# Montgomery County Code — Part II. Local Laws, Ordinances, Resolutions, Etc.

## Chapter 52. Taxation.

### Article X. Property Tax Credits

**Sec. 52-84. Real property tax credits for permanently and totally disabled homeowners.**

  (a)   Eligibility requirements. A property tax credit shall be allowed, upon the application of any homeowner, from total real property taxation upon the dwelling for which application for the tax credit is made; provided, that the homeowner meets the following conditions on or before July 1 of the taxable year for which a tax credit is sought:

    (1)   The homeowner is not yet sixty (60) years of age.

    (2)   The homeowner is receiving benefits as a result of a finding of permanent and total disability under the social security act or under the railroad retirement act or under the provisions of federal acts for members of the armed forces of the United States or by an agency of a municipal corporation, county, state or federal government or the District of Columbia; or

    (3)   The homeowner is not and has not been subject to a disability program of a government or public agency, and the homeowner has been found and certified permanently and totally disabled, and the finding and certification of total and permanent disability is reviewed and approved by the county.

  (b)   Definitions. For the purposes of this section, the following words and phrases shall have the meanings respectively ascribed to them by this subsection:

    Combined income. The combined gross income of all homeowners, if more than one (1), and all persons eighteen (18) years of age or older as of July 1 of the taxable year in which the credit is sought, actually residing in the same dwelling, except persons whose contributions, reasonably apportionable toward the cost of upkeep, maintenance and repair of the dwelling, are in the form of fixed rental charges.

    Combined net worth. The total net worth of all homeowners, if more than one (1), and all persons eighteen (18) years of age or older as of July 1 of the taxable year in which the credit is sought, actually residing in the same dwelling, except persons whose contributions, reasonably apportionable for the cost of upkeep, maintenance and repair of the dwelling, are in the form of fixed rental charges.

    Dwelling. The dwelling house of one (1) or more homeowners and the lot or curtilage where it is erected, which is used as the principal residence of that homeowner or homeowners. No dwelling shall be deemed a principal residence which is not actually occupied or expected to be actually occupied by the homeowner or homeowners for more than six (6) months of a twelve-month period, including the date of application for tax credit.

    Gross income. Total income from all sources for the calendar year immediately preceding the taxable year for which credit is sought, whether or not included in the definitions of gross income for federal or state tax purposes, including but not limited to benefits under the social security act or railroad retirement act as amended, gifts in excess of three hundred dollars ($300.00), alimony, support money, nontaxable strike benefits, public assistance received in cash grants, pensions or annuities, unemployment insurance benefits, and workmen’s compensation benefits. Gross income shall include the net income received from business, rental or other endeavors; but in no event shall a loss from business, rental or other endeavors be used in the determination of gross income.

    Homeowner. Every person who, by July 1 of the taxable year for which tax credit is sought, actually resides in a dwelling in which such person has a legal interest, including any life estate, whether as sole owner, joint tenant in common or tenant by the entireties, or through membership in a cooperative. A homeowner, otherwise eligible, may qualify for the credit if he does not actually reside in the dwelling for the required time period because of illness or need of special care. A homeowner or homeowners may claim credit on only one (1) dwelling. When any property which is owned by a person who is entitled to a tax credit under this section is sold to a purchaser, the tax credit shall be terminated as of the date of transfer of the property between the parties. The total amount of any tax credit shall be included in the amount of ordinary taxes which were paid by the seller of the property and which are adjusted at the time of settlement for the property between the seller and the purchaser. The seller of the property shall receive credit only for that proportion of the tax credit which his period of ownership of the property during the taxable year in which the transfer occurs bears to the entire taxable year. The remaining portion of the tax credit shall be paid by the seller to the county and shall be deposited into general funds of the county.

    Net worth. The sum of the values of assets, including but not limited to cash, savings accounts, stocks, bonds and other investments, less outstanding liabilities, plus the excess of current market value of real property owned over the outstanding indebtedness of each such property. The cash surrender value of life insurance policies and the fair market value of personal property are excluded.

    Total real property taxes. The total of all real property taxes, including state, county, municipal and special districts for which the homeowner has a real property tax liability on the dwelling for the taxable year. The real property tax liability shall be prior to any discounts for payment and shall be calculated on the assessed valuation of the dwelling or thirty thousand dollars ($30,000.00) of assessed valuation, whichever is less.

  (c)   Amount; application; appeal. A property tax credit, not to exceed seven hundred fifty dollars ($750.00), shall be allowed upon the application of any eligible homeowner, from total real property taxes upon the dwelling for which application for the tax credit is made. The tax credit shall be equal to the amount of total real property taxes in excess of a percentage of the gross income or combined gross income, as the case may be, of the homeowner. This percentage shall equal three (3) percent of the first three thousand dollars ($3,000.00) of combined income, four (4) percent of the next five thousand dollars ($5,000.00) of combined income, five (5) percent of the next four thousand dollars ($4,000.00) of combined income, seven (7) percent of the next three thousand dollars ($3,000.00) of combined income and nine (9) percent of all combined income in excess of fifteen thousand dollars ($15,000.00). The credit shall not be allowed to any homeowner whose net worth is in excess of one hundred fifty thousand dollars ($150,000.00) as of January 1 of the year in which the credit is sought. The percentage of the real property tax assessed by a cooperative against any member shall not exceed the rate of the amount the member paid for his membership to the total cost of all memberships at the time of assessment.

    (1)   The disabled homeowner may apply for the tax credit no later than September 1 of the taxable year in which the tax credit is sought, on a standard form to be provided by the director of finance. If the application has not been made on or before September 1, the tax credit shall not be allowed. After receipt and review of the application for tax credit as provided hereunder, the director of finance shall either approve or disapprove the application and shall notify the applicant in writing of such decision. If the application is approved, the director shall issue or mail to the homeowner a certificate setting forth the amount of the tax credit.

    (2)   The application for the tax credit shall be made under oath or affirmation that the matters and facts stated in the application are true to the best of the applicant’s knowledge, information and belief, including a statement that the applicant’s net worth, as defined herein, does not exceed one hundred fifty thousand dollars ($150,000.00). The applicant may be required to provide copies of income tax returns or other evidence of income, interest, dividends, rents, money paid or received or net worth to substantiate the application for the property tax credit.

    (3)   Any homeowner aggrieved by the decision of the director of finance shall have the right to appeal to the property tax assessment appeal board for the county, which appeal shall be in writing and shall set forth the reasons for the appeal and the grounds for the appeal. An appeal shall be filed with the property tax assessment appeal board within thirty (30) days from the date of the notice of decision by the director of finance. At any hearing proceedings shall be informal and any interested party shall have the right to submit oral or written testimony or documentary evidence without regard to technical rules of evidence.

  (d)   Additional calculations; funding. Beginning with the 1975-1976 taxable year and for each year thereafter, if the credit authorized under this section is less than the credit which was received in the 1974-1975 taxable year, the homeowner shall receive a credit which is the higher of that credit calculated under this section or on the basis of the law applicable to the 1974-1975 taxable year, using in these calculations the income applicable for the current year. The cost of the credit provided to the taxpayer for total real property taxes under this section shall be funded by the county.

  (e)   Applicability of State law. The minimum tax credit provided for disabled homeowners under this Section must not be less than the minimum tax credit in Section 9-102 of the Tax-Property Article of the Maryland Code.

**Sec. 52-85. Homeowners property tax credit.**

  (a)   Definitions. In this section, the following words have the meanings indicated.

    (1)   The following words have the meanings defined in Section 9-104 of the Tax- Property Article of the Maryland Code:

      (A)   combined income;

      (B)   dwelling;

      (C)   gross income;

      (D)   homeowner;

      (E)   home purchaser; and

      (F)   legal interest.

    (2)   Assessed value means the adjusted value to which the property tax rate is applied.

    (3)   Consumer Price Index means the Consumer Price Index for All Urban Consumers (CPI-U) for the Washington-Arlington-Alexandria Core Based Statistical Area (CBSA), as published by the United States Department of Labor, Bureau of Labor Statistics, or a successor index.

    (4)   Director means the Director of the Department of Finance or the Director’s designee.

    (5)   Final tax liability means the tax liability for any property tax on the real property of a dwelling less any property tax credit provided under Section 9-104 and any supplemental property tax credit provided under this section.

    (6)   Section 9-104 means Section 9-104 of the Tax-Property Article of the Maryland Code or any successor provision.

    (7)   Total real property tax means the product of the sum of all property tax rates on real property, including special service area rates, but not including State and municipal district rates, for the taxable year on a dwelling, multiplied by the lesser of:

      (A)   $375,000; or

      (B)   the assessed value of the dwelling reduced by the amount of any assessment on which a property tax credit is granted under Section 9-105; and reduced by and any “save harmless” credit mandated under Section 9-101 of the Tax-Property Article of the Maryland Code.

  (b)   General.

    (1)   The Director must provide to homeowners a County property tax credit to supplement the State property tax credit granted under Section 9-104.

    (2)   Except as otherwise expressly stated in this section or an executive regulation, all eligibility requirements, statutory definitions, restrictions, and application or other procedures which apply to the credit granted under Section 9-104 also apply to the County supplemental property tax credit.

    (3)   Eligibility. A property tax credit under this Section must not be granted to a homeowner:

      (A)   whose combined net worth exceeds $250,000 as of December 31 of the calendar year that precedes the year in which the homeowner applies for the property tax credit; or

      (B)   whose combined gross income exceeds $75,000 in that same calendar year.

  (c)   Amount.

    (1)   The County supplemental property tax credit is the total real property tax on a dwelling, less:

      (A)   the percentage of the combined gross income of the homeowner calculated under paragraph (2), and

      (B)   the property tax credit granted under Section 9-104.

    (2)   The allowable percentage of combined gross income is:

      (A)   0 percent of the first $25,000;

      (B)   2 percent of the next $7,500;

      (C)   5 percent of the next $10,000;

      (D)   6.5 percent of the next $10,000; and

      (E)   8 percent of any combined gross income over $52,500.

    (3)   The property tax credit for home purchasers is the amount of the credit as calculated under paragraph (1) multiplied by a fraction where the numerator of the fraction is the number of days in the taxable year that the home purchaser actually occupies or expects to actually occupy a dwelling in which the home purchaser has a legal interest, and the denominator is 365 days.

  (d)   Adjustments to amounts.

    (1)   Adjustments by Council resolution. The Council annually, by resolution adopted not later than June 1, may vary either or both:

      (A)   the specific dollar amount referred to in subsection (a)(7); or

      (B)   the allowable percentage of combined gross income under subsection (c)(2).

    (2)   Consumer price index adjustments.

      (A)   Effective July 1, 2026 and July 1 of each subsequent year, the Chief Administrative Officer must adjust each specific dollar amount under subsections (a)(7), (b)(3), and (c)(2).

      (B)   The Chief Administrative Officer must calculate each adjusted amount to the nearest multiple of $10.

      (C)   The adjusted amount must be equal to the current amount multiplied by the outcome of the most recent published Consumer Price Index at the time of the adjustment divided by the annual value of the Consumer Price Index from the year prior to the current year.

      (D)   The Chief Administrative Officer must, by March 1 of the year preceding an adjustment, publish the adjusted amounts:

        (i)   in the County Register; and

        (ii)   on the County website.

  (e)   Administration. Administrative duties are performed by the Director, and by the State Department of Assessments and Taxation as provided in Section 9-104 and Section 9- 215 of the Tax-Property Article of the Maryland Code. If a credit is granted under this section, a revised tax bill or a tax voucher may be used to adjust the final tax liability.

