Sales and Use Tax Exemption for Renewable Energy Equipment (Maryland)

From Open Energy Information


Last modified on February 12, 2015.

Financial Incentive Program

Place Maryland

Name Sales and Use Tax Exemption for Renewable Energy Equipment
Incentive Type Sales Tax Incentive
Applicable Sector Commercial, Industrial, Residential, General Public/Consumer, Agricultural
Eligible Technologies Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Photovoltaics, Wind, Geothermal Heat Pumps
Active Incentive Yes
Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 100% exemption

Maximum Incentive None

Program Administrator Comptroller of Maryland

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


In April 2008, the Maryland enacted legislation exempting geothermal and solar energy equipment from the state sales and use tax. Geothermal equipment is defined as "equipment that uses ground loop technology to heat and cool a structure". Solar energy equipment is defined as "equipment that uses solar energy to heat or cool a structure, generate electricity to be used in a structure, or provide hot water for use in a structure". Solar energy equipment does not include "equipment that is part of a non-solar energy system or that uses any type of recreational facility or equipment as a storage medium". These distinctions appear to indicate that solar pool heating equipment, and possibly passive solar materials, are not eligible for the exemption.

Two pieces of legislation expanding the sales tax exemption were enacted in May 2009. H.B. 1171 added residential wind energy equipment as eligible for this incentive. Residential wind energy equipment is equipment installed on a residential property that uses wind energy to generate electricity for use in a residential structure on that property. S.B. 621 revised the definition of solar energy equipment to include systems that supply electricity to the grid (e.g., through a net metering agreement). The amendments contained in both laws took effect July 1, 2009.

Incentive Contact

Contact Name Information Specialist (Sales Tax) - Comptroller of Maryland
Department Revenue Administration Center
Division Taxpayer Service Section

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

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

Authority 1: Md Code: General Tax §11-230
Date Effective 2008-07-01
Date Enacted 04/24/2008 (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" Cite error: Invalid <ref> tag; name "DSIRE" defined multiple times with different content