LAWRENCE J. HOGAN, JR., Governor Ch. 659
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Chapter 659
(Senate Bill 860)
AN ACT concerning
Property Tax – Solar Energy – School Construction and Property Tax –
Community Solar Energy Generating Systems – Agrivoltaics – Agrivoltaics
FOR the purpose of requiring a local school system constructing a school to consider
whether the school should be constructed with solar panels on the roof; exempting
certain community solar energy generating systems from personal property taxes;
requiring the Department of Assessments and Taxation to assess certain land used
by a community solar energy generating system in a certain manner; requiring the
governing body of a county or a municipal corporation to grant a tax credit against
the property tax imposed on certain real property on which a community solar energy
generating system is installed; establishing a tax credit against the State property
tax on certain real property on which a community solar energy generating system
is installed; requiring the Maryland Energy Administration to study the
effectiveness of this Act and report to the General Assembly on or before a certain
date; and generally relating to property taxes and community property taxes and
community solar energy generating systems generating systems.
BY repealing and reenacting, with amendments,
Article – Education
Section 5–312(c)
Annotated Code of Maryland
(2018 Replacement Volume and 2021 Supplement)
BY repealing and reenacting, with amendments,
Article – Tax – Property
Section 7–237 and 8–209(e)
Annotated Code of Maryland
(2019 Replacement Volume and 2021 Supplement)
BY adding to
Article – Tax – Property
Section 9–112
Annotated Code of Maryland
(2019 Replacement Volume and 2021 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Education
5–312. Ch. 659 2022 LAWS OF MARYLAND
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(c) (1) [Except] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , AND
EXCEPT as provided in subsection (d) of this section, a new school that receives State public
school construction funds shall be constructed to be a high performance building.
(2) (I) FOR EACH SCHOOL CONST RUCTED BY A LOCAL SC HOOL
SYSTEM FROM JULY 1, 2024, THROUGH JUNE 30, 2033, INCLUSIVE, THE LOCAL
SCHOOL SYSTEM SHALL CONSIDER WHETHER THE SCHOOL SHOULD BE
CONSTRUCTED WITH SOL AR PANELS ON THE ROO F OF THE SCHOOL .
(II) IF, AFTER CONSIDERING IN STALLING SOLAR PANEL S
UNDER SUBPARAGR APH (I) OF THIS PARAGRAPH , A LOCAL SCHOOL SYSTE M DECIDES
NOT TO CONSTRUCT SOL AR PANELS ON THE ROO F OF THE SCHOOL , THE LOCAL
SCHOOL SYSTEM SHALL PROVIDE TO THE INTERAGENCY COMMISSION
INFORMATION REGARDIN G WHY THE SCHOOL SYS TEM CHOSE NOT TO CON STRUCT
SOLAR PANELS ON THE ROOF OF THE SCHOOL.
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
Article – Tax – Property
7–237.
(a) Except as provided in subsection (b) of this section, personal property is
exempt from property tax if the property is machinery or equipment used to generate:
(1) electricity or steam for sale; or
(2) hot or chilled water for sale that is used to heat or cool a building.
(b) Subject to § 7–514 of this title, AND EXCEPT AS PROVID ED IN SUBSECTION
(C) OF THIS SECTION , personal property that is machinery or equipment described in
subsection (a) of this section is subject to county or municipal corporation property tax on:
(1) 75% of its value for the taxable year beginning July 1, 2000; and
(2) 50% of its value for the taxable year beginning July 1, 2001 and each
subsequent taxable year.
(C) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HA VE THE
MEANINGS INDICATED .