  (f)   Regulations. The County Executive may adopt regulations under Method (2) to administer this section.

  (g)   Penalties for false and fraudulent information. A person who knowingly submits a false or fraudulent application, or withholds information, to obtain a tax credit under this section has committed a Class A violation. In addition, the person must repay the County for all amounts credited and all accrued interest and penalties that would apply to those amounts as overdue taxes. The County may enforce this subsection by appropriate legal action. A person who violates this subsection is liable for all court costs and expenses of the County in any civil action brought by the County against the violator.

  (h)   Annual report. The Executive must submit an annual report to the County Council by March 15 of each year describing program participation in the current tax year by income of taxpayers, number and dollar value of tax credits granted under this section, administrative costs, and other relevant information. This report may be contained in the Executive’s recommended operating budget for the next fiscal year.

**Sec. 52-86. Credit to offset certain income tax revenues.**

  (a)   The Director of Finance must allow a credit against County real property taxes due in each tax year for each property that is an owner-occupied dwelling of a homeowner as defined in Md. Tax-Property Code § 9-105(a), as amended.

  (b)   The Director must not grant the credit if the Director finds that the property is not an owner-occupied property of a homeowner

  (c)   The County Council must set the amount or rate of the credit under this Section annually by resolution, adopted no later than the date the Council sets the property tax rates.  A public hearing must be held, with at least 15 days’ notice, before the Council adopts a resolution under this Section.  The amount or rate of the credit must, in the Council’s judgment, offset some or all of the income tax revenue resulting from a County income tax rate higher than 2.6%.  The Council must set the amount of the credit at zero for any tax year in which the rate of the County income tax does not exceed 2.6%.

  (d)   The Director must take all actions necessary to apply the credit to each eligible taxpayer.  A taxpayer need not file an application to receive the credit.  If a taxpayer after filing an application with the Director has been erroneously denied the credit, the taxpayer may appeal that denial to the Maryland Tax Court within 30 days after receiving a notice of denial from the Director.

**Sec. 52-87. Scenic Easement Tax Credit.**

  (a)   Definitions.

    Scenic easement shall, for the purpose of this article, be defined to mean a recorded easement creating, imposing or continuing an incorporeal right upon a corporeal right wherein a servitude is placed upon land in private ownership which establishes perpetual control in the grantee to maintain scenic views, natural condition, open spaces, green area, animal refuges or natural habitat or flora and fauna. Such easement shall be created by conveyance and acceptance thereof, under lawful authority in the grantee, to the United States, the state, the county, the Maryland-National Capital Park and Planning Commission or any agency or instrumentality of the aforesaid governmental units established by law.

  (b)   Tax credit generally.  A tax credit is hereby permitted to the owner of any land which is certified by the grantee of a scenic easement to be an “open space” or “open area” as defined by subsection (b), section 5-1201, of the Natural Resources article of the Annotated Code of Maryland, 1957 and which is subject to a scenic easement, as defined herein, created by the owner or his predecessors in title in accordance with the basic requirements and standards set forth herein. Such tax credit shall be computed by the director of finance of the county as a percentage of the taxes levied by the county council upon the value of land assessment, exclusive of any improvements thereon, which levy is made to appropriate the general funds of the county.

  (c)   Basic requirements.  To qualify for a tax credit, the following basic requirements must be met:

    (1)   The property subject to the easement shall not be used for any professional or commercial activities, except such as can be and are in fact conducted from a residential dwelling without alteration of the dwelling; provided, that tracts of land containing in excess of fifty (50) acres may be used for privately owned country clubs, commercial golf courses and golf driving ranges. Agricultural activities, other than timbering, shall be permitted on property subject to such easement.

    (2)   No advertising signs or billboards shall be displayed or placed upon the land, with the exception of professional name plates and signs larger than two (2) square feet advertising home occupations or products or the sale or lease of the lands.

    (3)   No mining or industrial activity shall be conducted on the lands.

    (4)   No tree larger than six (6) inches in diameter and thirty (30) feet in height shall be cut down without the written permission of the grantee or its authorized representative; except, that clearing such land for site improvement, road construction or removing trees for the purpose of protecting utility lines and to eliminate a hazard to persons or property may be exercised without prior permission if no more than ten (10) percent of such trees are to be cut on any acre.

    (5)   No dump of ashes, trash or any unsightly offensive material shall be placed upon the land; except, that in eroding areas of a drainage system where surface water runoff is destroying the natural ground cover, suitable heavy fill may be so placed as to control and prevent further erosion upon the approval of the grantee, provided such fill is covered by arable soil or humus.

    (6)   The land shall not be used as a site for any major public utility installations such as electric generating plants, electric power transmission lines, gas generating plants, gas storage tanks, microwave relay stations or telephone exchanges, except as may be approved by the grantee. Nothing in this subsection shall, however, be deemed to prevent the construction or maintenance on, over or under the lands of facilities usual to a residential neighborhood, such as telephone and electric lines, water mains, sewer mains and gas mains, pipes or conduits and necessary related equipment, together with such removal of trees as shall be required for such construction and maintenance.

  (d)   Standards and categories of credits.  If the easement meets the basic requirements set forth above and meets the standards set forth in one of the following two (2) categories, then such property may qualify for the appropriate tax credit:

    (1)   Underdeveloped land within designated parks or conservation areas.

      (A)   Amount of Credit. Land subject to an easement meeting the basic requirements, together with the standards set forth in this subsection, may be entitled to a tax credit of up to one hundred (100) percent.

      (B)   Standards.

        (i)   Location: The property may be of any size but must be within the boundaries of a park or conservation area as designated on a duly adopted master plan of the Maryland-National Capital Park and Planning Commission.

        (ii)   Use: Within the boundaries of the scenic easement, no improvement shall be erected or continued other than noncommercial recreational facilities consistent with the preservation of the property in an open and natural state.

    (2)   Land subject to purchase option.

      (A)   Amount of Credit. Land subject to an easement meeting the basic requirements, together with the standards set forth in this subsection, may be entitled to a tax credit of up to one hundred (100) percent.

      (B)   Standards.

        (i)   Location: The land must be located within park boundaries as designated on a duly adopted master plan of The Maryland- National Capital Park and Planning Commission.

        (ii)   Use: Such land shall have been made the subject of an option agreement whereby the owner agrees to sell or convey the subject property to any local, county, state or federal government or the Maryland-National Capital Park and Planning Commission in fee simple within a fixed period of time, not exceeding twenty (20) years, at a price less than or equivalent to the fair market value at the time of the execution of the option. Such option agreement shall contain such provisions as may be deemed necessary by the grantee to preserve the land in a natural state or condition.

  (e)   Determination and duration of tax credit.  The tax credit must be allowed as of the taxable year “date of finality” or “semi-annual date of finality,” as defined in Section 1-101 of the Tax-Property Article of the Maryland Code if the Council notifies the Director of Finance that the property, by reason of a conveyance, assignment, deed, or other instrument recorded among the land records of the County, is affected and servient to a scenic easement which:

    (1)   is irrevocable by its own terms;

    (2)   creates a perpetual servitude on the land described; and

  meets the basic requirements, together with the standards of one of the categories in paragraph (d).

The tax credit authorized under this Article remains in effect for all later tax levies made by the Council.

  (f)   Valuation, assessment, and condemnation.  The valuation and assessment of all property which is entitled to the credit herein allowed shall be made and accomplished in all respects as other real property subject to taxation in the county. In the event such property is even acquired by the exercise of the power of eminent domain, the fair market value of such property shall not be affected by its having been qualified for a tax credit; provided, that if the grantee of the easement purchased the same for a monetary consideration other than or in addition to the tax credit, then in such case the condemnation award shall be reduced by an amount equal to the additional consideration.

  (g)   Application for tax credit.

    (1)   The owner of such real property or his duly authorized agent must on or before 60 days before the annual date of finality or semi-annual date of finality, whichever may be applicable, file with the County Council a claim for such tax credit in such form as may be required by the Council. Any application must include a description of the property on which the scenic easement is to be granted and must be signed by all owners, holders of encumbrances, and other parties in interest. The County Council must determine whether the property conforms to and meets the basic requirements and standards of one of the categories provided in paragraph (d). If it does, the applicant must then submit a scenic easement deed and a certificate of title prepared by a member of the bar of the court of appeals of Maryland showing the effect of such easement on the land described therein. Any easement must not be preceded by any prior interest to secure a debt or otherwise which would affect the priority of the easement.

    (2)   If deemed necessary by the Council, a survey by a registered land surveyor or professional engineer may be required. If required, the survey must show the land described, the location of the improvements thereon, the area of land subject to the easement, and a site location sketch showing its relation to the geographical features which relate to its scenic and open space value. The expense of this survey and the title certificate may be assumed by the grantee or the County Council in its discretion, if a request is made therefor in the original application. The County Council must either accept the scenic easement and grant the tax credit or reject the application and deny the credit. If the Council accepts the easement, the tax credit becomes effective upon recordation of the deed in the land records of the County. The County Council must issue an appropriate notice to be delivered by the landowner to the Director of Finance.

  (h)   Interpretation.  This Article is intended to comply with the intent and purpose of Section 9-208 of the Tax-Property Article of the Maryland Code, and any inconsistency with that Section should be resolved in favor of that Section. If a Court of competent jurisdiction declares any part of this Article legally ineffectual, then the Council intends that the entire Article becomes ineffective. In any event, any tax credit granted under this Article must not be recovered unless that credit was procured by fraud, misrepresentation, or intentional mistake.

**Sec. 52-88. Historic Preservation Tax Credit.**

  (a)   Tax credit generally.  There is a tax credit against County real property taxes for certain expenses of a taxpayer after September 21, 1979, for restoration and preservation of certain properties of historic, architectural, archaeological or cultural value.

  (b)   Qualifications for tax credit.

    (1)   To qualify for the tax credit, the taxpayer must show that:

      (A)   the property is an historic site or in an historic district on a County of municipal master plan or zoning map;

      (B)   the expenses are:

        (i)   for work under an approved County historic area work permit or municipal certificate of approval; or

        (ii)   for ordinary maintenance expenses, as defined in guidelines adopted under section 24A-6, over $1,000;

      (C)   the work is done by a licensed contractor; and

      (D)   the taxpayer has paid for the work.

    (2)   A taxpayer must not receive a tax credit for new construction, including:

      (A)   a new structure on an historic site or in an historic district, or

      (B)   a new addition constructed as part of, or next to, an existing structure of historic, architectural, or cultural value, regardless of the architectural compatibility of the addition.

  (c)   Use of tax credit.

    (1)   The tax credit is 25% of the taxpayer’s qualified expenses under paragraph (b).

    (2)   The tax credit applies to the next tax year after the year in which the work or any part is completed. Any unused tax credit may be carried forward to as many as 5 subsequent tax years. However, if the property is removed as an historic site or excluded from an historic district on the applicable County or municipal master plan or zoning map, any unused tax credit must lapse.

  (d)   Application for tax credit; appeals.

    (1)   Application.

      (A)   A taxpayer must file an application for a tax credit with the applicable County or municipal historic preservation commission on forms approved by the County Director of Finance.

      (B)   An application must include receipts and an oath or affirmation by the taxpayer that the receipts are for qualified expenses under paragraph (b).

      (C)   An application must be filed by the first day of April of the year before the tax year in which a tax credit is used.

