<cite data-doc="COBRA Register Volume 04, Issue 02" data-path="05.01.13">This chapter</cite> establishes rules and regulations related to the Energy Conservation Devices Tax Credit, including: Application processes for obtaining the tax credit; Criteria for qualifying for the tax credit; How the tax credit may be applied to the City Real Property Tax on a dwelling; Transferability of the tax credit; Criteria for maintaining eligibility for the tax credit; and The effect of other tax credits on how the Energy Conservation Devices Tax Credit is applied to a dwelling.

In <cite data-doc="COBRA Register Volume 04, Issue 02" data-path="05.01.13">this chapter</cite>, the following terms have the meanings indicated. Terms Defined.“Application system” means the Department’s online tax credit application system. “The Department” means the Baltimore City Department of Finance. “Dwelling” has the meaning stated in <cite data-doc="City of Baltimore, Md., Code" data-path="|28|§10-31|(a)|(2)">Baltimore City Code Article 28, § 10-31(a)(2)</cite>. “Eligible costs” has the meaning stated in <cite data-doc="City of Baltimore, Md., Code" data-path="|28|§10-31|(a)|(3)">Baltimore City Code Article 28, § 10-31(a)(3)</cite>. “Energy conservation device” means the following, as defined in these regulations:A solar energy device; or A geothermal energy device. “Geothermal energy device” has the meaning stated in <cite data-doc="City of Baltimore, Md., Code" data-path="|28|§10-31|(a)|(4)">City Code Article 28, § 10-31(a)(4)</cite>. “Homeowner” has the meaning stated in Maryland <cite data-doc="Md. Code" data-path="gtp|9-105">Tax-Property Article, § 9-105 </cite>(a)(7). “Solar energy device” has the meaning stated in <cite data-doc="City of Baltimore, Md., Code" data-path="|28">City Code Article 28</cite>, § 10-31(a)(7). “Tax credit” means the Energy Conservation Devices tax credit described in <cite data-doc="City of Baltimore, Md., Code" data-path="|28|§10-31">City Code Article 28, § 10-31</cite>.

In General. In accordance with <cite data-doc="City of Baltimore, Md., Code" data-path="|28|§10-31">City Code Article 28, § 10-31</cite>, the Department shall grant the tax credit against the City property tax imposed on a dwelling to which a solar energy device or geothermal energy device is:Installed; and In use. Amount.The Department shall ensure the amount of the tax credit is the lesser of:Fifty percent of an eligible cost up to a maximum of $5,000; or Fifty percent of an eligible cost up to a maximum of $1,500, if the energy conservation device is installed exclusively to provide hot water for use in the dwelling. The Department shall ensure the amount of the tax credit applied in a tax year does not exceed the property tax imposed on the dwelling in that tax year.

The Department shall ensure the eligibility term of the tax credit is one tax year. The Department may not issue the tax credit until the tax credit application is approved. A homeowner shall be liable for applicable taxes due prior to receiving the tax credit.

Homeowner Eligibility. A homeowner shall be eligible for the tax credit if the homeowner:Obtains an energy conservation device through:Purchase; or Lease. Files a Maryland state income tax return as a resident of Baltimore City for the taxable year for which the tax credit is sought; and Submits a timely and complete application in accordance with <cite data-doc="COBRA Register Volume 04, Issue 02" data-path="05.01.13.07">Regulation .07 of this chapter</cite>. Dwelling Eligibility.To be eligible for the tax credit, a homeowner shall ensure a dwelling is:Located within the City of Baltimore; and The homeowner’s principal residence. The Department may deem a dwelling for which an application has been approved eligible for the tax credit starting with the first full-year tax bill issued after the date of the submission of a complete application.

A cost associated with installing an energy conservation device is incurred on the date that the cost became due. An applicant shall present documents showing that the cost was associated with installation of the energy conservation device and the date of installation.

To apply for the tax credit, a homeowner shall:Submit a complete application electronically via the application system located on the Department’s website within 12 months of incurring the eligible cost; and Include copies of the following with their application:Documentation showing the date of the acquisition and the date of the installation of the energy conservation device including a:Receipt; Paid invoice; Canceled check; or Lease agreement; A notarized affidavit stating that:The property is the homeowner’s principal residence; The property is expected to be occupied by the homeowner for more than six months of a 12-month period beginning with the date of finality for the tax year for which the credit is sought; and The costs submitted by the homeowner are related to the installation of the energy conservation device; A picture of the installed energy conservation device, including device labels. The homeowner shall be responsible for ensuring a working internet connection for the duration of application submission.

If a property is sold, the Department shall automatically transfer the credit to a subsequent homeowner, if the transfer occurs within the one-year credit eligibility period. The subsequent homeowner shall ensure that the requirements of <cite data-doc="COBRA Register Volume 04, Issue 02" data-path="05.01.13.09">Regulation .09</cite> are met for a transferred credit.

To remain eligible for the tax credit throughout the one-year period for which the credit is granted, the homeowner shall ensure:The property continues to be the homeowner’s principal residence; and The energy conservation device remains in use. If a property does not meet the continuing eligibility requirements, the Department shall remove the tax credit from the property’s account.

The Department shall make the calculation of the tax credit prior to the application of another tax credit awarded to the property under the Maryland State Tax-Property Article, §§ <cite data-doc="Md. Code" data-path="gtp|9-221">9-221</cite> and <cite data-doc="Md. Code" data-path="gtp|9-229">9-229</cite>. The Department shall calculate this tax credit after:The application of a tax credit awarded to the property under Maryland Tax-Property Article §§ <cite data-doc="Md. Code" data-path="gtp|9-104">9-104</cite> and <cite data-doc="Md. Code" data-path="gtp|9-105">9-105</cite>; and A real property tax credit other than the tax credits specified in <cite data-doc="COBRA Register Volume 04, Issue 02" data-path="05.01.13.10|A.">Regulation .10(A)</cite>.

When combined with other tax credits, the Department shall ensure the tax credit does not exceed the amount of City real property tax liability on the dwelling in that tax year. The Department may not award more than one tax credit authorized under Art. 28, §10-31 to a single dwelling.