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.
Italics indicate opposite chamber/conference committee amendments.
*sb0860*
SENATE BILL 860
Q1 (2lr2875)
ENROLLED BILL
— Budget and Taxation/Ways and Means —
Introduced by Senator King
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at _________________ _______ o’clock, ________M.
______________________________________________
President.
CHAPTER ______
AN ACT concerning 1
Property Tax – Solar Energy – School Construction and Property Tax – 2
Community Solar Energy Generating Systems – Agrivoltaics – Agrivoltaics 3
FOR the purpose of requiring a local school system constructing a school to consider 4
whether the school should be constructed with solar panels on the roof; exempting 5
certain community solar energy generating systems from personal property taxes; 6
requiring the Department of Assessments and Taxation to assess certain land used 7
by a community solar energy generating system in a certain manner; requiring the 8
governing body of a county or a municipal corporation to grant a tax credit against 9
the property tax imposed on certain real property on which a community solar energy 10
generating system is installed; establishing a tax credit against the State property 11
tax on certain real property on which a community solar energy generating system 12
is installed; requiring the Maryland Energy Administration to study the 13
effectiveness of this Act and report to the General Assembly on or before a certain 14 2 SENATE BILL 860
date; and generally relating to property taxes and community property taxes and 1
community solar energy generating systems generating systems. 2
BY repealing and reenacting, with amendments, 3
Article – Education 4
Section 5–312(c) 5
Annotated Code of Maryland 6
(2018 Replacement Volume and 2021 Supplement) 7
BY repealing and reenacting, with amendments, 8
Article – Tax – Property 9
Section 7–237 and 8–209(e) 10
Annotated Code of Maryland 11
(2019 Replacement Volume and 2021 Supplement) 12
BY adding to 13
Article – Tax – Property 14
Section 9–112 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 – Education 20
5–312. 21
(c) (1) [Except] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , AND 22
EXCEPT as provided in subsection (d) of this section, a new school that receives State public 23
school construction funds shall be constructed to be a high performance building. 24
(2) (I) FOR EACH SCHOOL CONST RUCTED BY A LOCAL SC HOOL 25
SYSTEM FROM JULY 1, 2024, THROUGH JUNE 30, 2033, INCLUSIVE, THE LOCAL 26
SCHOOL SYSTEM SHALL CONSIDER WHETHER THE SCHOOL SHOULD BE 27
CONSTRUCTED WITH SOL AR PANELS ON THE ROO F OF THE SCHOOL . 28
(II) IF, AFTER CONSIDERING IN STALLING SOLAR PANEL S 29
UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH , A LOCAL SCHOOL SYSTEM D ECIDES 30
NOT TO CONSTRUCT SOL AR PANELS ON THE ROO F OF THE SCHOOL , THE LOCAL 31
SCHOOL SYSTEM SHALL PROVIDE TO THE INTERAGENCY COMMISSION 32
INFORMATION REGARDIN G WHY THE SCHOOL SYS TEM CHOSE NOT TO CON STRUCT 33
SOLAR PANELS ON THE ROOF OF THE SCHOO L. 34
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 35