      (D)   The applicable County or municipal historic preservation commission must transmit all applications to the County Director of Finance with a certificate that the property is an historic site or in an historic district on the applicable County or municipal master plan or zoning map.

      (E)   The County Director of Finance may require additional information and documentation from the taxpayer, and may reject all or part of the claimed expenses for lack of adequate documentation or if the claimed expenses do not qualify under paragraph (b). The Director must notify the taxpayer of the Director’s decision on the application.

    (2)   Appeal.  Any taxpayer aggrieved by the decision of the County Director of Finance may appeal to the Maryland Tax Court.

An appeal must be filed within 30 days after the date of the notice from the County Director of Finance.

  (e)   Penalties.1

    (1)   A person must not knowingly file a false or fraudulent application to obtain a tax credit under this article. A violation of this section is class A violation.

    (2)   In addition, a taxpayer who violates this article must pay the County any taxes and interest offset by the tax credit, and the County’s fees and costs in any action to enforce this article.

  1Editor’s note—This section contains the amended text of former subsection (a) of § 52-45.

  (f)   Regulations.2  The County Executive may adopt regulations under method (2) to administer this article.

  2Editor’s note—This section contains the text of former subsection 52-46, which was the amended text of former subsection (b) of § 52-45.

**Sec. 52-89. Conservation Land Tax Credit.**

  (a)   Definitions.  In this Article, the following words and phrases have the following meanings:

    Conservation land means real property that is:

    (1)

      (A)   used to assist in the preservation of a natural area,

      (B)   used for the environmental education of the public,

      (C)   used to promote conservation generally, or

      (D)   used for the maintenance of:

        (i)   a natural area for public use; or

        (ii)   a sanctuary for wildlife; and

    (2)

      (A)   subject to a perpetual conservation easement donated to a land trust on or after July 1, 1991;

      (B)

        (i)   acquired by a land trust on or after July 1, 1991;

        (ii)   owned in fee by that land trust; and

        (iii)   subject to a letter of intent, agreement, or option agreement to convey the property to a government agency; or

      (C)   owned by the Potomac Conservancy.

    Land trust means a “qualified conservation organization” as defined in State law.

  (b)   Amount of credit.

    (1)   An owner of conservation land may receive a tax credit equaling 100 percent of any County real property tax imposed on the conservation land, not including any improvements.

    (2)   However, an owner must not receive a tax credit for any land which:

      (A)   is actively used for farm or agricultural purposes; and

      (B)   receives a reduced property tax assessment because of that use.

  (c)   Allowance and duration of tax credit.

    (1)   An owner of conservation land must apply for the tax credit under this Article to the Director of Finance by September 1 of any tax year for which the credit would apply, unless a credit already applies to that tax year.

    (2)   As part of the application, the owner must file with the Director documentation, including a copy of any conservation easement deed, letter of intent, agreement, or option agreement for reconveyance of the property, showing that the land qualifies as conservation land.

    (3)   The Director may allow a credit for:

      (A)   a single tax year;

      (B)   the duration of any conservation easement on the property; or

      (C)   the time the property is wholly owned by a land trust.

    (4)   If the ownership or status of any conservation land changes in a way that makes the land ineligible for a tax credit under this Article, the owner must promptly notify the Director of any such change. The Director then must cancel the tax credit, as of the first day of the next month after the land is no longer eligible for a credit, and collect from the owner a pro rata refund of any credit allowed for the current tax year.

    (5)   If a conservation easement referenced in Section 52-89(a)(2)(A) is terminated, or if a land trust sells conservation land subject to a resale agreement to any person other than a government agency or another land trust, the owner of the land must repay the County all credits allowed under this Article and interest computed at the rate applicable to unpaid taxes when the taxes were due.

  (d)   Administration of tax credit.

    (1)   The County Executive may adopt regulations under method (2) to administer this Article.

    (2)   The Executive must report on the number and dollar value of all applications submitted and tax credits granted under this Article. This information should be included as part of the Executive’s recommended budget and should cover the fiscal year before the fiscal year for which the budget is submitted.

    (3)   A denial of a tax credit may be appealed to the Maryland Tax Court.

    (4)   A person must not knowingly file a false or fraudulent application to obtain a tax credit under this Article. A violation of this Article is a Class A violation. In addition to any other applicable penalties, a person who violates this Article must pay the County any taxes and interest offset by the credit and the County’s fees and costs in any action to enforce this Article.

**Sec. 52-90. New Jobs Tax Credit and Enhanced New Jobs Tax Credit.**

  (a)   Tax credits.  The Director of Finance must allow a new jobs tax credit or an enhanced new jobs tax credit against the County property tax imposed on real property owned or leased by a business entity or its affiliate and on personal property owned by that business entity or its affiliate if the business entity qualifies for either credit under this Article.

  (b)   Definitions.  In this Article, the following words have the meanings indicated:

    Affiliate, Business Entity, New or Expanded Premises, New Permanent Full-Time Position, and Notification Date have the meanings defined in Section 9-230, Tax- Property Article, Maryland Code, or any successor provision.

    Finance Director means the Director of the Department of Finance or the Director’s designee.

    New Jobs Tax Credit means the credit granted under this Article to a qualified business entity against the County property tax imposed on the new or expanded premises and the personal property located on those premises.

    Enhanced New Jobs Tax Credit means the credit granted under this Article to a qualified business entity against the County property tax imposed on the new or expanded premises that qualify under state law for an enhanced new jobs credit and the personal property located on those premises.

  (c)   Eligibility for tax credit.

    (1)   To qualify for a new jobs tax credit under this Article, a business entity must, on or after July 1, 1998:

      (A)   construct, or expand by at least 5,000 square feet, premises in the County on which it conducts business by buying, building, or leasing new premises; and

      (B)   employ at least 25 persons in new permanent full-time positions located in the new or expanded premises in the County during a 24-month period when it occupies the new or expanded premises.

    (2)   To qualify and be certified for an enhanced new jobs tax credit under this Article, a business entity must, on or after December 31, 1998:

      (A)   notify the Finance Director as required under state law; and

      (B)   meet all requirements under state law to qualify for an enhanced new jobs tax credit.

    (3)   A business entity does not qualify for a new jobs tax credit or enhanced tax credit if:

      (A)   the business entity has moved the operations which are located on new or expanded premises from another county (including Baltimore City) in Maryland;

      (B)   the business entity or another taxpayer has been given a tax credit or exemption for the new or expanded premises during the same taxable year under any other state or County law;

      (C)   the new permanent full-time positions are solely or primarily involved in retail sales of goods or services, except when a small number of positions involved in retail sales are incidental to the primary purpose of a building;

      (D)   the business entity is a type of business entity that the County Council by resolution before the Notification Date has made ineligible for a new jobs tax credit or enhanced new jobs tax credit, or the new permanent full-time positions are a type of position that the Council by resolution before the Notification Date has made ineligible for a new jobs tax credit or enhanced new jobs tax credit, or the new or expanded premises are located in a geographic area that the Council by resolution before the Notification Date has made ineligible for a new jobs tax credit or enhanced new jobs tax credit; or

      (E)   the location of the new or expanded premises is inconsistent with any applicable land use master plan.

    (4)   To qualify for a credit against property tax imposed on personal property, a business entity must certify that the personal property is located on premises that qualify for a new jobs tax credit or enhanced new jobs tax credit under this Article.

  (d)   Amount of tax credit; pass-through to lessees.

    (1)   The new jobs tax credit that a taxpayer may claim against County property taxes under this Article is the following percentage of the property tax imposed on the assessment of the new or expanded premises:

      (A)   52% during the first and second taxable years in which a credit is allowed;

      (B)   39% during the third and fourth taxable years in which a credit is allowed; and

      (C)   26% during the fifth and sixth taxable years in which a credit is allowed.

After the sixth taxable year, the Finance Director must not allow a new jobs tax credit under this Article.

    (2)   The enhanced new jobs tax credit that a taxpayer may claim against County property taxes under this Article is 58.5% of the property tax imposed on the increase in assessment of:

      (A)   the new or expanded premises; and

      (B)   any substantially renovated real property adjoining or neighboring the new or expanded premises.  A renovation is substantial for purposes of this subsection if the renovation results in a complete rehabilitation of at least 50% of each building on the property.

The taxpayer may claim this credit in each of the first 24 taxable years after the Director certifies that the taxpayer is eligible for the credit.

    (3)   A lessor of real property must reduce the amount of taxes for which an eligible business entity is contractually liable under a lease or rental agreement by the amount of any tax credit allowed under this Article.

  (e)   Recapture of tax credit.

    (1)   A business entity which does not satisfy all applicable requirements under this Article to qualify for a tax credit during the three taxable years after any year when a credit was allowed must repay the tax credit to the County after receiving notice from the Finance Director that the credit must be repaid.

    (2)   Interest must accrue on any repayable tax credit at the rate established for overdue property taxes, beginning 30 days after the notice from the Finance Director.

    (3)   Any unrepaid tax credit is a lien on real and personal property owned by the business entity in the same manner as unpaid real property taxes under state and County law.

  (f)   Administration of tax credit.

    (1)   A business entity must apply for either tax credit on a form furnished by the Finance Director, and must state which tax credit it intends to request and when and how it expects to qualify for the credit.

    (2)   When a business entity believes it has met all requirements for the tax credit, it may apply for certification on a form furnished by the Director and must provide sufficient information to show that all requirements under this Article and applicable state law have been met.

    (3)   The Finance Director must:

      (A)   determine the eligibility of the business entity for the tax credit;

      (B)   notify the State Department of Assessments and Taxation that a business entity has been approved for the tax credit; and

      (C)   require submission of reports by the business entity during the three taxable years after any year when the tax credit was earned to verify that the business entity continues to satisfy all applicable requirements under this Article.

    (4)   A person who submits a false or fraudulent application, or withholds information, to obtain a tax credit under this Article has committed a Class A violation.  In addition, the person must repay the County for all amounts credited and all accrued interest and penalties that would apply to those amounts as overdue taxes.  A person who violates this subsection is liable for all court costs and expenses of the County in any civil action brought by the County against the violator.  The County may collect any repayable tax credit, and otherwise enforce this Article, by any appropriate legal action.

    (5)   The County Executive may adopt regulations under method (2) to administer this Article.

**Sec. 52-91. Brownfields Property Tax Credit.**

  (a)   Definitions.  In this Article, the following words have the meanings indicated.

    Corrective action plan means a corrective action plan for a Qualified Brownfields Site under Title 4 of the Environment Article of the Maryland Code.

    Director means the Director of the Department of Finance or the Director’s designee.

    Enterprise zone means an area designated under Article 83A, Section 9-103 of the Maryland Code, or any successor provision.

    Increased Property Tax Liability means the increase in the property tax levied on a Qualified Brownfields Site resulting from an increased assessment due to a voluntary cleanup of the Qualified Brownfields Site or due to a corrective action plan for the Qualified Brownfields Site. Increased Property Tax Liability includes increases in property taxes levied due to an increased assessment for additional improvements to a Qualified Brownfields Site. Increased Property Tax Liability is calculated after deducting any other property tax credit applicable to the Qualified Brownfields Site. For a Qualified Brownfields Site with a prior use value, the Increased Property Tax Liability must be determined as if the Qualified Brownfields Site had no use value limitation.

    Property tax means the total County real property tax levied on the Qualified Brownfields Site annually under the Tax-Property Article. Property tax does not include parking district and urban district taxes.

    Qualified Brownfields Site has the meaning given in Article 83A, Section 3-901 of the Maryland Code.

