Prince George’s County, MD offers a property tax credit for solar installations. The tax credit is only applicable to the COUNTY section of your property tax bill. Below is a summary of the tax credit, its current status, and how to apply for the credit if you’ve installed solar at your home in PG County.
Purchased or Loan Financed Systems
The property tax credit is equal to one of the following three with the lowest value:
- 50% of the installed cost of the solar PV system,
- Or, three years worth of your county property taxes
Example: If a system cost $11,000, then $5,000 would be less than 50% of the total installation cost ($5,500). However, if the total property tax is only $1,300 each year, then you would only get $3900 in tax credits over the 3 years, not $5,500 or $5,000.
The total value of credits granted by the county during a fiscal year may not exceed $250,000. In the event that applications during a fiscal year exceed this limit, a credit may be granted the following year or years in the order applications are received.
As such, there is currently a wait list through PG County’s fiscal year 2023 (July 2022). It is MD SUN’s recommendation that homeowners wishing to install solar forge ahead budgeting for an installation without relying on receiving the PG County tax credit, but the homeowner should still apply for the credit. Other incentives for solar, like the 30% Federal Tax Credit, solar renewable energy credits (SRECs), and Maryland’s $1,000 Clean Energy Grant also help make solar affordable.
NOTE: If you sell your home before the credit is delivered the next homeowner will not receive it nor will you.
PPA and Leased Systems
The property tax credit for PPA (power purchase agreement) or leased systems is equal to the down payment on energy costs made on these systems, up to a maximum of $1,000. Pre-payment of electricity costs have been reimbursed to date, but ancillary costs such as tree trimming, roof reinforcement, or electrical upgrades will be considered if these costs are out-of-pocket and are documented. For ancillary costs, a minimum of $2,000 would have to be put into the eligible costs to qualify for the credit.
The following documents must accompany the lease/PPA application when submitted:
- A copy of the invoice showing the type of system installed
- A copy of the lease agreement
- A copy of an invoice of the down payment on purchase of electricity
The application process is usually less than a week and the credit is available once the application has been approved. There is currently no wait list for tax credits for lease/PPA systems.
You must apply for the tax credit within 12 months of your solar installation.
Make sure you have a copy of the invoice from your solar installer showing that you’ve paid for your solar system.
- Fill out the attached “Alternative Energy Tax Credit” application form. a. Property Tax Account Number and District number can be found by searching Maryland’s online database, or by calling Terry below. b. Energy Type: check the box besides “Photovoltaic”
- Sign the form in front of a Public Notary
- Attach the copy of your invoice showing that you’ve paid for your solar system to the completed “Alternative Energy Tax Credit” application form. (Lease/PPA require additional documents listed above)
- Mail the forms to:
14741 Governor Oden Bowie Drive, Suite 1090
Upper Marlboro, MD 20772
- You’ll receive a letter from the PG County Government’s Office of Finance, Treasury Division letting you know the status of your application
If you have questions about the property tax credit you can contact Terry Tobler by phone at 301-952-5375, or email at email@example.com