as follows: 36 SENATE BILL 860 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 HA VE THE 13
MEANINGS INDICATED . 14
(II) “AGRIVOLTAICS” MEANS THE SIMULTANEO US USE OF 15
AREAS OF LAND FOR BO TH SOLAR POWER GENER ATION AND AGR ICULTURE. 16
(III) “BROWNFIELD” MEANS: 17
1. A FORMER INDUSTRIAL OR COMMERCIAL SITE 18
IDENTIFIED BY FEDERA L OR STATE LAWS OR REGULAT IONS AS CONTAMINATED OR 19
POLLUTED; OR 20
2. A CLOSED MUNICIPAL O R RUBBLE LANDFILL 21
REGULATED UNDER A RE FUSE DISPOSAL PERMI T BY THE DEPARTMENT OF THE 22
ENVIRONMENT ; OR 23
3. MINED LANDS AS DEFIN ED IN COMAR 26.21.01.01. 24
(IV) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS 25
THE MEANING STATED I N § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE. 26
(V) “ELECTRIC COMPANY ” HAS THE MEANING STAT ED IN § 27
1–101 OF THE PUBLIC UTILITIES ARTICLE. 28
4 SENATE BILL 860
(2) THIS SUBSECTION APPLI ES TO THROUGH THE LIFE CYC LE OF A 1
COMMUNITY SOLAR ENER GY GENERATING SYSTEM THAT: 2
(I) IS PLACED IN SERVICE AFTER JUNE 30, 2022; AND 3
(II) HAS BEEN APPROVED ON OR BEFORE DECEMBER 31, 2025, 4
BY THE PUBLIC SERVICE COMMISSION UNDER § 7–306.2 OF THE PUBLIC UTILITIES 5
ARTICLE THROUGH THE LIFE CYC LE OF A SYSTEM. 6
(3) PERSONAL PROPERTY IS EXEMPT FROM COUNTY O R MUNICIPAL 7
CORPORATION PROPERTY TAX IF THE PROPERTY IS MACHI NERY OR EQUIPMENT 8
THAT IS PART OF A CO MMUNITY SOLAR ENERGY GENERATING SYSTEM TH AT: 9
(I) PROVIDES AT LEAST 50% OF THE ENERGY IT PRO DUCES TO 10
LOW– OR MODERATE –INCOME CUSTOMERS AT A COST THAT IS AT LE AST 20% LESS 11
THAN THE AMOUNT CHAR GED BY THE ELECTRIC COMP ANY THAT SERVES THE AREA 12
WHERE THE COMMUNITY SOLAR ENERGY GENERAT ING SYSTEM IS LOCATE D; AND 13
(I) (II) 1. IS USED FOR AGRIVOLT AICS; OR 14
(II) 2. IS INSTALLED ON A RO OFTOP, BROWNFIELD , PARKING 15
FACILITY CANOPY , LANDFILL, OR CLEAN FILL. 16
8–209. 17
(e) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HA VE THE 18
MEANINGS INDICATED . 19
(II) “AGRIVOLTAICS” HAS THE MEANING STAT ED IN § 7–237 OF 20
THIS ARTICLE. 21
(III) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS 22
THE MEANING STATED I N § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE. 23
(2) [The] EXCEPT AS PROVIDED IN PARAGRAPH (4) OF THIS 24
SUBSECTION, THE Department shall establish in regulations criteria to determine if land 25
that appears to be actively used for farm or agricultural purposes: 26
(i) is actually used for farm or agricultural purposes; and 27
(ii) qualifies for assessment under this section. 28
[(2)] (3) The criteria shall include: 29
(i) the zoning of the land; 30 SENATE BILL 860 5
(ii) the present and past use of the land including land under the Soil 1
Bank Program of the United States; 2
(iii) the productivity of the land, including timberlands and 3
reforested lands; and 4
(iv) the gross income that is derived from the agricultural activity. 5
(4) (I) THIS PARAGRAPH APPLIE S TO THROUGH THE L IFE CYCLE 6
OF A COMMUNITY SOLAR EN ERGY GENERATING SYST EM THAT: 7
1. IS PLACED IN SERVICE AFTER JUNE 30, 2022; AND 8
2. HAS BEEN APPROVED ON OR BEFORE DECEMBER 31, 9
2025, AS A COMMUNITY SOLAR ENERGY GENERATING SY STEM BY THE PUBLIC 10
