Maryland Energy Storage Income Tax Credit Application

Maryland Energy Storage Income Tax Credit

Tax Year 2023 Application
Welcome The Maryland Energy Administration (MEA) is pleased to announce the launch of the Tax Year 2023 Maryland Energy Storage Income Tax Credit Program (the “Program”). The Program is designed to encourage the deployment of energy storage systems in Maryland.

Program Overview
The Program is available to residential and commercial taxpayers who have installed an energy storage system on their residential or commercial property in Maryland during Tax Year 2023 (January 1 - December 31, 2023). Under the enabling statute, MEA may award a total of $750,000 in tax credit certificates for a given tax year. Tax credit certificates will be awarded to eligible applicants on a first come, first served basis during Tax Year 2023. Current law authorizes MEA to offer this program for Tax Years 2018 through 2024.

The deadline to apply for a Tax Year 2023 energy storage tax credit is January 15, 2024 at 5:00 PM Eastern. MEA will not accept missing documents or information for applications on file for Tax Year 2023 after January 20, 2024 at 11:59 pm Eastern.

MEA will initially follow the Reserved Tax Credit Allocation noted in Table 1.1 which reserves available tax credits for residential and commercial taxpayers who have either purchased or leased an energy storage system.

If any of the Reserved Tax Credit Allocations become oversubscribed, applicants will be placed onto a wait list if tax credits remain available in the other Reserved Tax Credit Allocations. MEA will remove the Reserved Tax Credit Allocations on July 1, 2023 and tax credits will be issued on a first-come, first-served basis. Applicants that were placed onto the waitlist will be issued tax credit certificates in the order MEA received the applications. If the program utilizes the full $750,000 of tax credit certificates for Tax Year 2023 before July 1, 2023, applicants placed onto the waitlist in Tax Year 2023 cannot be carried over to Tax Year 2024. Under no circumstances will more than $750,000 in energy storage tax credit certificates be awarded for a single Tax Year.

Tax Credit Calculation
Tax Credit Calculations Energy storage tax credit certificates are calculated differently for systems installed on residential and commercial properties. A tax credit certificate is calculated as the lower amount of:
- 30 percent of the total installed costs of the energy storage system; or,
- $5,000 for an energy storage system installed on a residential property; or,
- $150,000 for an energy storage system installed on a commercial property.
Total Installed Costs To calculate the Total Installed Costs of the energy storage installation, MEA will take the sum of the line items listed below from your contract and invoicing documents. MEA will then subtract any discounts offered by the installation contractor from the Total Installed Costs before calculating the energy storage tax credit certificate. It is essential that your installation contractor provide a clear invoice articulating the costs of each component of the system.
- Cost of the Energy Storage System (e.g., Home Battery System)
- Cost of Electrical Work/Equipment (e.g., Electrical Gateway)
- Cost of Installation and Labor
- Cost of Required Permits (e.g., Building, Electrical, and Occupancy Use Permits)
- Maryland Sales and Use Tax

For questions, suggestions, or more information, please contact MEA at energystorage.mea@maryland.gov or by phone at 410-537-4000.

Disclaimer - The Maryland Energy Administration cannot provide tax advice. If you have any questions about Maryland State Taxes, please contact the Comptroller of Maryland (http://www.marylandtaxes.gov) and/or a licensed tax professional.

Part 1 - Energy Storage System Location

Please select the property type where the system has been installed.
Has the energy storage system been installed at a Commercial or Residential property?*

Commercial Property (30 percent of total installed costs up to $150,000)Residential Property (30 percent of total installed costs up to $5,000)
Property Definitions “Commercial Property” means nonresidential property with a commercial, industrial, or government use as outlined in the definition for the Commercial Clean Energy Grant Program (c-CEGP) in COMAR 14.26.04.02 and includes multifamily properties. “Residential Property” means property, including a single-family home and an individual unit of a multifamily property or mixed use facility, that has the purpose of serving as a primary residence, as outlined in the Residential Clean Energy Grant Program (r-CEGP) in COMAR 14.26.04.02

Part 2 - Application Checklist

Before starting the application, please verify you have all of the documents listed in Step 2 since you will be required to submit them with the application. NOTE: Failure to submit these required documents may result in your application being being delayed or rejected.
Step 1: Residential Eligibility
Step 1: Commercial Eligibility
Step 2: Verify that you have the following documents ready to upload which demonstrate the energy storage system has been installed and is operational.
If any information is deemed personally identifiable, confidential or proprietary, please contact MEA at energystorage.mea@maryland.gov to identify another way of securely transferring this information).