    Tax-Property Article means the Tax-Property Article of the Maryland Code.

    Tax year means the 12-months beginning July 1 and ending on June 30.

    Use value means a special value of land for assessment purposes specified in Sections 8-209 through 8-217 and 8-220 through 8-225 of the Tax-Property Article.

    Voluntary cleanup means a voluntary cleanup of a Qualified Brownfields Site under Title 7, Subtitle 5 of the Environment Article of the Maryland Code.

  (b)   Participation.  The County may participate in the Brownfields Incentive Program under Section 9-229 of the Tax-Property Article.

  (c)   Property tax credits.

    (1)   For each of the 5 tax years immediately after the first revaluation of a Qualified Brownfields Site after completion of a voluntary cleanup or corrective action plan, the Director must allow a property tax credit of 50% of the Increased Property Tax Liability for a Qualified Brownfields Site.

    (2)   For each of the 5 tax years immediately after the first revaluation of a Qualified Brownfields Site after completion of a voluntary cleanup or correction action plan, the Director must allow an additional property tax credit of 20% of the Increased Property Tax Liability for a Qualified Brownfields Site located in:

      (A)   an enterprise zone; or

      (B)   a neighborhood designated by the County Council for participation in the Neighborhood Business Development Program under state law.

  (d)   Applicability.  The tax credits in paragraph (c) apply for:

    (1)   5 tax years; or

    (2)   if the property is in an enterprise zone, 10 tax years.

  (e)   Contribution to Fund.  As provided in Subsection 9-229(e)(2) of the Tax-Property Article, for each tax year of the credit period the County must, after property taxes for a Qualified Brownfields Site have been paid, contribute to the Brownfields Revitalization Incentive Fund established under Maryland Code, Article 83A, Section 3-904. The contribution must be equal to 30% of the Increased Property Tax Liability of the Qualified Brownfields Site.

  (f)   Termination of credit.  A recipient of a property tax credit under this Article is no longer eligible if:

    (1)   the recipient of the property tax credit withdraws from the voluntary cleanup program under Section 7-512(A) or (B) of the Environment Article of the Maryland Code; or

    (2)   the Maryland Department of the Environment withdraws approval of a Response Action Plan or a Certificate of Completion under Section 7-512(E) and (F) of the Environment Article of the Maryland Code.

**Sec. 52-92. Property tax credit — senior citizens of limited income.**

  (a)   The Director of Finance must allow a tax credit each year against the general County tax and all special service area taxes imposed on any real property that is owned by, and is the principal residence of, an individual who:

    (1)   is at least 65 years old; and

    (2)   qualifies to receive either the state Homeowners’ Property Tax Credit or the County supplement to the Homeowners’ Property Tax Credit under Section 52-85, or both.

  (b)   For each taxable year, the credit under this Section equals 50% of the total state and County credit awarded for that tax year under state law and Section 52-85.

  (c)   The Director must apply this credit automatically each year to the property tax due from any eligible taxpayer.  A taxpayer need not file an application, other than the application filed to receive the Homeowners’ Property Tax Credit, to receive this credit.  To qualify for this tax credit, the taxpayer must show in that application that at least one individual who owns and resides in the applicable residence is at least 65 years old.

  (d)   The County Executive may issue regulations under method (2) to administer this tax credit.

**Sec. 52-93. Tax credit for certain nonprofit organizations.**

  (a)   The Director of Finance must grant a single tax credit against the amount of the ordinary County taxes or any other special charges or assessments levied against:

    (1)   the personal property owned by any nonprofit, nonstock cooperative housing corporation;

    (2)   leased real property and improvements in the County used exclusively as a theater by nonprofit community theatrical organizations under Titles 6 and 9 of the Tax-Property Article of the Maryland Code; and

    (3)   tangible personal property used to improve, replace, or maintain the roads, common areas, or other common facilities owned by a nonprofit organization, association, or foundation which was formed solely to improve, replace, and maintain the roads, common areas, or other common facilities established under the town sector or planned retirement community zones of Chapter 59 where the common facilities are dedicated for the use of all residents of the development without payment of fees or admissions for their use.

  (b)   The Director of Finance must administer the tax credits granted under Titles 6 and 9 of the Tax-Property Article of the Maryland Code.

  (c)   The County Executive may adopt regulations under method (2) to administer the tax credits consistent with Titles 6 and 9 of the Tax-Property Article of the Maryland Code.

  (d)   Each taxpayer entitled to a credit shall be given a notice of the credit at the time the tax bill is sent to the taxpayer. The credit may be applied for at any time up to October 1 of the taxable year; but if application has not been made on or before that date, the credit shall not be allowed. Application shall be made under oath or affirmation.

**Sec. 52-94. Day care property tax credit.**

  (a)   Credit for child care or day care provider.

    (1)   A taxpayer may receive a property tax credit against the general County tax and special service area taxes for an improvement on real property if the improvement is used exclusively for child care or day care services under state law as a:

      (A)   registered family child care home or large family child care home under Title 9.5, Subtitle 3 of the Education Article of the Maryland Code, as amended;

      (B)   licensed child care center under Title 9.5, Subtitle 4 of the Education Article of the Maryland Code, as amended;

      (C)   licensed day care center for the elderly under Title 14, Subtitle 2 of the Health – General Article of the Maryland Code, as amended; or

      (D)   licensed day care center for adults under Title 14, Subtitle 3 of the Health – General Article of the Maryland Code, as amended.

    (2)   For each improvement, the credit must not exceed in each year the lesser of:

      (A)   $10,000; or

      (B)   the amount of the general county tax and special service area taxes attributable to the improvement.

    (3)   The Department of Finance administers this subsection. A taxpayer must apply for the tax credit with the Department of Finance by April 1 to receive the credit in the next taxable year. The taxpayer must certify in writing that the child care or day care provider:

      (A)   is licensed or registered by the  State; and

      (B)   will accept  clients whose care is subsidized by the County, State, or federal government, if the child care or day care provider has space.

    (4)   A taxpayer must not receive a credit under this subsection if the real property qualifies for a credit under subsection (b).

  (b)   Credit for family child care home or child care center on business property.

    (1)   A taxpayer may receive a property tax credit against the general County tax and special service area taxes for an improvement on real property owned by a business with at least 25 employees if the improvement is used exclusively for child care services under state law as a:

      (A)   registered family child care home or large family child care home under Title 9.5, Subtitle 3 of the Education Article of the Maryland Code, as amended; or

      (B)   licensed child care center under Title 9.5, Subtitle 4 of the Education Article of the Maryland Code, as amended.

    (2)   For each improvement, the credit must not exceed in each year the lesser of:

      (A)   $10,000; or

      (B)   the amount of the general County tax and special service area taxes attributable to the improvement.

    (3)   The Department of Finance administers this subsection.  A taxpayer must apply for the tax credit with the Department of Finance by April 1 to receive the credit in the next taxable year.  The taxpayer must certify in writing that the child care or day care provider is licensed or registered by the State.

  (c)   Executive regulations.

The County Executive must adopt regulations under method (3) to implement this Section.

  (d)   Reports.

The County Executive must report annually to the County Council on the use of the day care and child care property tax credit.

**Sec. 52-95. Personal property tax—Research and development exemption.**

  (a)   Definitions. In this Section, the following words have the meanings indicated.

    (1)   Research and development means:

      (A)   basic and applied research in the sciences and engineering; and

      (B)   the design, development, and governmentally required pre-market testing of prototypes, products, and processes.

    (2)   Research and development does not include:

      (A)   market research;

      (B)   research in the social sciences or psychology and other nontechnical activities;

      (C)   routine product testing;

      (D)   sales services;

      (E)   technical and nontechnical services; or

      (F)   research and development of a public utility.

    (3)   Director means the Director of the Department of Finance or the Director’s designee.

  (b)   General. Any machinery, equipment, materials, and supplies consumed in or used primarily in research and development are exempt from the County property tax to the extent authorized in this section.

  (c)   Amount. The exemption is equal to the County property tax imposed on the assessment of the property which exceeds 25% of the original cost of the property.

  (d)   Applicability. The exemption applies to taxable years beginning July 1, 1996.

**Sec. 52-96. Property tax credit—Leased property—Religious organizations.**

  (a)

    (1)   This Section applies only where a religious organization is contractually liable as a lessee under a lease to pay real property taxes of the property.

    (2)   For purposes of this Section, the term “religious organization” means a religious organization that is certified under Section 501(c)(3) or (d) of the United States Internal Revenue Code.

  (b)   Beginning with the tax year starting on July 1, 1995, a tax credit may be granted to the lessor of real property against County ad valorem property taxes, including special service area taxes, up to the amount of property taxes levied by the County:

    (1)   for that portion of the property that is leased, occupied, and used by a religious organization during the tax year exclusively for:

      (A)   public religious worship;

      (B)   educational purposes; or

      (C)   office space necessary to support or maintain public religious worship or educational purposes; and

    (2)   for which the religious organization is contractually liable.

  (c)   The tax credit under this Section does not apply:

    (1)   to property that is leased, occupied, or used by the religious organization for the purpose of making a profit; or

    (2)   when the religious organization no longer occupies the property.

  (d)   The lessor of property eligible for a tax credit under this Section must reduce by the amount of the tax credit the amount of taxes for which the religious organization is contractually liable under the lease agreement with the lessor.

  (e)   If a religious organization no longer occupies property during a tax year for which a tax credit has been allowed, or if the organization no longer uses the property for the purposes listed in subsection (b)(1), the tax credit expires and the organization must immediately notify the Department.  The Department must then issue a bill for the additional tax due, which is the pro rata share of the credit for the remainder of the tax year.

  (f)

    (1)   The Department of Finance administers this Section.

    (2)   A taxpayer must apply for the tax credit by the first day of April which precedes the tax year in which the tax credit is used.  An application must be made on such forms as the Department of Finance prescribes.  The applicant must submit a copy of the lease agreement with the religious organization and any other supporting information or certification required by the Department of Finance.

    (3)   The County Executive must adopt regulations under method (2) for administration of this Section.

    (4)   The County Executive must report on the number and dollar value of all applications submitted and tax credits granted under this Section.  This information should be included as part of the County Executive’s recommended budget and should cover the fiscal year before the fiscal year for which the budget is submitted.

  (g)   A denial of a tax credit may be appealed to the Maryland Tax Court.

  (h)

    (1)   A person must not knowingly file a false or fraudulent application to obtain a tax credit under this Section.  A violation of this subsection is a Class A violation.

    (2)   In addition to penalties provided under paragraph (1) of this subsection, a person who violates this subsection must pay the County any taxes and interest offset by the credit, any other penalty due, and the County’s fees and costs in any action to enforce this subsection.

**Sec. 52-97.  Property tax credit for Audubon Naturalist Society.**

  The Director of Finance must allow a tax credit against 100 percent of the amount of the ordinary County taxes and special service area taxes levied against real or personal property owned by the Audubon Naturalist Society of the Central Atlantic States, Inc., that is used solely for:

  (a)   the environmental education of the public; or

  (b)   the maintenance of:

    (1)   a natural area for public use; or

    (2)   a sanctuary for wildlife.

**Sec. 52-98.  Property tax credit - fire sprinkler systems.**

  (a)   A taxpayer may receive a one-time property tax credit against the general county tax for any residential building in which a fire sprinkler system was not legally required to be installed, if an approved fire sprinkler system is installed on or after July 1, 2000.

