Maryland Tax SavingsClean Energy Production Personal Tax CreditMaryland offers a production tax credit for electricity generated by wind, geothermal energy, solar energy, hydropower, small irrigation power, municipal solid waste and biomass resources. Eligible biomass resources include anaerobic digestion, landfill gas, wastewater-treatment gas, and cellulosic material derived from forest-related resources (excluding old-growth timber), from waste pallets and crates, or from agricultural sources. Montgomery County - Clean Energy Rewards ProgramIn March 2005, the Montgomery County Council unanimously approved the Clean Energy Rewards Program, which offers residents and businesses a financial reward for buying clean energy. The reward level has not yet been set, and the incentive rates are being established based on feedback from program stakeholders. Eligible participants would receive either a direct payment of an estimated $60 per year or the same amount credited against their utility bills. Wind, landfill gas and solar are among the energy sources that may be eligible for the rewards program. Solar Energy Grant ProgramMaryland's Solar Energy Grant Program, administered by the Maryland Energy Administration (MEA), provides financial incentives to homeowners, businesses, local governments and non-profit organizations that install solar water-heating systems or solar-electric (PV) systems. This program, which took effect in January 2005, replaced the state's expired "Clean Energy Incentives" tax credit for solar-energy equipment. Property Tax ExemptionTitle 8 of Maryland’s property tax code allows for a state-wide special assessment provision for solar heating and cooling systems. Under this provision, such systems are to be assessed at not more than the value of a conventional system for property tax purposes if no conventional system exists in the building. If a solar energy heating and cooling system is installed in addition to a conventional system in a building, the combined system may be assessed at not more than the value of the conventional system -- essentially a full exemption for the solar energy equipment. Wood Heating Fuel ExemptionThis statute exempts from the state sales tax all wood or "refuse-derived" fuel used for heating purposes. This exemption applies to residential use only. Net MeteringIn 1997, Maryland enacted legislation allowing net metering for residential customers and schools with qualified solar-energy systems up to 80 kilowatts (kW) in capacity. In May 2004, the rules were expanded by including wind as an eligible technology, and by extending eligibility to commercial facilities. These revisions took effect October 1, 2004. In April 2005, the rules were again expanded -- by including biomass as an eligible resource, and by increasing the maximum system capacity from 80 kW to 200 kW. Furthermore, under the April 2005 revisions, generators may petition the Maryland Public Service Commission (PSC) to allow net metering for systems with a capacity of up to 500 kW. The PSC has the authority to approve net metering for systems up to 500 kW if the commission finds that the project meets public safety and reliability requirements, and that the project is in the public interest. The April 2005 revisions took effect October 1, 2005.
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