Schedule Your Solar Analysis
Schedule an Energy Audit

Referral Form

Media
Find Us On Facebook

MD – Corporate

Clean Energy Production Tax Credit (Corporate)


 
State: Maryland
Incentive Type: Corporate Tax Credit
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Municipal Solid Waste, Co-firing, Anaerobic Digestion
Applicable Sectors: Commercial, Industrial, Residential, Utility, Agricultural
Amount: $0.0085/kWh ($0.005/kWh for co-fired electricity)
Maximum Incentive: $2.5 million (total credit during five-year period)
Carryover Provisions: Remainder of credit carried forward to succeeding taxable years until credit is used or until expiration of the 10th taxable year after the taxable year in which the credit began
Web Site: http://energy.maryland.gov/incentives/allprograms/cep_taxcredit.a
Date Enacted:
2000 (subsequently amended)
Date Effective:
07/01/2000
Expiration Date
12/31/2010
Authority 2:
Date Effective:
02/26/2007
Expiration Date
12/31/2010
 
Summary:
Maryland offers a production tax credit for electricity generated by wind, geothermal energy, solar energy, hydropower, small irrigation power, municipal solid waste and biomass resources. Eligible biomass resources include anaerobic digestion, landfill gas, wastewater-treatment gas, and cellulosic material derived from forest-related resources (excluding old-growth timber and mill residues consisting of sawdust or wood shavings)*, from waste pallets and crates, or from agricultural sources. The list of eligible resources is generally the same as those eligible for the federal renewable electricity production tax credit (PTC), except the Maryland law contains added provisions related to biomass and biogas technologies.  
 
To qualify, a facility that “primarily uses” eligible resources to generate electricity must (1) be placed in service on or after January 1, 2006, but before January 1, 2011, or (2) generate electricity from an eligible resource that is co-fired with coal and initially begins co-firing an eligible resource on or after January 1, 2006, but before January 1, 2011, regardless of when the original facility was placed in service.  
 
An individual or corporation that applies for and receives certification from the Maryland Energy Administration (MEA) may claim a credit equal to 0.85 cents per kilowatt-hour ($0.0085/kWh) against the state income tax, for a five-year period, for electricity generated by eligible resources. The credit for electricity generated by co-firing is 0.5 cents per kilowatt-hour ($0.005/kWh). The electricity generated must be sold to an unrelated person during the taxable year. The MEA indicates that a net metering or interconnection agreement is sufficient documentation for this requirement.  
 
Certificates issued by the Maryland Energy Administration will state the maximum amount of credit over a five-year period and the earliest tax year for which the credit may be claimed. The maximum amount of credit is based on estimated annual energy production during a five-year period, or $2.5 million. The sum of all credits statewide may not exceed $25 million. If the credit in any taxable year exceeds a taxpayer’s state income tax, the remainder of the credit may be carried forward and applied to succeeding taxable years until the credit is used or until the expiration of the 10th taxable year after the taxable year in which the credit began.  
 
Applications for credit certificates will be approved on a first-come, first-served basis. Certificates will not be issued after December 31, 2010. If, over a three-year period, a taxpayer does not claim on average at least 10% of the maximum credit amount stated in the certificate, the Maryland Energy Administration may cancel part of the certificate. In October 2007 the first credit certificate approved under this program was awarded to a landfill methane gas project at the Baltimore County Eastern Sanitary Landfill. The 3 MW project is operated by Pepco Energy Services and the tax credit is valued at $770,661.  
 
Further information on certificate applications and other program rules is available from the program website link at the top of this page.  
 
*Eligible mill residues include bark, chips, slabs, and edging, although slabs and edging are usually made into chips.

 


 
Contact:

  Chris Rice
Maryland Energy Administration
1623 Forest Drive, Suite 300
Annapolis, MD 21403
Phone: (410) 260-7207
Fax: (410) 974-2250
E-Mail: CRice@energy.state.md.us
Web Site: http://www.energy.state.md.us/

 

Montgomery County – Clean Energy Rewards Program


 
State: Maryland
Incentive Type: Local Rebate Program
Eligible Renewable/Other Technologies: Photovoltaics, Wind, Biomass
Applicable Sectors: Commercial, Residential
Amount: $0.005 (0.5 cents) per kWh
Maximum Incentive: Residential: 20,000 kWh/year
Commercial: 400,000 kWh/year
Web Site: http://www.montgomerycountymd.gov/deptmpl.asp?url=/content/dep/re
Date Enacted:
03/08/2005
Date Effective:
06/18/2005
Date Enacted:
07/11/2006
Date Effective:
08/10/2006
Date Enacted:
10/14/2008
 
Summary:
Note: Due to high demand, all available funds have for this program have already been allocated. It is possible that new program participants will be able to receive awards if additional funding becomes available.  
 
The Montgomery County Clean Energy Rewards program provides incentives to Montgomery County residents, businesses, non-profits, and congregations for purchasing clean energy through certified suppliers. Customers receive a credit of 0.5 cents per kWh ($0.005/kWh)* of clean energy used. The credit applies to purchases of up to 20,000 kWh per year for residential customers and 400,000 kWh per year for non-residential customers. In order to be eligible for a reward, participants must make a minimum clean energy purchase commitment of at least 50% of their annual electricity use. The incentives are distributed by suppliers and will appear as a credit on consumer’s monthly bills. The County’s Department of Environmental Protection, which administers the program, estimates that this credit should offset a significant portion of the incremental cost of clean energy. The exact level of savings depends on the relative costs of green energy products compared to standard utility price offerings.  
 
A list of participating suppliers and descriptions of eligible products are available on the program’s website. The only electricity supplier providing Clean Energy Rewards eligible products is Washington Gas Energy Services. Consumers interested in the program may also purchase renewable energy certificates (RECs). The REC marketers providing eligible REC products are Clean Currents, Sterling Planet, and WindCurrent.  
 
All suppliers and products marketed through the program are certified by DEP. Clean energy products must be generated within the U.S., tracked in a regional RTO or ISO system such as PJM GATS, WREGIS, M-RETS, etc., and composed of solar, wind, methane gas, and/or sustainable biomass. A total of $561,000 is available for rewards until through 2009. Consumers can learn more about the program through the website listed above.  
 
Consumers generating electricity on their property using photovoltaics (PV) can also receive rewards from Montgomery County. Click here for more information on rewards for on-site renewable energy generation.  
 
*County Resolution 16-737 enacted in October 2008 reduced the incentive level to $0.005/kWh for all customers from the prior levels of $0.01/kWh for residential customers and from $0.015/kWh for non-residential customers. The resolution also increased the maximum non-residential purchase from 100,000 kWh to 400,000 kWh. 
 

 
Contact:

  Susan Kirby
Montgomery County Maryland
Department of Environmental Protection
255 Rockville Pike
Suite 120
Rockville, MD 20850
Phone: (240) 777-7700
E-Mail: Susan.Kirby@montgomerycountymd.gov
Web Site: http://www.montgomerycountymd.gov/deptmpl.asp?url=/Content/dep/index.asp