Maryland 2024 Regular Session

Maryland House Bill HB361 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0361
6	6
7	7	HOUSE BILL 361
8	8	Q1 4lr1759
9	9	CF 4lr1758
10	10	By: Delegate Jackson
11	11	Introduced and read first time: January 17, 2024
12	12	Assigned to: Economic Matters
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Property Tax Exemption for Community Solar Energy Generating Systems 2
19	19	– Limitation on Generating Capacity – Alteration 3
20	20
21	21	FOR the purpose of increasing a certain limitation on the generating capacity for certain 4
22	22	community solar energy generating systems that are exempt from personal property 5
23	23	taxes; and generally relating to a personal property tax exemption for community 6
24	24	solar energy generating systems. 7
25	25
26	26	BY repealing and reenacting, without amendments, 8
27	27	Article – Public Utilities 9
28	28	Section 7–306.2(a)(1) and (4) 10
29	29	Annotated Code of Maryland 11
30	30	(2020 Replacement Volume and 2023 Supplement) 12
31	31
32	32	BY repealing and reenacting, with amendments, 13
33	33	Article – Tax – Property 14
34	34	Section 7–237(c) 15
35	35	Annotated Code of Maryland 16
36	36	(2019 Replacement Volume and 2023 Supplement) 17
37	37
38	38	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
39	39	That the Laws of Maryland read as follows: 19
40	40
41	41	Article – Public Utilities 20
42	42
43	43	7–306.2. 21
44	44
45	45	(a) (1) In this section the following words have the meanings indicated. 22
46	46
47	47	(4) “Community solar energy generating system” means a solar energy 23
48	48	system that: 24 2 HOUSE BILL 361
49	49
50	50
51	51
52	52	(i) is connected to the electric distribution grid serving the State; 1
53	53
54	54	(ii) is located in the same electric service territory as its subscribers; 2
55	55
56	56	(iii) is attached to the electric meter of a subscriber or is a separate 3
57	57	facility with its own electric meter; 4
58	58
59	59	(iv) credits its generated electricity, or the value of its generated 5
60	60	electricity, to the bills of the subscribers to that system through virtual net energy 6
61	61	metering; 7
62	62
63	63	(v) has at least two subscribers but no limit to the maximum number 8
64	64	of subscribers; 9
65	65
66	66	(vi) does not have subscriptions larger than 200 kilowatts 10
67	67	constituting more than 60% of its kilowatt–hour output; 11
68	68
69	69	(vii) has a generating capacity that does not exceed 5 megawatts as 12
70	70	measured by the alternating current rating of the system’s inverter; 13
71	71
72	72	(viii) may be owned by any person; and 14
73	73
74	74	(ix) with respect to community solar energy generating systems 15
75	75	constructed under the Program, serves at least 40% of its kilowatt–hour output to LMI 16
76	76	subscribers unless the solar energy system is wholly owned by the subscribers to the solar 17
77	77	energy system. 18
78	78
79	79	Article – Tax – Property 19
80	80
81	81	7–237. 20
82	82
83	83	(c) (1) (i) In this subsection the following words have the meanings 21
84	84	indicated. 22
85	85
86	86	(ii) “Agrivoltaics” means the simultaneous use of areas of land for 23
87	87	both solar power generation and agriculture. 24
88	88
89	89	(iii) “Brownfield” means: 25
90	90
91	91	1. a former industrial or commercial site identified by federal 26
92	92	or State laws or regulations as contaminated or polluted; or 27
93	93
94	94	2. a closed municipal or rubble landfill regulated under a 28
95	95	refuse disposal permit by the Department of the Environment. 29
96	96
97	97	(iv) “Community solar energy generating system” has the meaning 30 HOUSE BILL 361 3
98	98
99	99
100	100	stated in § 7–306.2 of the Public Utilities Article. 1
101	101
102	102	(v) “Electric company” has the meaning stated in § 1–101 of the 2
103	103	Public Utilities Article. 3
104	104
105	105	(2) This subsection applies through the life cycle of a community solar 4
106	106	energy generating system that: 5
107	107
108	108	(i) is placed in service after June 30, 2022; and 6
109	109
110	110	(ii) has been approved on or before December 31, 2025, by the Public 7
111	111	Service Commission under § 7–306.2 of the Public Utilities Article. 8
112	112
113	113	(3) Personal property is exempt from county or municipal corporation 9
114	114	property tax if the property is machinery or equipment that is part of a community solar 10
115	115	energy generating system that: 11
116	116
117	117	(i) has a generating capacity that does not exceed [2] 5 megawatts 12
118	118	as measured by the alternating current rating of the system’s inverter; 13
119	119
120	120	(ii) provides at least 50% of the energy it produces to low– or 14
121	121	moderate–income customers at a cost that is at least 20% less than the amount charged by 15
122	122	the electric company that serves the area where the community solar energy generating 16
123	123	system is located; and 17
124	124
125	125	(iii) 1. is used for agrivoltaics; or 18
126	126
127	127	2. is installed on a rooftop, brownfield, parking facility 19
128	128	canopy, landfill, or clean fill. 20
129	129
130	130	(4) On or before October 1 each year, the Department shall report to the 21
131	131	Senate Budget and Taxation Committee and the House Ways and Means Committee, in 22
132	132	accordance with § 2–1257 of the State Government Article, on the number and location of 23
133	133	projects that, in the immediately preceding taxable year, have received the exemption 24
134	134	under this subsection. 25
135	135
136	136	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 26
137	137	1, 2024, and shall be applicable to all taxable years beginning after June 30, 2024. 27
138	138