  (b)   For each residential building where a sprinkler system is installed, the credit must not exceed the lower of:

    (1)   the total cost of installing the sprinkler system; or

    (2)   50 percent of the general county property tax attributable to the residential building.

  (c)   The Department of Finance must administer this credit and include with each residential property tax bill a notice of the availability of the credit and where to obtain more information.

  (d)   A taxpayer must apply for the tax credit in the year the sprinkler system is installed to receive the credit in that tax year or the next tax year.  The taxpayer must:

    (1)   show that the installed sprinkler system complies with codes and standards established by the State Fire Prevention Commission and any applicable County building and fire safety codes, and

    (2)   document the cost to the taxpayer of the sprinkler system.

  (e)   The County Executive may adopt regulations under method (2) to implement this Section.

  (f)   The Executive must report annually to the County Council on the use of this tax credit.

**Sec. 52-99. Property tax credit — arts and entertainment district.**

  (a)   In this Section the following words have the meanings indicated.

    Arts and Entertainment District, Arts and Entertainment Enterprise, and Qualifying Residing Artist are defined in Section 4-701 of Article 83A of the Maryland Code.

    Base year means the taxable year immediately before the taxable year in which a property tax credit under this section is granted.

    Base year value means the value of the property used to determine the assessment on which the property tax was imposed for the base year.  Base year value does not include any property first assessed in the base year.

    Eligible assessment means the difference between the base year value and the actual assessed value for the applicable taxable year in which the tax credit under this section is granted.

  (b)   The Director of Finance must allow a tax credit, as authorized by state law, to a taxpayer against the County property tax imposed on a manufacturing, commercial, or industrial building that:

    (1)   is located in an arts and entertainment district; and

    (2)   is wholly or partially constructed or renovated to be capable for use by a qualifying residing artist or an arts and entertainment enterprise.

  (c)   A tax credit granted under this Section applies for 10 years, as provided in subsection (d), for that portion of the building that is used by a qualifying residing artist or an arts and entertainment enterprise.

  (d)   The Director must calculate a tax credit allowed under this Section as follows:

    (1)   Except for properties allowed an Enterprise Zone Tax Credit, the amount of the tax credit under this Section is the following percentage of the amount of property tax imposed on the eligible assessment of the property entitled to the credit:

      (A)   80% in each of the first 5 taxable years after the calendar year when the property initially is entitled to the credit;

      (B)   70% in the 6th taxable year;

      (C)   60% in the 7th taxable year;

      (D)   50% in the 8th taxable year;

      (E)   40% in the 9th taxable year; and

      (F)   30% in the 10th taxable year.

    (2)   For properties allowed an Enterprise Zone Tax Credit, the amount of the tax credit under this Section is 20% of the amount of property tax imposed on the eligible assessment of the property entitled to the credit for each of the 10 taxable years after the calendar year when the property initially is entitled to the credit.  The credit under this Section is in addition to the Enterprise Zone Tax Credit.

**Sec. 52-100. Property tax credit — surviving spouse of law enforcement officer or rescue worker.**

  (a)   The Director of Finance must allow a tax credit against the County property tax imposed on a dwelling that is owned by a surviving spouse of a fallen law enforcement officer or fallen rescue worker if the Director of Finance certifies that the taxpayer was qualified under State law for the credit before the end of the taxable year.

  (b)   The amount of the credit is 100 percent of the County property tax due from the taxpayer, subject to any other limits in State law.

  (c)   The County Executive may issue regulations under method (2) to administer this tax credit.

  (d)   In this Section:

    (1)   “dwelling”, “surviving spouse”, “fallen law enforcement officer”, and “fallen rescue worker” have the meanings provided in the State law authorizing this property tax credit;

    (2)   a qualified surviving spouse is deemed to “own” a dwelling if the surviving spouse has or shares any legal responsibility to pay State or County property tax on the dwelling;

    (3)   “law enforcement officer” means an individual who is authorized by law to make arrests in an official capacity as a member of any local, state, or federal government law enforcement agency; and

    (4)   “rescue worker” means an individual who is a member of any public, private, or volunteer fire, rescue, or emergency medical service.

**Sec. 52-101. Home computer telecommuting incentive.**

  (a)   An employer may receive an annual tax credit against the County personal property tax for the purchase of a new home computer or new laptop computer to establish a new off- site employee workstation, if the computer is purchased after December 31, 2005.  This tax credit does not apply to the operating personal property of a public utility.

  (b)   The amount of the tax credit must not exceed 50% of the cost of each new home computer or new laptop computer.  The aggregate tax credit allowed for any taxpayer in any tax year must not exceed $2,000.

  (c)   The Department of Finance must administer this credit.  The Department must allow each tax credit in the order in which the Department receives the application for the credit.

  (d)   The total amount of credits allowed in each tax year must not exceed:

    (1)   $100,000 in 2006;

    (2)   $175,000 in 2007; and

    (3)   $250,000 in 2008.

Starting in 2009, the County Council must set the total amount of credits allowed in each future tax year by resolution.  If the Council takes no action for any year, the amount allowed for the prior year also applies to that year.

  (e)   An employer is eligible for and must apply for the tax credit within 12 months after a new computer purchase.  The tax credit must be applied in the tax year of the purchase or the following tax year.  The employer must:

    (1)   show that the computer will be used for telecommuting;

    (2)   affirm that the employee works at home at least 78 days per calendar year or an alternative minimum number of days set by regulation; and

    (3)   document the date of purchase and the cost of the computer.

  (f)   The County Executive must adopt regulations under method 2 to implement this Section.

  (g)   The County Executive or a designee must report annually to the County Council on the use of the tax credit and provide information on the number of employees telecommuting under this credit.

**Sec. 52-102. Property tax credit — nonprofit swim clubs.**

  (a)   The Director of Finance must allow a tax credit each year against the general County tax and all special service area taxes imposed on a nonprofit swim club that uses its facility exclusively to provide a recreational outlet for a local community.

  (b)   For each taxable year, the Director must calculate the amount of the credit so that the credit equals the property tax owed.

  (c)   The County Executive may issue regulations under method (2) to administer this tax credit.

**Sec. 52-103. Property tax credit — energy and environmental design.**

  (a)   Definitions.  In this Section the following words have the meanings indicated:

    (1)   “Covered building” means a newly constructed or extensively modified non- residential or multi-family residential building that has or will have at least 10,000 square feet of gross floor area.

    (2)   “Extensively modified” means any structural modification which alters more than 50% of the building’s gross floor area, as indicated on the application for a building permit. Extensively modified does not include any modification that is limited to one or more of the following building systems: mechanical; electrical; plumbing; heating, ventilation, and air conditioning (HVAC); and fire protection.

    (3)   “High performance building” means:

      (A)   A covered building that achieves:

        (1)   A gold or platinum rating from the USGBC for LEED-NC, LEED-CS, or LEED-EB; or

        (2)   An energy and environmental design standard that the Director of the Department of Permitting Services finds is equivalent to a gold or platinum rating from the USGBC for LEED-NC, LEED- CS, or LEED-EB; and

      (B)   Any other building that achieves:

        (1)   A silver, gold, or platinum rating from the USGBC for LEED- NC, LEED-CS, or LEED-EB; or

        (2)   An energy and environmental design standard that the Director of the Department of Permitting Services finds is equivalent to the silver, gold or platinum rating from the USGBC for LEED- NC, LEED-CS, or LEED-EB.

    (4)   “LEED-CS” means the Leadership in Energy and Environmental Design - Core and Shell rating system administered by the USGBC.

    (5)   “LEED-EB” means the Leadership in Energy and Environmental Design - Existing Building rating system administered by the USGBC.

    (6)   “LEED-NC” means the Leadership in Energy and Environmental Design - New Construction rating system administered by the USGBC.

    (7)   “Property tax” means the general County tax and all special service area taxes.

    (8)   “USGBC” means the US Green Building Council.

  (b)   Credit.  Subject to the restrictions in subsections (c), (d), and (e), the Director of the Department of Finance must allow a tax credit each eligible year against the property tax imposed on a high performance building.

  (c)   Application and sunset dates.  To qualify for a tax credit under this Section, a taxpayer must submit an application of intent to apply for the credit by January 1, 2022 and either:

    (1)   for LEED-EB project certification, receive LEED-EB project certification for an eligible LEED-EB building and submit an application to the Director by January 1, 2023; or

    (2)   for LEED-CS or LEED-NC certification, receive a building permit for an eligible LEED-CS or LEED-NC building and submit an application to the Director by January 1, 2024.

  (d)   Amount of credit.

    (1)   For a covered building, the amount of the credit is:

      (A)   25% of the property tax owed on the building for 5 years, if the building achieves a gold rating for LEED-NC or LEED-CS or an equivalent standards;

      (B)   75% of the property tax owed on the building for 5 years, if the building achieves a platinum rating for LEED-NC or LEED-CS or an equivalent standard;

      (C)   10% of the property tax owed on the building for 3 years, if the building achieves the gold rating for LEED-EB or an equivalent standard; or

      (D)   50% of the property tax owed on the building for 3 years, if the building achieves the platinum rating for LEED-EB or an equivalent standard.

    (2)   For any other building, the amount of the credit is:

      (A)   25% of the property tax owed on the building for 5 years, if the building achieves a silver rating for LEED-NC or LEED-CS or an equivalent standard;

      (B)   50% of the property tax owed on the building for 5 years, if the building achieves a gold rating for LEED-NC or LEED-CS or an equivalent standard;

      (C)   75% of the property tax owed on the building for 5 years, if the building achieves a platinum rating for LEED-NC or LEED-CS or an equivalent standard;

      (D)   10% of the property tax owed on the building for 3 years, if the building achieves the silver rating for LEED-EB or an equivalent standard;

      (E)   25% of the property tax owed on the building for 3 years, if the building achieves the gold rating for LEED-EB or an equivalent standard; and

      (F)   50% of the property tax owed on the building for 3 years, if the building achieves the platinum rating for LEED-EB or an equivalent standard.

  (e)   Annual limits.

    (1)   Subject to the annual limits in paragraph (2) and the carryover rules in paragraph (3), the Director must grant credits in the order in which the Department of Finance receives complete applications.

    (2)   During any fiscal year the total credits granted to:

      (A)   All buildings under this Section must not exceed $5 million.

      (B)   Buildings that achieve a silver rating or equivalent standard must not exceed $1.5 million; and

      (C)   Buildings that achieve a gold rating or equivalent standard must not exceed $2.5 million.

    (3)   A complete application that, if granted, would cause any of the limits set in paragraph (2) to be exceeded, must be granted in the next fiscal year or years based on the order in which the Department of Finance received the application.

  (f)   Regulations. The County Executive may issue regulations under method (2) to administer this tax credit.

**Sec. 52-103A. Property tax credit — energy conservation devices for existing energy-efficient buildings.**

  (a)   Intent.  The intent of this Section is to:

    (1)   encourage building owners to increase the energy performance of existing buildings;

    (2)   incentivize building owners to reduce the energy and climate impacts of existing buildings, as the built environment generates more than half of the County’s measured community-wide greenhouse gas emissions;

    (3)   advance the County’s aggressive climate goals of an 80 percent reduction in greenhouse gas emissions by 2027 and zero emissions by 2035;

    (4)   institute regular review of the tax credits outlined in this Section to ensure that they are meeting the goals under paragraphs (1) through (3); and

    (5)   implement tax credits under Sections 9-203 and 9-242(a) of the Tax-Property Article of the Maryland Code, as amended.

  (b)   Definitions.  In this Section the following words have the meanings indicated:

    Accredited building professional means an individual that holds a valid and current credential from a building certification organization.