Part 3 - Authorized Applicant
The Authorized Applicant Signature Form (“the Form”) is only required if an energy storage installation company (third-party contractor) is submitting the application on behalf of its Customer (Property Owner). If that is the case, please complete this form and include it with your application submission. Please ensure all pages of the form are included with the application submission. The form must be signed by both the third-party contractor and the property owner. Incomplete forms will not be accepted.

Download: Authorized Applicant Signature Form
Name of Authorized Representative

First Name Last Name
Position Title of Authorized Representative
Name of Energy Storage Installation Company
Phone Number of Authorized Representative

Area Code Phone Number
Email of Authorized Representative
example@example.com
Address of Authorized Representative

Street Address

Street Address Line 2

City State / Province

Postal / Zip Code
Upload Authorized Applicant Signature Form
The Authorized Applicant Signature Page must be signed by both the Contractor and the Property Owner.

Part 4 - Property Information
Business Name*
Full Name of Property Owner*

First Name Middle Initial Last Name Suffix
Address*

Street Address

Street Address Line 2

City State

Zip Code
Contact Name*

First Name Last Name
Phone Number*

Area Code Phone Number
Email*
example@example.com
Estimated Annual Gross Income of Property Owner*
Estimated Annual Gross Income of Business*
Estimated Annual Maryland State Income Tax Liability of Property Owner*
Estimated Annual Maryland State Income Tax Liability of Business*
US Congressional District Number***
(Energy Storage Location Address)
Maryland Legislative District Number***
(Energy Storage Location Address)
**If You Do Not Know Your Congressional or Maryland Legislative District, Please Look It Up Here: http://mdelect.net

Part 5 - Contractor Information

(Developer or Installer of the energy storage system)
Business Name*
Business Address*

Street Address

Street Address Line 2

City State

Zip Code
Contact Name*

First Name Last Name
Contact Title/Position*
Phone Number*

Area Code Phone Number
Email*
example@example.com

Part 7 - Renewable System Information

Information about a renewable energy system paired with an energy storage system. The energy storage system is not required to be paired with a renewable energy system.
Is the energy storage system with a renewable energy system? Please check all that apply.*

Solar Photovoltaics (PV)Wind TurbineNot Applicable
Total Capacity of Renewable Energy System (kW)*
Ownership Model of Renewable Energy System*
Have you applied for a solar rebate from the Maryland Energy Administration's Clean Energy Rebate Program (CERP)?*

YesNo
More information about the Clean Energy Rebate Program can be found at the links below. Residential Clean Energy Rebate Program (R-CERP) Commercial Clean Energy Rebate Program (C-CERP)

Part 8 - Tax Credit Information

Please make sure the costs associated with your energy storage system match the dollar amounts on your invoice/receipt and electrical/building permits. Do not include costs associated with a paired renewable energy system (e.g. solar) paired with the energy storage system, if applicable. All costs should be recorded in US Dollars.
1. Cost of the Energy Storage System*
(ie - battery system)
2. Maryland Sales Tax *
(Question 1 multiplied by 0.06 (six percent))
3. Cost of Electrical Upgrades*
(Wiring, Panel, Inverters, Electrical Gateway, and etc.)
4. Cost of Installation*
5. Cost of Permitting*
6. Total cost *
(Sum of Questions 1, 2, 3, 4, and 5)
7. Calculated Tax Credit *
(Question 6 multiplied by 0.30 (30 percent) up to at $150,000 for commercial systems)
7. Calculated Tax Credit*
(Question 6 multiplied by 0.30 (30 percent) up to at $5,000 for residential systems)
How did you hear about the Program?
Where did you learn about the Maryland Energy Storage Income Tax Credit Program? Please select all that apply.*

Maryland Energy Administration websiteNews or trade pressEnergy storage InstallerAdvertisementSocial MediaWord of Mouth

Part 9 - Documentation & Attachments

Please upload documentation verifying that the energy storage system has been installed and is operational
Required Materials
All Invoices Paid to Contractor