(II) “AGRIVOLTAICS” MEANS THE SIMULTANEO US USE OF
AREAS OF LAND FOR BO TH SOLAR POWER GENERATI ON AND AGRICULTURE . LAWRENCE J. HOGAN, JR., Governor Ch. 659
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(III) “BROWNFIELD ” MEANS:
1. A FORMER INDUSTRIAL OR COMMERCIAL SITE
IDENTIFIED BY FEDERA L OR STATE LAWS OR REGULAT IONS AS CONTAMINATED OR
POLLUTED; OR
2. A CLOSED MUNICIPAL O R RUBBLE LANDFILL
REGULATED UNDER A REFUSE DISPO SAL PERMIT BY THE DEPARTMENT OF THE
ENVIRONMENT ; OR
3. MINED LANDS AS DEFIN ED IN COMAR 26.21.01.01.
(IV) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS
THE MEANING STATED I N § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE.
(V) “ELECTRIC COMPANY ” HAS THE MEANING STAT ED IN §
1–101 OF THE PUBLIC UTILITIES ARTICLE.
(2) THIS SUBSECTION APPLI ES TO THROUGH THE LIFE CYC LE OF A
COMMUNITY SOLAR ENER GY GENERATING SYSTEM THAT:
(I) IS PLACED IN SERVICE AFTER JUNE 30, 2022; AND
(II) HAS BEEN APPROVED ON OR BEFORE DECEMBER 31, 2025,
BY THE PUBLIC SERVICE COMMISSION UNDER § 7–306.2 OF THE PUBLIC UTILITIES
ARTICLE THROUGH THE LIFE CYC LE OF A SYSTEM.
(3) PERSONAL PROPERTY IS EXEMPT FROM COUNTY O R MUNICIPAL
CORPORATION PROPERTY TAX IF THE PROPERTY IS M ACHINERY OR EQUIPMEN T
THAT IS PART OF A CO MMUNITY SOLAR ENERGY GENERATING SYSTEM TH AT:
(I) PROVIDES AT LEAST 50% OF THE ENERGY IT PRO DUCES TO
LOW– OR MODERATE –INCOME CUSTOMERS AT A COST THAT IS AT LE AST 20% LESS
THAN THE AMOUNT CHARGED BY THE ELECT RIC COMPANY THAT SER VES THE AREA
WHERE THE COMMUNITY SOLAR ENERGY GENERAT ING SYSTEM IS LOCATE D; AND
(I) (II) 1. IS USED FOR AGRIVOLT AICS; OR
(II) 2. IS INSTALLED ON A RO OFTOP, BROWNFIELD , PARKING
FACILITY CANOPY , LANDFILL, OR CLEAN FILL.
8–209.
Ch. 659 2022 LAWS OF MARYLAND
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(e) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HA VE THE
MEANINGS INDICATED .
(II) “AGRIVOLTAICS” HAS THE MEANING STAT ED IN § 7–237 OF
THIS ARTICLE.
(III) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS
THE MEANING STATED I N § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE.
(2) [The] EXCEPT AS PROVIDED IN PARAGRAPH (4) OF THIS
SUBSECTION, THE Department shall establish in regulations criteria to determine if land
that appears to be actively used for farm or agricultural purposes:
(i) is actually used for farm or agricultural purposes; and
(ii) qualifies for assessment under this section.
[(2)] (3) The criteria shall include:
(i) the zoning of the land;
(ii) the present and past use of the land including land under the Soil
Bank Program of the United States;
(iii) the productivity of the land, including timberlands and
reforested lands; and
(iv) the gross income that is derived from the agricultural activity.
(4) (I) THIS PARAGRAPH APPLIE S TO THROUGH THE LIFE CYCLE
OF A COMMUNITY SOLAR EN ERGY GENERATING SYST EM THAT:
1. IS PLACED IN SERVICE AFTER JUNE 30, 2022; AND
2. HAS BEEN APPROVED ON OR BEFORE DECEMBER 31,
2025, AS A COMMUNITY SOLAR ENERGY GENERATING SY STEM BY THE PUBLIC
SERVICE COMMISSION UNDER § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE
THROUGH THE LIFE CYC LE OF A SYSTEM.
(II) THE DEPARTMENT SHALL ASSE SS AND QUALIFY LAND THAT
IS USED BY A COMMUNI TY SOLAR ENERGY GENE RATING SYSTEM FOR AG RIVOLTAICS
AS LAND THAT IS ACTI VELY USED FOR FARM O R AGRICULTURAL PURPOSE S.