    Baseline ENERGY STAR Score means the ENERGY STAR score of a building calculated over any consecutive 12-month period when the scored building is at least 50 percent occupied.

    BRE Global means the Building Research Establishment Global.

    BREEAM means the Building Research Establishment Environmental Assessment Method rating system administered by BRE Global.

    Building certification organization means a third-party organization that administers the rating systems identified in this Section.

    Building Sustainability Tax Credit is the property tax credit received for earned building certifications described in this Section.

    Director means the Director of the Department of Finance or the Director’s designee.

    Energy conservation device means any equipment, device, or material that reduces the demand for conventional fuels or increases the efficiency of these fuels, but is not a standard household appliance, including:

    (1)   insulation in any wall, roof, floor, foundation, or heating and cooling distribution system;

    (2)   a storm window or door, multi-glazed window or door, heat-absorbing or heat-reflective glazed and coated window and door system, or additional glazing, reduction in glass area, and other window and door system modification that reduces energy consumption;

    (3)   an automated energy control system;

    (4)   a heating, ventilating, or air-conditioning and distribution system modification or replacement;

    (5)   caulking, weather-stripping, and air sealing;

    (6)   replacement or modification of a lighting fixture to reduce the energy use of the lighting system;

    (7)   an energy recovery system;

    (8)   a day lighting system;

    (9)   a measure that reduces the usage of water or increases the efficiency of water usage; or

    (10)   any other installation or modification of equipment, device, or other material intended to decrease energy consumption.

    Energy-efficient building means a non-residential or multi-family residential building that: (1) has or will have at least 10,000 square feet of gross floor area; (2) has received a Certificate of Occupancy from the Department of Permitting Services; (3) has achieved at least a minimum 50 percent occupancy rate for at least 12 consecutive months; and (4) has demonstrated energy improvements consistent with the requirements of this Section.

    Energy Reduction Tax Credit is the property tax credit received for energy performance improvements described in this Section.

    ENERGY STAR Data Verification Checklist means a report generated in the ENERGY STAR Portfolio Manager tool to document property use details and energy consumption.

    ENERGY STAR Portfolio Manager means the no-cost web-based energy management tool developed and maintained by the U.S. Environmental Protection Agency to track and assess building energy performance.

    ENERGY STAR Score means the numerical measure of a building’s energy use generated through the use of ENERGY STAR Portfolio Manager.

    ENERGY STAR score metric reference data means the market data used by the U.S. Environmental Protection Agency to generate the ENERGY STAR Score.

    Energy Use Intensity or EUI refers to the amount of energy used in a building per square foot per year.

    Equity Emphasis Area means an area identified as an equity emphasis area by National Capital Region Transportation Planning Board.

    Improved ENERGY STAR Score means the ENERGY STAR score of a building calculated within a consecutive 12-month period when the scored building is at least 50 percent occupied, demonstrating energy savings resulting from the use of a qualifying energy conservation device.

    LEED means the Leadership in Energy and Environmental Design rating system administered by the USGBC.

    Occupancy means the percentage of a building that is occupied and operational.

    Property tax means the general County property tax and all special service area taxes.

    USGBC means the United States Green Building Council.

  (c)   Credit.  The Director must allow a tax credit each eligible year against the property tax imposed on an energy-efficient building under this Section.

  (d)   Application.  An application by the owner of an energy-efficient building for a tax credit must be in the form prescribed by the Director and include:

    (1)   a description and installation date of the energy conservation device installed in the building;

    (2)   the ENERGY STAR Portfolio Manager Data Verification Checklists documenting the baseline and improved (within the past year) ENERGY STAR scores of an existing energy-efficient building, signed by an accredited building professional; and

    (3)   if the Building Sustainability Tax Credit is sought, verified documentation demonstrating qualification within the past year for the Building Sustainability Tax Credit in subsection (f).

  (e)   Energy Reduction Tax Credit authorized under Section 9-203 of the Tax-Property Article of the Maryland Code.

    (1)   An energy-efficient building may receive an Energy Reduction Tax Credit for achieving energy use reductions under this subsection and, if that credit is granted, may receive:

      (A)   an additional Building Sustainability Tax Credit under subsection (f); and

      (B)   an expanded credit under subsection (g) for buildings located in Equity Emphasis Areas.

    (2)   For the Energy Reduction Tax Credit, the percentage of the annual County property tax credit, awarded for 2 years, is calculated by subtracting an energy-efficient building’s 12-month baseline ENERGY STAR score from the improved 12-month ENERGY STAR score, then multiplying the difference by the multiplier below based on the improved ENERGY STAR score:

      (A)   if the improved ENERGY STAR score falls between 1-24, multiply the difference by 1.0;

      (B)   if the improved ENERGY STAR score falls between 25-49, multiply the difference by 1.5;

      (C)   if the improved ENERGY STAR score falls between 50-74, multiply the difference by 2.0; or

      (D)   if the improved ENERGY STAR score falls between 75-100, multiply the difference by 2.5.

    (3)   Baseline and Improved ENERGY STAR Score 12-month time periods must not:

      (A)   overlap;

      (B)   include the energy conservation device installation period; or

      (C)   be more than 6 calendar years apart.

    (4)   The Baseline ENERGY STAR Score 12-month time period must not begin earlier than August 26, 2018. Baseline and Improved ENERGY STAR Score 12-month time periods must use the same ENERGY STAR score metric reference data.

    (5)   If a building is not able to earn the ENERGY STAR score due to the property use type, the Director may accept the USGBC alternative compliance path for Energy Use Intensity (EUI).

  (f)   Building Sustainability Tax Credit authorized under Section 9-242(a) of the Tax-Property Article of the Maryland Code.

    (1)   The owner of an energy-efficient building seeking the Building Sustainability Tax Credit must apply for that tax credit simultaneously with the Energy Reduction Tax Credit. The amount of the Building Sustainability Tax Credit must be added to the Energy Reduction Tax Credit. The Building Sustainability Tax Credit must be equal to:

      (A)   25% of the property tax owed on the building for 2 years, if the building achieves the most recent version available of LEED O+M Gold, BREEAM In-Use Excellent or an equivalent standard; or

      (B)   50% of the property tax owed on the building for 2 years, if the building achieves the most recent version available of LEED O+M Platinum, BREEAM In-Use Outstanding or an equivalent standard.

    (2)   To be approved for the Building Sustainability Tax Credit, an energy-efficient building must also be approved for the Energy Reduction Tax Credit.

  (g)   Expanded credit for buildings in Equity Emphasis Areas.

    (1)   The owner of an energy-efficient building located within an Equity Emphasis Area at the time of application may qualify for an expanded credit under this subsection.

    (2)   The owner must apply for a credit under this subsection simultaneously with an application for the Energy Reduction Tax Credit.

    (3)   The amount of the tax credit under this subsection must be added to the Energy Reduction Tax Credit for each year that the Energy Reduction Tax Credit is granted.

    (4)   The amount of the tax credit under this subsection must be equal to 10% of the annual property tax owed on the building.

  (h)   Total Maximum Credit.  The maximum credit that an energy-efficient building may be granted in any year must not exceed 100% of the building’s annual County property tax liability.

  (i)   Annual limits.  In any fiscal year, the Director must not award more than $5 million in total tax credits granted to all buildings under this Section.

  (j)   Reapplications.

    (1)   The owner of an energy-efficient building awarded a tax credit under this Section may reapply twice after the initial 2-year credit cycle. The maximum

number of applications a building owner may submit is 3, consisting of 1 initial application and 2 reapplications.

    (2)   For any reapplications, the building owner must submit a new Baseline ENERGY STAR Score for the building and describe the improvements performed to achieve the energy reduction. The Baseline ENERGY STAR Score for a reapplication may not be older than the 12-month time period used for the Improved ENERGY STAR Score for the previously approved tax credit. If an owner received a Building Sustainability Tax Credit based upon certification as LEED O+M Gold, BREEAM In-Use Excellent or an equivalent standard, the building must achieve a higher certification, such as LEED O+M Platinum, BREEAM In-Use Outstanding or an equivalent standard, upon reapplication.

  (k)   Credit Review.

    (1)   On or before October 1 of each year, the Director of Finance must prepare a report on the status of the Energy Reduction Tax Credit and Building Sustainability Tax Credit.

    (2)   Every 3 years, the County Executive must submit a report to the County Council reviewing the effectiveness of the Energy Reduction Tax Credit and Building Sustainability Tax Credit and make recommendations on any credit alterations.

  (l)   Regulations.  The County Executive may issue regulations under method (2) to administer the Energy Reduction Tax Credit and the Building Sustainability Tax Credit.

**Sec. 52-103B. Property tax credit — newly constructed energy-efficient buildings.**

  (a)   Intent.  The intent of this Section is to:

    (1)   encourage building owners to increase the energy performance of newly constructed buildings beyond current Building and Zoning Code requirements at time of application;

    (2)   incentivize building owners to reduce the energy and climate impacts of newly constructed buildings, as the built environment generates more than half of the County’s measured community-wide greenhouse gas emissions;

    (3)   advance the County’s aggressive climate goals of an 80 percent reduction in greenhouse gas emissions by 2027 and zero emissions by 2035;

    (4)   institute regular review of the tax credits outlined in this Section to ensure that they are meeting the goals under paragraphs (1) through (3); and

    (5)   implement a tax credit under Section 9-242(a) of the Tax-Property Article of the Maryland Code, as amended.

  (b)   Applicability.  The credit authorized by this Section applies to any tax year beginning January 1, 2022.

  (c)   Definitions.  In this Section the following words have the meanings indicated:

    BRE Global means the Building Research Establishment Global.

    BREEAM means the Building Research Establishment Environmental Assessment Method rating system administered by BRE Global.

    Building Code requirement means any code, standard, zoning ordinance, or other requirement related to commercial and multi-family building construction and permitting processes that applies to a newly constructed energy-efficient building.

    Equity Emphasis Area means an area identified as an equity emphasis area by National Capital Region Transportation Planning Board.

    New Building Sustainability Tax Credit is the property tax credit received for earned building certifications described in this Section.

    Director means the Director of the Department of Finance or the Director’s designee.

    Newly constructed energy-efficient building means:

      (A)   An unoccupied non-residential or multi-family residential “core and shell” building, of at least 10,000 square feet in gross floor area, with full mechanical systems, electrical distribution infrastructure, and a weather-sealed thermal envelope that has achieved substantial completion and received a Certificate of Occupancy from the Department of Permitting Services within the past year;

      (B)   A newly constructed non-residential or multi-family building, of at least 10,000 square feet in gross floor area, that has achieved substantial completion and received a Certificate of Occupancy from the Department of Permitting Services within the past year; or

      (C)   A non-residential or multi-family building, of at least 10,000 square feet in gross floor area, that has undergone a major renovation that warrants bringing the entire building up to current Building Code standards and has received final inspection and approval from the Department of Permitting Services.

    New Building Energy Reduction Tax Credit is the property tax credit received for energy performance improvements described in this Section.

    LBC or Living Building Certification means the Living Building Certification administered by the International Living Future Institute.

    LEED means the Leadership in Energy and Environmental Design rating system administered by the USGBC. In this Section, LEED building certification includes all eligible rating systems for newly constructed non-single-family-residential buildings.

    NGBS means the National Green Building Standard rating system administered by Home Innovation Research Labs.

    PassiveHouse means the PassiveHouse standard administered by PHIUS.

