Sales Tax Holiday for Energy-Efficient Appliances (Maryland)

From Open Energy Information


Last modified on February 12, 2015.

Financial Incentive Program

Place Maryland

Name Sales Tax Holiday for Energy-Efficient Appliances
Incentive Type Sales Tax Incentive
Applicable Sector General Public/Consumer
Eligible Technologies Boilers, Central Air conditioners, Clothes Washers, Dehumidifiers, Furnaces, Heat pumps, Lighting, Programmable Thermostats, Refrigerators, Room Air Conditioners, Geothermal Heat Pumps, Solar Water Heat
Active Incentive Yes
Implementing Sector State/Territory
Energy Category Energy Efficiency Incentive Programs, Renewable Energy Incentive Programs
Amount 100% exemption

Equipment Requirements Equipment must meet Energy Star criteria
Start Date 2011

Maximum Incentive None

Program Administrator Comptroller of Maryland

References DSIRE[1]


In November 2007, Maryland enacted legislation creating a sales and use tax "holiday" for certain energy-efficient appliances, beginning in 2011. Under the law, qualifying appliances purchased during a designated period are not subject to the state sales and use tax (6%). The holiday time frame is established as a three-day period running from "the Saturday immediately preceding the third Monday in February through the third Monday in February each year". In 2012, the holiday runs from February 18 to February 20. (It will vary in future years depending on how the designated time frame falls on the calendar.)

In order to qualify for the exemption, qualifying pieces of equipment must be designated as meeting or exceeding the efficiency requirements of the Energy Star program. The law defines eligible Energy Star product types as follows:

  • Air conditioners (the Energy Star designation includes both central and room air conditioners)
  • Clothes washers*
  • Furnaces
  • Heat pumps
  • Standard size refrigerators
  • Compact fluorescent light bulbs
  • Dehumidifiers
  • Boilers
  • Programmable thermostats**

The law also lists solar water heaters and heat pumps (presumably including geothermal heat pumps) as eligible for the exemption. However, a separate law offers a less restrictive year-round sales and use tax exemption for renewable energy equipment, including both solar water heaters and geothermal heat pumps.

* While the law also defines clothes dryers as an eligible appliance, the Energy Star program does not currently certify clothes dryers.

**The Energy Star specification for programmable thermostats was suspended December 31, 2009.

Incentive Contact

Contact Name Information Specialist - Shop Maryland
Department Comptroller of Maryland

Place Annapolis, Maryland
Zip/Postal Code 21411-0001
Phone (800) 638-2937
Phone 2 (410) 260-7980

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

Authority 1: Md. TAX-GENERAL Code § 11-226
Date Effective 07/01/2008 (exemption did not begin until 2011)
Date Enacted 11/19/2007 (subsequently amended)

  • 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 (DSIRE)"