SERVICE COMMISSION UNDER § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE 11
THROUGH THE LIFE CYC LE OF A SYSTEM. 12
(II) THE DEPARTMENT SHALL ASSE SS AND QUALIFY LAND THAT 13
IS USED BY A COMMUNI TY SOLAR ENERGY GENE RATING SYSTEM FOR AG RIVOLTAICS 14
AS LAND THAT IS ACTI VELY USED FOR FARM O R AGRICULTURAL PURPOSE S. 15
9–112. 16
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 17
INDICATED. 18
(2) “BROWNFIELD” HAS THE MEANING STAT ED IN § 7–237 OF THIS 19
ARTICLE. 20
(3) “QUALIFIED PROPERTY ” MEANS A BROWNFIELD , LANDFILL, OR 21
CLEAN FILL ON WHIC H A COMMUNITY SOLAR ENERGY GENERATING SY STEM, AS 22
DEFINED UNDER § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE, IS INSTALLED. 23
(B) (1) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY AND THE 24
GOVERNING BODY OF EA CH COUNTY AND OF EAC H MUNICIPAL CORPORAT ION SHALL 25
GRANT A PROPERTY TAX CREDIT UNDER THIS SE CTION AGAINST THE CO UNTY OR 26
MUNICIPAL CORPORATIO N PROPERTY TAX IMPOS ED ON A QUALIFIED PR OPERTY. 27
(2) IN ADDITION TO THE PR OPERTY TAX CREDIT PR OVIDED UNDER 28
PARAGRAPH (1) OF THIS SUBSECTION , THERE IS A CREDIT AG AINST THE STATE 29
PROPERTY TAX THAT IS IMPOSED ON QUALIFIED PROPERTY. 30
6 SENATE BILL 860
(C) THE AMOUNT OF THE PRO PERTY TAX CREDIT ALL OWED UNDER THIS 1
SECTION SHALL EQUAL 50% OF THE STATE, COUNTY, OR MUNICIPAL CORPORA TION 2
PROPERTY TAX THAT IS IMPOSED ON THE ELIGI BLE ASSESSMENT OF QUALIFIED 3
PROPERTY. 4
(D) THE PROPERTY TAX CRED IT UNDER THIS SECTIO N MAY BE GRANTED 5
ONLY FOR QUALIFIED PROPER TY ON WHICH THE INST ALLATION OF A THROUGH THE 6
LIFE CYCLE OF A COMMUNITY SOLAR ENER GY GENERATING SYSTEM IF THE SYSTEM 7
INSTALLED ON THE QUA LIFIED PROPERTY: 8
(1) IS PLACED IN SERVICE AFTER JUNE 30, 2022; AND 9
(2) HAS BEEN APPROVED BY THE PUBLIC SERVICE COMMISSION 10
UNDER § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE ON OR BEFORE DECEMBER 11
31, 2025, THROUGH THE LIFE CYC LE OF THE SYSTEM . 12
(E) ON OR BEFORE JUNE 15 EACH YEAR, THE DEPARTMENT SHALL SUBM IT 13
TO THE PUBLIC SERVICE COMMISSION A LIST THA T INCLUDES: 14
(1) THE LOCATION OF EACH QUALIFIED PROPERTY ; 15
(2) THE AMOUNT OF THE BA SE YEAR VALUE FOR EA CH QUALIFIED 16
PROPERTY; AND 17
(3) THE AMOUNT OF THE PR OPERTY TAX ASSESSED AGAIN ST EACH 18
QUALIFIED PROPERTY . 19
SECTION 2. 3. 2. AND BE IT FURTHER ENACTED, That: 20
(a) The Maryland Energy Administration shall study the effectiveness of the tax 21
incentives established in Section 2 of this Act on encouraging community solar energy 22
generating systems to be installed on rooftops, brownfields, landfills, and clean fills and 23
used for agrivoltaics. 24
(b) On or before December 31, 2024, the Maryland Energy Administration shall 25
report to the General Assembly, in accordance with § 2–1257 of the State Government 26
Article, on its findings and recommendations based on the study conducted under this 27
section. 28
SECTION 4. 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 3. 5. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 31
June 1, 2022, and shall be applicable to all taxable years beginning after June 30, 2022, and 32
shall be applicable to all taxable years beginning after June 30, 2022. 33