    PHIUS means the PassiveHouse Institute US.

    Property tax means the general County property tax and all special service area taxes.

    USGBC means the United States Green Building Council.

  (d)   Credit.  The Director must allow a tax credit each eligible year against the property tax imposed on a newly constructed energy-efficient building under this Section.

  (e)   Application.

    (1)   An application by the owner of a newly constructed energy-efficient building for a tax credit must be in the form prescribed by the Director and must include:

      (A)   a certification from the Department of Permitting Services within the past year indicating the percentage performance above current Building Code requirements at time of application demonstrated by the newly constructed energy-efficient building for the New Building Energy Reduction Tax Credit; and

      (B)   if the New Building Sustainability Tax Credit is sought after receiving the New Building Energy Reduction Tax Credit, verified documentation by the newly constructed energy-efficient building demonstrating qualification for the New Building Sustainability Tax Credit within two years after obtaining a use and occupancy permit.

    (2)   A building owner that has received either a New Building Energy Reduction Tax Credit or a New Building Sustainability Tax Credit may not reapply for either credit for the same newly constructed building in any later tax year.

  (f)   New Building Energy Reduction Tax Credit.

    (1)   A newly constructed energy-efficient building may receive a New Building Energy Reduction Tax Credit for achieving energy use reductions as outlined in this subsection and, if that credit is granted, may receive an additional New Building Sustainability Tax Credit as described in subsection (g).

    (2)   To be eligible for the New Building Energy Reduction Tax Credit, a newly constructed energy-efficient building owned by the applicant must achieve a minimum 10 percent increase in energy performance above the current applicable building code requirements at time of application using an energy modeling software approved by the Department of Permitting Services.

    (3)   For the New Building Energy Reduction Tax Credit, the percentage of the annual County property tax credit awarded for 4 years is calculated by rounding a newly constructed energy-efficient building’s performance above building code requirements to the nearest whole number and multiplying it by the multiplier below:

      (A)   if the building’s performance above Code is between 10 and 20 percent, multiply the building performance percentage figure by 0.5;

      (B)   if the building’s performance above Code is between 21 and 30 percent, multiply the building performance percentage figure by 1.0;

      (C)   if the building’s performance above Code is between 31 and 40 percent, multiply the building performance percentage figure by 1.5; or

      (D)   if the building’s performance above Code is above 40 percent, multiply the building performance percentage figure by 2.0.

  (g)   New Building Sustainability Tax Credit.  The owner of a newly constructed energy-efficient building seeking the New Building Sustainability Tax Credit must apply for that tax credit after receiving the New Building Energy Reduction Tax Credit.

    (1)   The amount of the New Building Sustainability Tax Credit must be equal to:

      (A)   25% of the property tax owed on the building for 4 years if the building achieves the most recent version available of LEED Gold, NGBS Gold, PHIUS+/PassiveHouse, BREEAM-NC Excellent or an equivalent standard;

      (B)   75% of the property tax owed on the building for 4 years if the building achieves the most recent version available of LBC Petal Certification, LEED Platinum, NGBS Emerald, BREEAM-NC Outstanding or an equivalent standard; or

      (C)   75% of the property tax owed on the building for 5 years if the building achieves the most recent version available of Living Building Certification.

    (2)   To be approved for the New Building Sustainability Tax Credit, an energy-efficient building must first be approved for the New Building Energy Reduction Tax Credit.

  (h)   Expanded credit for buildings in Equity Emphasis Areas.

    (1)   The owner of a newly constructed energy-efficient building located within an Equity Emphasis Area at the time of application may qualify for an expanded credit under this subsection.

    (2)   The owner must apply for a credit under this subsection simultaneously with an application for the New Building Energy Reduction Tax Credit.

    (3)   The amount of the tax credit under this subsection must be added to the New Building Energy Reduction Tax Credit for each year that the New Building Energy Reduction Tax Credit is granted.

    (4)   The amount of the tax credit under this subsection must be equal to 10% of the annual property tax owed on the building.

  (i)   Total Maximum Credit.  The maximum credit under this Section that an energy-efficient building may be granted in any fiscal year must not exceed 100% of the building’s annual property tax liability.

  (j)   Credit Review.

    (1)   By October 1 of each year, the Director must prepare a report on the status of the New Building Energy Reduction Tax Credit and the New Building Sustainability Tax Credit.

    (2)   Every 3 years, the County Executive must submit a report to the Council reviewing the effectiveness of the New Building Energy Reduction Tax Credit and the New Building Sustainability Tax Credit and making recommendations on any credit alterations.

  (k)   Regulations.  The County Executive may issue regulations under method (2) to administer the New Building Energy Reduction Tax Credit and the New Building Sustainability Tax Credit.

**Sec. 52-104. Property tax credit — renewable energy.**

  (a)   Definitions.  In this Section, the following words have the meanings indicated:

    Director means the Director of the Department of Finance or the Director’s designee.

    Eligible cost means the cost of buying or installing a solar or geothermal energy device or energy conservation device, including any part, component, or accessory necessary to operate the device, that is installed within 12 months before a property owner submits an application to the Department of Finance under subsection (f).

    Energy conservation device means a device that:

    (1)   reduces the demands for conventional fuels or efficiency of these fuels, including:

      (A)   caulking and weatherstripping doors and windows;

      (B)   furnace efficiency modifications, including:

        (i)   replacing a burner, furnace, heat pump, or boiler if the replacement substantially increases the energy efficiency of the heating system;

        (ii)   a device to modify flue openings that increases the energy efficiency of the heating system; and

        (iii)   any electrical or mechanical furnace ignition system which replaces a standing gas pilot light;

      (C)   a programmable thermostat;

      (D)   ceiling, attic, wall, or floor insulation;

      (E)   water heater insulation;

      (F)   storm windows or doors, multiglazed windows or doors, and heat- absorbed or heat-reflective glazed window or door materials;

      (G)   any device which controls demand of appliances and aids load management; and

      (H)   any other conservation device, renewable energy technology, and specific home improvement that the Director finds necessary to assure that energy conservation measures are effective; and

    (2)   meets safety and performance standards set by a nationally recognized testing laboratory for that kind of device.

    Energy conservation device does not include a standard household appliance, such as a washing machine or clothes dryer.

    Geothermal energy device means a device that:

    (1)   uses geothermal energy to heat or cool a structure, to provide hot water for use in the structure, or to generate electricity to be used in the structure; and

    (2)   meets safety and performance standards set by a nationally recognized testing laboratory for that kind of device.

    Solar energy device means a device that:

    (1)   uses solar energy to heat or cool a structure, to provide hot water for use in the structure, or to generate electricity to be used in the structure; and

    (2)   meets safety and performance standards set by a nationally recognized testing laboratory for that kind of device.

    Tax-Property Article means the Tax-Property Article of the Maryland Code.

  (b)   Credit.  As authorized by § 9-203 of the Tax-Property Article, an individual who owns and occupies a single-family home that uses a solar or geothermal energy device or an energy conservation device may receive a credit against the County property tax.  An individual must only receive a credit for a device that the individual owns.

  (c)   Amount of Credit.

    (1)   The credit allowed under this Section for a geothermal or solar energy device is the lower of:

      (A)   50% of the eligible costs; or

      (B)   $5,000 for a heating or cooling system, $1,500 for a hot water supply system, or $5,000 for a device that generates electricity.

    (2)   In any fiscal year, a person must not receive a credit for more than 1 geothermal or solar energy device per property.

    (3)   In any fiscal year, the credit allowed under this Section for eligible costs for all energy conservation devices must not exceed $250 per property.

  (d)   Annual aggregate limit.

    (1)   Unless a larger amount is approved in the annual operating budget or a Council resolution, during any fiscal year, the total credits granted under this Section must not exceed:

      (A)   $400,000 for solar and geothermal energy devices; and

      (B)   $100,000 for energy conservation devices.

    (2)   Credits must be granted in the order in which the Department of Finance receives complete applications under subsection (f).

    (3)   A complete application that, if granted, would cause the limit set in paragraph (1) of this subsection to be exceeded, must be granted in the next fiscal year or years based on the order in which the Department of Finance received the application.

  (e)   Carry Over.

    (1)   The amount of credit in any tax year must not exceed the amount of the County property tax imposed on the property in that tax year.

    (2)   Any amount of credit not taken in the tax year in which an application is approved may be carried over for an additional two years.

    (3)   When a credit is carried over under this subsection, the full amount of the credit must be counted towards the annual aggregate limit established in subsection (d) in the year in which an application is approved.

  (f)   Application.

    (1)   A property owner must submit an application to the Director on or before the date that the Director sets.

    (2)   An application must:

      (A)   be on the form that the Director requires;

      (B)   demonstrate that the taxpayer is entitled to the credit; and

      (C)   include a certification from the Department of Permitting Services, indicating that the device for which the credit is sought:

        (i)   is a solar or geothermal energy device; and

        (ii)   has been properly installed.

    (3)   The Department of Permitting Services must accept a certification by another government agency, including a municipality, that the device has been properly installed.

  (g)   Applicability.  The credit authorized by this Section applies to any tax year beginning after June 30, 2008.  However, the Director must not grant a credit for a solar or geothermal energy device for any application received after November 8, 2011, unless an individual:

    (1)   enters into a contract for eligible costs on or before November 8, 2011; and

    (2)   applies for the credit on or before November 8, 2012.

**Sec. 52-105. Property tax credit — publicly sponsored business incubator.**

  (a)   In this section “business incubator” has the meaning in the State law which authorizes this property tax credit.

  (b)   The Director of Finance must allow a tax credit, as authorized by State law, to a taxpayer against all County property tax and special area tax imposed on property that is used as a business incubator if the State, the County, or an agency or instrumentality of the State or County:

    (1)   owns, controls, or leases the space that is used as a business incubator; or

    (2)   provides at least 50% of the total funding received by the business incubator from all sources, not including rents received from incubator tenant firms.

  (c)   The Department of Finance must administer this credit.

  (d)   The taxpayer must apply annually for the tax credit by the first day of March before the tax year when the tax credit would be allowed.  An application must be filed on forms that the Department prescribes.  The applicant must submit any supporting document, information, or certification required by the Department.

  (e)   Any taxpayer aggrieved by a decision of the Director to deny a credit under this Section may appeal that decision to the Maryland Tax Court.  Each appeal must be filed within 30 days after the taxpayer receives written notice of the decision from the Director.

  (f)   The County Executive may adopt regulations under method (2) to administer this Section.

  (g)   The County Executive must report annually to the County Council on the use of this tax credit.

  (h)

    (1)   A person must not knowingly file a false or fraudulent application to obtain a tax credit under this Section.  A violation of this subsection is a class A violation.

    (2)   In addition to the penalties provided under paragraph (1), a person who violates this subsection must pay the County any taxes, together with interest and penalties, offset by the credit, any other penalty due, and the County’s fees and costs in any action to enforce this subsection.

**Sec. 52-106. Property tax credit — accessibility features.**

  (a)   Definitions.  In this Section, the following terms have the meaning indicated.

    Department means the Department of Permitting Services.

    Director means the Director of the Department or the Director’s designee.

    Eligible costs means costs that are:

    (1)   incurred within 12 months before the property owner submits an application to the Department for the credit;

    (2)   for a feature authorized under this Section, including reasonable costs to install the feature;

    (3)   paid by the applicant and not, or will not be, reimbursed by any entity; and

    (4)   in excess of $500.

