY AND THE 12
GOVERNING BODY OF EA CH COUNTY AND OF EAC H MUNICIPAL CORPORAT ION SHALL 13
GRANT A PROPERTY TAX CREDIT UNDER THIS SE CTION AGAINST THE CO UNTY OR 14
MUNICIPAL CORPORATIO N PROPERTY TAX IMPOSED O N A QUALIFIED PROPER TY. 15
(2) IN ADDITION TO THE PR OPERTY TAX CREDIT PR OVIDED UNDER 16
PARAGRAPH (1) OF THIS SUBSECTION , THERE IS A CREDIT AG AINST THE STATE 17
PROPERTY TAX THAT IS IMPOSED ON QUALIFIED PROPERTY. 18
(C) THE AMOUNT OF THE PRO PERTY TAX CREDIT ALLOW ED UNDER THIS 19
SECTION SHALL EQUAL 50% OF THE STATE, COUNTY, OR MUNICIPAL CORPORA TION 20
PROPERTY TAX THAT IS IMPOSED ON THE ELIGI BLE ASSESSMENT OF QU ALIFIED 21
PROPERTY. 22
(D) THE PROPERTY TAX CRED IT UNDER THIS SECTIO N MAY BE GRANTED 23
ONLY FOR QUALIFIED PROPERTY O N WHICH THE INSTALLA TION OF A COMMUNITY 24
SOLAR ENERGY GENERAT ING SYSTEM HAS BEEN APPROVED BY THE PUBLIC 25
SERVICE COMMISSION UNDER § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE ON OR 26
BEFORE DECEMBER 31, 2025, THROUGH THE LIFE CYC LE OF THE SYSTEM. 27
(E) ON OR BEFORE JUNE 15 EACH YEAR, THE DEPARTMENT SHALL SUBM IT 28
TO THE PUBLIC SERVICE COMMISSION A LIST THA T INCLUDES: 29
(1) THE LOCATION OF EACH QUALIFIED PROPERTY ; 30
(2) THE AMOUNT OF THE BA SE YEAR VALUE FOR EA CH QUALIFIED 31 SENATE BILL 860 5
PROPERTY; AND 1
(3) THE AMOUNT OF THE PR OPERTY TAX ASSESSED AGAINST EACH 2
QUALIFIED PROPERTY . 3
SECTION 2. AND BE IT FURTHER ENACTED, That: 4
(a) The Maryland Energy Administration shall study the effectiveness of the tax 5
incentives established in this Act on encouraging community solar energy generating 6
systems to be installed on rooftops, brownfields, landfills, and clean fills and used for 7
agrivoltaics. 8
(b) On or before December 31, 2024, the Maryland Energy Administration shall 9
report to the General Assembly, in accordance with § 2–1257 of the State Government 10
Article, on its findings and recommendations based on the study conducted under this 11
section. 12
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect June 13
1, 2022, and shall be applicable to all taxable years beginning after June 30, 2022. 14