9–112. LAWRENCE J. HOGAN, JR., Governor Ch. 659
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(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) “BROWNFIELD” HAS THE MEANING STAT ED IN § 7–237 OF THIS
ARTICLE.
(3) “QUALIFIED PROPERTY ” MEANS A BROWNFIELD , LANDFILL, OR
CLEAN FILL ON WHIC H A COMMUNITY SOLAR ENERGY GENERATING SY STEM, AS
DEFINED UNDER § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE, IS INSTALLED.
(B) (1) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY AND THE
GOVERNING BODY OF EA CH COUNTY AND OF EAC H MUNICIPAL CORPORAT ION SHALL
GRANT A PROPERTY TAX CREDIT UNDER THIS SE CTION AGAINST THE CO UNTY OR
MUNICIPAL CORPORATIO N PROPERTY TAX IMPOS ED ON A QUALIFIED PR OPERTY.
(2) IN ADDITION TO THE PR OPERTY TAX CREDIT PR OVIDED UNDER
PARAGRAPH (1) OF THIS SUBSECTION , THERE IS A CREDIT AG AINST THE STATE
PROPERTY TAX THAT IS IMPOSED ON QUALIFIED PROPERTY.
(C) THE AMOUNT OF THE PRO PERTY TAX CREDIT ALL OWED UNDER THIS
SECTION SHALL EQUAL 50% OF THE STATE, COUNTY, OR MUNICIPAL CORPORA TION
PROPERTY TAX THAT IS IMPOSED ON THE ELIGI BLE ASSESSMENT OF QUALIFIED
PROPERTY.
(D) THE PROPERTY TAX CRED IT UNDER THIS SECTIO N MAY BE GRANTED
ONLY FOR QUALIFIED PROPER TY ON WHICH THE INST ALLATION OF A THROUGH THE
LIFE CYCLE OF A COMMUNITY SOLAR ENER GY GENERATING SYSTEM IF THE SYSTEM
INSTALLED ON THE QUA LIFIED PROPERTY:
(1) IS PLACED IN SERVICE AFTER JUNE 30, 2022; AND
(2) HAS BEEN APPROVED BY THE PUBLIC SERVICE COMMISSION
UNDER § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE ON OR BEFORE DECEMBER
31, 2025, THROUGH THE LIFE CYC LE OF THE SYSTEM .
(E) ON OR BEFORE JUNE 15 EACH YEAR, THE DEPARTMENT SHALL SUBM IT
TO THE PUBLIC SERVICE COMMISSION A LIST THA T INCLUDES:
(1) THE LOCATION OF EACH QUALIFIED PROPERTY ;
(2) THE AMOUNT OF THE BA SE YEAR VALUE FOR EA CH QUALIFIED
PROPERTY; AND
Ch. 659 2022 LAWS OF MARYLAND
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(3) THE AMOUNT OF THE PROPERTY TAX ASSESSE D AGAINST EACH
QUALIFIED PROPERTY .
SECTION 2. 3. 2. AND BE IT FURTHER ENACTED, That:
(a) The Maryland Energy Administration shall study the effectiveness of the tax
incentives established in Section 2 of this Act on encouraging community solar energy
generating systems to be installed on rooftops, brownfields, landfills, and clean fills and
used for agrivoltaics.
(b) On or before December 31, 2024, the Maryland Energy Administration shall
report to the General Assembly, in accordance with § 2–1257 of the State Government
Article, on its findings and recommendations based on the study conducted under this
section.
SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be
applicable to all taxable years beginning after June 30, 2022.
SECTION 3. 5. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
June 1, 2022, and shall be applicable to all taxable years beginning after June 30, 2022, and
shall be applicable to all taxable years beginning after June 30, 2022.
Enacted under Article II, § 17(c) of the Maryland Constitution, May 29, 2022.