Montgomery County - High Performance Building Property Tax Credit (Maryland)

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Last modified on February 12, 2015.

Financial Incentive Program

Place Maryland

Name Montgomery County - High Performance Building Property Tax Credit
Incentive Type Property Tax Incentive
Applicable Sector Commercial, Industrial, Multi-Family Residential
Eligible Technologies Custom/Others pending approval, Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Biomass, Geothermal Heat Pumps, Daylighting, Small Hydroelectric
Active Incentive Yes
Implementing Sector Local
Energy Category Renewable Energy Incentive Programs, Energy Efficiency Incentive Programs
Amount 10% to 75% credit from property taxes owed on building for 3-5 years; varies by building type and building rating

Eligible System Size Building must meet minimum LEED standards (CS, NC, or EB) or equivalent to qualify

Start Date 2008-03-17

Maximum Incentive Total: 5 million per fiscal year limit for all buildings

Silver rating: 1.5 million per fiscal year
Gold rating: 2.5 million per fiscal year

Program Administrator Department of Finance

References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


The state of Maryland permits local governments (Md Code: Property Tax § 9-242) to offer property tax credits for high performance buildings if they choose to do so. Montgomery County has exercised this option by offering property tax credits on new or extensively modified multi-family residential and commercial buildings that meet certain high performance building standards. An "extensive modification" is defined as a structural modification that alters 50% or more of the building's square footage.

The tax credit generally uses the U.S. Green Building Council's LEED rating system as a metric for determining how "green"' a building is, although buildings that achieve comparable ratings under other green building standards are also eligible for the tax credit. Tax credits are available for buildings that achieve minimum ratings under the LEED New Construction (NC); Core and Shell (CS); and Existing Building (EB).

The amount (10-75%) and term (3-5 years) of the tax credit varies based on the type project and the rating it achieves. See the table below for details. The term "covered" refers to new or substantially reconstructed non-residential and multi-family residential buildings over 10,000 square feet, which are already required by county law to meet the basic LEED certification standard or its equivalent. Thus the minimum standard for property tax credits on buildings of this type is correspondingly higher.


Incentive Contact

Contact Name High Performance Building Property Tax Information - Montgomery County
Department Montgomery County Department of Finance
Division Division of Treasury
Address 255 Rockville Pike, Suite L-15
Place Rockville, Maryland
Zip/Postal Code 20850
Phone (240) 777-8965


Authorities (Please contact the if there are any file problems.)

Authority 1: Montgomery County Code Sec. 52-18Q
Date Effective 2008-03-17
Date Enacted 2007-12-17

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency" Cite error: Invalid <ref> tag; name "DSIRE" defined multiple times with different content