Anne Arundel County: Solar and Geothermal Equipment Property Tax Credits

Anne Arundel County offers a one-time credit from county property taxes on residential dwellings that use solar and geothermal energy equipment for heating and cooling, and solar energy equipment for water heating and electricity generation. Photovoltaic (PV) systems and geothermal systems were initially not eligible for the tax credit, but PV systems were added by legislation enacted in January 2009 (County Bill 81-08) and geothermal heating and cooling systems were added in April 2010 (County Bill 17-10). Solar energy devices must be installed on or after January 1, 2007 in order to be eligible for the tax credit. Geothermal equipment must be installed on or after January 1, 2009 in order to be eligible for the tax credit. Expenditures for solar pool heating are not eligible for the tax credit.

The one-time tax credit is calculated as the lesser of the following:

• 50% of the cost of materials and installation of the solar energy equipment, less the amount of federal and state grants and state solar energy tax credits; or
• $2,500

It is important to note that the tax credit is credited from the taxes on the dwelling itself and not those levied on the land. Applications must be filed on or before June 1 of the year immediately preceding the year for which the credit is sought. Tax credit applications for PV systems must be filed before June 1, 2012, but no deadlines are specified for other eligible solar energy devices. Please contact the Anne Arundel County Office of Finance for tax credit applications and further information.