Sales Tax Exemption - Fuel Cells (Maryland)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Sales Tax Exemption - Fuel Cells|
|Incentive Type||Sales Tax Incentive|
|Eligible Technologies||Fuel Cells|
|Energy Category||Renewable Energy Incentive Programs|
|Equipment Requirements||Electric efficiency of greater than 35%; at least 2kW|
|Expiration Date|| 2004-07-01
|Maximum Incentive|| none
|Program Administrator||Maryland Energy Administration|
The Maryland Clean Energy Incentives Act provides for a sales tax exemption for fuel cells that: (i) generate electricity and heat using an electrochemical process; (ii) have an electricity-only generation efficiency greater than 35%; and (iii) have a generating capacity of at least 2 kW.
Under Maryland law, sales tax for many types of heating, ventilation, and air conditioning equipment is charged at the wholesale level and not to the consumer directly. Therefore, in this case, the contractor who installs the fuel cell is the one who would pay the sales tax and, therefore, is eligible to receive the tax exemption.
The process for obtaining the tax exemption for the following equipment requires the applicant to submit four documents to the Maryland Comptrollers Office: (1) system components purchased as a package; (2) Invoice from vendor showing sales tax was actually paid; (3) Statement or Certification from manufacturer, vendor or accepted industry rating association showing that the system meets applicable efficiency rating requirements; (4) Comptroller Sales and Use Tax Refund Application (The application form, # COT/ST 205, can be downloaded from the Web site shown above).
Authorities (Please contact the if there are any file problems.)
|Authority 1:||Maryland Code: Tax - General § 11-226|
|Contact Name||Louise Collins|
|Department||Comptroller of Maryland|
|Division|| Revenue Administration Division
|Phone 2||(800) 638-2937|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.