EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0361*
HOUSE BILL 361
Q1 4lr1759
CF 4lr1758
By: Delegate Jackson
Introduced and read first time: January 17, 2024
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Property Tax Exemption for Community Solar Energy Generating Systems 2
– Limitation on Generating Capacity – Alteration 3
FOR the purpose of increasing a certain limitation on the generating capacity for certain 4
community solar energy generating systems that are exempt from personal property 5
taxes; and generally relating to a personal property tax exemption for community 6
solar energy generating systems. 7
BY repealing and reenacting, without amendments, 8
Article – Public Utilities 9
Section 7–306.2(a)(1) and (4) 10
Annotated Code of Maryland 11
(2020 Replacement Volume and 2023 Supplement) 12
BY repealing and reenacting, with amendments, 13
Article – Tax – Property 14
Section 7–237(c) 15
Annotated Code of Maryland 16
(2019 Replacement Volume and 2023 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Public Utilities 20
7–306.2. 21
(a) (1) In this section the following words have the meanings indicated. 22
(4) “Community solar energy generating system” means a solar energy 23
system that: 24 2 HOUSE BILL 361
(i) is connected to the electric distribution grid serving the State; 1
(ii) is located in the same electric service territory as its subscribers; 2
(iii) is attached to the electric meter of a subscriber or is a separate 3
facility with its own electric meter; 4
(iv) credits its generated electricity, or the value of its generated 5
electricity, to the bills of the subscribers to that system through virtual net energy 6
metering; 7
(v) has at least two subscribers but no limit to the maximum number 8
of subscribers; 9
(vi) does not have subscriptions larger than 200 kilowatts 10
constituting more than 60% of its kilowatt–hour output; 11
(vii) has a generating capacity that does not exceed 5 megawatts as 12
measured by the alternating current rating of the system’s inverter; 13
(viii) may be owned by any person; and 14
(ix) with respect to community solar energy generating systems 15
constructed under the Program, serves at least 40% of its kilowatt–hour output to LMI 16
subscribers unless the solar energy system is wholly owned by the subscribers to the solar 17
energy system. 18
Article – Tax – Property 19
7–237. 20
(c) (1) (i) In this subsection the following words have the meanings 21
indicated. 22
(ii) “Agrivoltaics” means the simultaneous use of areas of land for 23
both solar power generation and agriculture. 24
(iii) “Brownfield” means: 25
1. a former industrial or commercial site identified by federal 26
or State laws or regulations as contaminated or polluted; or 27
2. a closed municipal or rubble landfill regulated under a 28
refuse disposal permit by the Department of the Environment. 29
(iv) “Community solar energy generating system” has the meaning 30 HOUSE BILL 361 3
stated in § 7–306.2 of the Public Utilities Article. 1
(v) “Electric company” has the meaning stated in § 1–101 of the 2
Public Utilities Article. 3
(2) This subsection applies through the life cycle of a community solar 4
energy generating system that: 5
(i) is placed in service after June 30, 2022; and 6
(ii) has been approved on or before December 31, 2025, by the Public 7
Service Commission under § 7–306.2 of the Public Utilities Article. 8
(3) Personal property is exempt from county or municipal corporation 9
property tax if the property is machinery or equipment that is part of a community solar 10
energy generating system that: 11
(i) has a generating capacity that does not exceed [2] 5 megawatts 12
as measured by the alternating current rating of the system’s inverter; 13
(ii) provides at least 50% of the energy it produces to low– or 14
moderate–income customers at a cost that is at least 20% less than the amount charged by 15
the electric company that serves the area where the community solar energy generating 16
system is located; and 17
(iii) 1. is used for agrivoltaics; or 18
2. is installed on a rooftop, brownfield, parking facility 19
canopy, landfill, or clean fill. 20
(4) On or before October 1 each year, the Department shall report to the 21
Senate Budget and Taxation Committee and the House Ways and Means Committee, in 22
accordance with § 2–1257 of the State Government Article, on the number and location of 23
projects that, in the immediately preceding taxable year, have received the exemption 24
under this subsection. 25
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 26
1, 2024, and shall be applicable to all taxable years beginning after June 30, 2024. 27