Upload Document
An itemized invoice showing that the energy storage system is paid in full (i.e., with a zero balance). The itemized invoice shall include a cost breakdown (e.g., when applicable, the energy storage equipment itself, labor/delivery/installation costs, additional electrical work/equipment, permitting costs, sales tax, etc.) of applicable costs for the energy storage system installation. All itemized invoices must be provided if there are multiple. Please ensure the costs associated with the energy storage system listed above are clearly separated from costs asociated with a renewableenergy system (e.g., solar photovoltaic), if applicable. If there isdiscrepancy between the itemized invoice and the application, MEA will defer tothe invoice and amend the application for the purposes of recalculating the taxcredit certificate Cancelof
Local Electrical and/or Building Permits

Upload Document

Cancelof
Final Inspection Approvals

Upload Document
Copy or Picture Cancelof
Equipment Certifications by a Nationally Recognized Testing Laboratory (NRTL)

Upload Document

Cancelof
Product Specification and/or Cut Sheets

Upload Document

Cancelof
Pictures of the Installed and Commissioned Energy Storage System

Upload Document

Cancelof
Proof of primary residence

Browse Files
https://sdat.dat.maryland.gov/RealProperty/Pages/default.aspx Cancelof
Additional Materials (Optional)
Any Performance Testing Documentation

Upload Document

Cancelof
Additional Documentation

Upload Document

Cancelof

Part 10 - Terms of Agreement

Applicants must certify under penalty of perjury, to the best of their knowledge, the information provided in the Application submission and all the attachments are complete, accurate, and true. Applicants mustfurther certify they are authorized to submit the Application on behalf of the property owner and agree to the terms and conditions stated below.

Terms, Conditions, and Certification
1. The Maryland Energy Administration (MEA) may award up to $750,000 of tax credit certificates for Tax Year 2023 on a first-come, first-served basis while funding is available.

2. Tax credit certificates are calculated as the lower amount of 30 percent of total installed costs of the energy storage system, up to $5,000 for a residential property and up to $150,000 for a commercial property.

3. MEA will not accept applications for Tax Year 2023 after January 15, 2024 at 5:00 PM ET.

4. MEA will not accept missing documents or information for tax credit applications on file for the Tax Year 2023 after January 20, 2024 at 5:00 pm ET.

5. Submission of an application does not guarantee the applicant will receive a tax credit certificate.

6. The total amount of tax credits available is limited. The incentive is structured as outlined above in award formula, and in the Maryland Energy Storage Income Tax Credit Program documents in accordance with the Annotated Code of Maryland Article - Tax - General §10–719 and Code of Maryland Regulations (COMAR) 14.26.07.

7. MEA may require applicants to submit personal information which provides proof of the applicant’s identity, property ownership, and primary residence before issuing an energy storage tax credit certificate. Failure to submit these documents, if requested, in a timely manner may impact your success in being awarded an energy storage tax credit certificate. Applicants have the right to inspect, amend, or correct personal records created by MEA containing such personal information. MEA, subject to the Maryland Public Information Act, does not share personal information with any other entity.

8. MEA and its representatives, subject to the Maryland Public Information Act, and other applicable laws, will not divulge confidential financial or commercial information or trade secrets. Applicants should identify information that contains trade secrets or confidential financial or commercial information

9. If an applicant fails to provide all information and/or documentation MEA deems necessary to process and evaluate the application in a timely manner, MEA shall notify the applicant in writing (including email) of the application’s missing information and/or documentation.

10. MEA will allow the applicant to submit any missing information or documentation within 45 calendar days of the date of the written correspondence (including email) notifying the applicant of the incomplete application, or by January 20, 2024, whichever occurs first.

11. Any applicant that fails to provide missing information or documentation to MEA within 45 calendar days, or by January 20, 2024, whichever occurs first, shall have their application rejected. Applicants may reapply to the program for the Tax Year 2023 energy storage tax credit if time allows and tax credits are still available.

12. It is within MEA’s sole discretion to determine if an energy storage system is eligible for a residential or commercial tax credit.

13. Energy storage system installations must be completed during Tax Year 2023 (January 1, 2023 - December 31, 2023). For an energy storage system to be considered “complete,” the system must be fully installed and pass all necessary permit inspections. If an energy storage system was installed in Tax Year 2022 (January 1, 2022 to December 31, 2022), but the final inspection approval or permission to operate from the utility was not received until Tax Year 2023, MEA will consider the energy storage system completed in Tax Year 2023, and the system will be eligible for a tax credit in Tax Year 2023.

A. If an energy storage system is installed but does not require a permit and inspection the applicant must provide documentation that shows the county or authority having jurisdiction waived the requirement.

14. Tax credits issued in Tax Year 2023 may not be claimed for energy storage systems completed before January 1, 2023 or after December 31, 2023.

15. If an initial Reserved Tax Credit Allocation is oversubscribed, but funding remains available in another Allocation, eligible applicants will be placed into a waitlist queue for Tax Year 2023. MEA will remove the Reserved Tax Credit Allocations on July 1, 2023. Applicants that were placed onto the waitlist will be issued tax credit certificates in the order MEA received the applications. If the program utilizes the full $750,000 of tax credit certificates for TY 2023 before July 1, 2023, applicants placed onto the waitlist in Tax Year 2023 cannot be carried over to Tax Year 2024. Under no circumstances will more than $750,000 in energy storage tax credit certificates be awarded for a single Tax Year.

16. Energy storage systems must meet the requirements of all Federal, State, and local laws, regulations, ordinances, and all other legally binding requirements, including applicable building codes as well as interconnection with the local electric utility and PJM Interconnection, if applicable.

17. Qualifying energy storage systems shall maintain certain safety criteria including:Utilize equipment certified by a nationally recognized testing laboratory (NRTL) that is listed on the US Department of Labor’s, Occupational Safety and Health
Be installed by a licensed professional (e.g., a licensed electrician for electrical systems); and be in compliance with all applicable building and fire codes.

18. Commercial taxpayers are limited to one energy storage tax credit certificate in Tax Year 2023.

19. Residential taxpayers are limited to one energy storage tax credit certificate, regardless of tax year.

20. Energy storage tax credit certificates are limited to one per property address, regardless of tax year.

21. Energy storage tax credits shall be applied to Maryland State Income Tax Liability.

22. Any unused amount of an energy storage tax credit may not be carried over to any other future tax year.

23. Energy storage tax credits are non-refundable.

24. Energy storage tax credits may not be claimed for the following types of energy storage systems:Mobile energy storage systems including, but not limited to, electric vehicles and recreational camping equipment. An electric hot water heater, except for those participating in a demand response program.

25. Energy storage systems that receive grant funding from the Game Changers Grant Program, the Resiliency Hub Grant Program, or any other program offered by MEA are ineligible to receive a tax credit certificate from this Program.

26. Applicants and recipients shall allow MEA or its representative(s) direct access to energy storage systems for which the applicant is requesting or has received an energy storage tax credit for the purposes of verifying all claims and representations.

27. MEA or its representative(s) may use photos and video of an applicant’s facility, and energy storage system data provided in the application package, for marketing, publicity, research and advertising purposes. MEA shall provide the applicant an opportunity to review, approve, and consult with MEA to assure that a written case study, photo or video taken of its facility will not disclose confidential personal or business information.

28. MEA and its contractors make no representation or warranty and assume no liability with respect to quality, safety, performance, or other aspect of any design, system, or appliance installed pursuant to this application, and expressly disclaim any such representation, warranty, or liability.

29. Program-Specific requirements are subject to change.

Under penalty of perjury, I certify that I have read, understand, and agree to the Maryland Energy Storage Income Tax Credit's General Terms and Conditions provided above.*

I agree

Submit Application
Under penalty of perjury, I certify to the best of my knowledge that the information provided in this submission and all of its attachments are complete, accurate, and true.*

I agree
Signature (Please Sign Your Name)*

Clear
Print Name*

First Name Middle Name Last Name Suffix
Date*

MonthDay Year
DateHour Minutes AM/PM Option

Experiencing Issues Submitting this Application Form?
If you have any difficulty submitting this Application Form, please do the following: Complete the Maryland Energy Storage Income Tax Credit Application Form. Click "Print Form" (Found above next to the "Submit Application" button.) Save a PDF copy of the completed application form to your computer. Email the PDF copy of the completed application form and all required attachements to energystorage.mea@maryland.gov. If issues persist, please contact Abigail Antonini at 410-537-4000 or energystorage.mea@maryland.gov.
Should be Empty:

Maryland Energy Storage Income Tax Credit

Part 1 - Energy Storage System Location

Part 2 - Application Checklist

Part 3 - Authorized Applicant

Part 4 - Property Information

Part 5 - Contractor Information

Part 6 - Energy Storage System Information

Part 7 - Renewable System Information

Part 8 - Tax Credit Information

How did you hear about the Program?

Part 9 - Documentation & Attachments

Required Materials

Additional Materials (Optional)

Part 10 - Terms of Agreement

Submit Application