    Feature means a permanent modification to a residence that results in:

    (1)   a no-step front door entrance with a threshold that does not exceed ½ inch in depth with tapered advance and return surfaces or, if a no-step front entrance is not feasible, a no-step entrance to another part of the residence that provides access to the main living space of the residence;

    (2)   an installed ramp creating a no-step entrance;

    (3)   an interior doorway that provides a 32-inch wide or wider clearing opening;

    (4)   an exterior doorway that provides a 32-inch wide or wider clear opening, but only if accompanied by exterior lighting that is either controlled from inside the residence, automatically controlled, or continuously on;

    (5)   walls around a toilet, tub, or shower reinforced to allow for the proper installation of grab bars with grab bars installed in accordance with the Americans with Disabilities Act Standards for Accessible Design;

    (6)   maneuvering space of at least 30 inches by 48 inches in a bathroom or kitchen so that a person using a mobility aid may enter the room, open and close the door, and operate each fixture or appliance;

    (7)   an exterior or interior elevator or lift or stair glide unit;

    (8)   an accessibility-enhanced bathroom, including a walk-in or roll-in shower or tub; or

    (9)   an alarm, appliance, and control structurally integrated into the unit designed to assist an individual with a sensory disability.

  (b)   Credit established.  In accordance with Section 9-250 of the Tax-Property Article of the Maryland Code, the owner of real property may receive a property tax credit against the County property tax for a feature that is installed on an existing residence that is the owner’s principal residence when the feature is installed.

  (c)   Credits.

    (1)   The tax credit allowed under this Section is the lesser of:

      (A)   50% of the eligible costs; or

      (B)   $2,500 less any subsidy received from a governmental, quasi-governmental, or non-profit entity for the feature.

    (2)   Any credit that is received which exceeds the annual tax liability of the property may be carried over to the next tax year.

    (3)   The credit runs with the property upon the transfer of title, and the balance of any credit must be applied to the tax bill of the subsequent owner of the property.

  (d)   Annual Limit on Amount of Credits Granted.

    (1)   During any fiscal year, the total of all tax credits granted under this Section must not exceed $100,000.

    (2)   Credits must be granted in the order in which the Department certifies the amount of the credit under subsection (e)(3).

    (3)   A certification of a credit that would cause the limit in subsection (d)(1) to be exceeded must be granted in the next tax year or years, subject to subsections (c) and (d)(1).

  (e)   Application for the Credit.

    (1)   To receive the credit, a property owner must submit an application to the Department:

      (A)   in the format the Department requires;

      (B)   that includes a copy of the building permit to install the feature;

      (C)   that includes any document that the Department requires; and

      (D)   on or before the date the Department sets.

    (2)   The Department must only accept one application for a credit under this Section for each property during a single tax year.

    (3)   The Department must certify to the Department of Finance that the property is eligible for the credit and the amount of the credit.

    (4)   A property owner may submit an application on or after March 1, 2014 for a credit.

  (f)   Administration.

    (1)   The County Executive may adopt regulations under Method (2) to administer this Section.

    (2)   The Department must submit a written report to the Council by October 1 of each year for the preceding fiscal year.  The report must include the following:

      (A)   number of applicants;

      (B)   number of applications approved;

      (C)   modification made by the applicant;

      (D)   other sources from which the applicant received funds or applied for assistance for the modification;

      (E)   efforts to advertise the credit; and

      (F)   any program recommendations.

  (g)   Publicity.  The Department must publicize the credit in a way designed to inform those most likely to benefit from the credit.

  (h)   Effective Date.  The credit authorized by this Section applies to tax years beginning on or after July 1, 2014.

**Sec. 52-107. Property tax credit — level I and level II accessibility standards.**

  (a)   Definitions.  In this Section, the following terms have the meaning indicated:

    Department means the Department of Permitting Services.

    Director means the Director of the Department or the Director’s designee.

    Eligible costs means costs that are:

    (1)   incurred within 12 months before the property owner submits an application to the Department for the credit;

    (2)   for an accessibility feature authorized under this Section, including reasonable costs to install the feature;

    (3)   paid by the applicant and not, or will not be, reimbursed by any entity; and

    (4)   in excess of $500.

    Accessibility Feature means a permanent addition to a single family residence that is a requirement under a Level I or Level II Accessibility Standard.

    Level I Accessibility Standard means a permanent addition to a single family residence that include at least one no-step entrance located at any entry door to the house that is connected to an accessible route to a place to visit on the entry level, a usable powder room or bathroom, and a 32-inch nominal clear width interior door as further defined and described in Executive Regulations adopted under Method 2.

    Level II Accessibility Standard means permanent additions to a single family residence that provide all of the Level I Accessibility Standards plus an accessible circulation path that connects the accessible entrance to an accessible kitchen, a full bath, and at least one accessible bedroom, as further defined and described in Executive Regulations adopted under Method 2.

    Single family residence means an attached or detached single family home.

  (b)   Credit established.  As authorized by Section 9-250 of the Tax-Property Article of the Maryland Code, the owner of a single family residence located in Montgomery County may receive a property tax credit against the County real property tax for the cost of features that achieve Level I or Level II Accessibility Standards.

  (c)   Amount of Credit.  The tax credit permitted by this Section must be as follows:

    (1)   For features meeting Level I Accessibility Standards, certified costs of up to $3,000 less any credit received against the Development Impact Tax for School Improvements under Section 52-58 for those features and less any funds or assistance received for the accessibility feature.

    (2)   For features meeting Level II Accessibility Standards, certified costs of up to $10,000 less any credit received against the Development Impact Tax for School Improvements under Section 52-58 for those features and less any funds or assistance received for the accessibility feature.

    (3)   The maximum amount of credit that may be applied in any one tax year is $2,000.

    (4)   The amount of credit that may be applied in any one tax year must not exceed the amount of County property tax imposed on the property in that year.

    (5)   Any credit that is granted that exceeds the limit set in subsection (c)(3) or exceeds the annual tax liability of the property may be carried over to the next tax year, subject to subsection (c)(3), until the entire amount of the credit is applied.

    (6)   The credit runs with the property upon transfer of title and the balance of any credit must be applied to the tax bill of the subsequent owner of the property.

  (d)   Annual Limit on Amount of Credits Granted.

    (1)   During any tax year, the total of all tax credits granted under this Section must not exceed $500,000.

    (2)   Credits must be granted in the order in which the Department certifies the amount of the credit under subsection (e)(3).

    (3)   A certification of a credit that would cause the limit in subsection (d)(1) to be exceeded must be granted in the next tax year or years subject to subsections (c)(3) and (d)(1).

  (e)   Application for the Credit.

    (1)   To receive the credit, a property owner must submit an application to the Department:

      (A)   in the format the Department requires;

      (B)   that includes a copy of the building permit to install the feature;

      (C)   that includes any document that the Department requires; and

      (D)   on or before the date set in the regulations.

    (2)   The Department must only accept one application for a credit under this Section for each property during a single tax year.

    (3)   The Department must certify to the Department of Finance that the property is eligible for the credit and the amount of the credit.

    (4)   A property owner may apply for a credit on or after March 1, 2014.

  (f)   Administration.

    (1)   The County Executive may adopt regulations under Method (2) to administer this Section.

    (2)   The Department must submit a written report to the Council by October 1 of each year for the preceding tax year.  The report must include the following:

      (A)   number of applicants;

      (B)   number of applications approved;

      (C)   modification made by the applicant; and

      (D)   efforts to promote the credit.

  (g)   Publicity.  The Department must publicize the credit in a way designed to inform those most likely to benefit from the credit.

  (h)   Effective Date.  The credit authorized by this Section applies to tax years beginning on or after July 1, 2014.

**Sec. 52-108. Burtonsville Enterprise Zone Property.**

  (a)   Definitions.  In this Section, the following words have the meanings indicated:

    Base year means the taxable year immediately before the taxable year in which a credit under this Section is to be granted.

    Base year value means the value of the property used to determine the assessment on which the property tax on real property was imposed for the base year. Base year value does not include any new real property that was first assessed in the base year.

    Eligible assessment means the difference between the base year value and the actual value as determined by the Department for the applicable taxable year in which the tax credit under this Section is to be granted.

    Eligible business entity means a person who operates or conducts a trade or business on qualified enterprise zone property but does not own the qualified enterprise zone property.

    Qualified property means real property that:

    (1)   is located within the area encompassed by the Burtonsville Crossroads neighborhood Plan developed by the Montgomery County Planning Department;

    (2)   is zoned for commercial or commercial/residential mixed use development and is used for a commercial purpose; and

    (3)   is improved after the effective date of this Bill and before January 1, 2020 or another date provided in Section 9-317 of the Tax-Property Article.

    Tax-Property Article means the Tax-Property Article of the Maryland Code.

  (b)   Credit.

    (1)   Credit authorized.  The Director of Finance must allow a credit, as authorized by State law, to a taxpayer against all County property tax and imposed on:

      (A)   improvements made by an eligible business entity to qualified property; and

      (B)   personal property owned by an eligible business entity located on qualified property.

    (2)   Duration of credit.  A credit under this Section is available to a qualified property for no more than 5 consecutive years beginning with the taxable year following the calendar year in which the real property initially becomes a qualified property.

    (3)   Amount of credit.  The amount of the credit is equal to 80% of the amount of property tax imposed on the eligible assessment of the qualified property in each of the first 5 taxable years following the calendar year in which the property initially becomes a qualified property.

    (4)   Nonresidential portions of qualified property.  The Department must allocate the eligible assessment to the nonresidential part of the qualified property at the same percentage as the square footages of the nonresidential part is to the total square footage of the building.

    (5)   For purposes of calculating the amount of the credit allowed under this Section, the amount of property tax imposed on the eligible assessment must be calculated without reduction for any credits allowed under the Tax-Property Article.

  (c)   Regulations.  The County Executive may adopt regulations under Method (2) to administer this Section.

  (d)   False or fraudulent applications.

    (1)   A person must not knowingly file a false or fraudulent application to obtain a tax credit under this Section. A violation of this subsection is a Class A violation.

    (2)   In addition to the penalties provided under paragraph (1), a person who violates this subsection must pay the County any taxes, together with interest and penalties, offset by the credit, any other penalty due, and the County’s fees and costs in any action to enforce this subsection.

**Sec. 52-109. Property tax credit — reduced rent for elderly or disabled tenants.**

  (a)   Definitions.  In this Section:

    Director means the Director of Finance or the Director’s designee.

    Elderly or disabled tenant means a tenant who meets the income- and asset-based eligibility requirements established by regulation under subsection (f) and:

    (1)   is at least 65 years old;

    (2)   has been found permanently and totally disabled and has qualified for benefits under:

      (A)   the Social Security Act;

      (B)   the Railroad Retirement Act;

      (C)   any federal act for members of the United States armed forces; or

      (D)   any federal retirement system; or

    (3)   has been found permanently and totally disabled by the County health officer.

    Market rent means an amount, determined by the Department of Housing and Community Affairs, equal to:

    (1)   the rent charged to other tenants for comparable units in the same property; or

    (2)   if there are no other comparable units in the same property, the rent charged for comparable units in the same market area.

    Reduced rent means rent charged to an elderly or disabled tenant that is at least 15% less than market rent.

    Rent reduction means the difference between the market rent and reduced rent for the dwelling.

    Tax-Property Article means the Tax-Property Article of the Maryland Code.

  (b)   Credit.  As authorized by §9-219 of the Tax-Property Article, the owner of a rental dwelling who provides reduced rent to an elderly or disabled tenant may receive a credit against the County property tax.

  (c)   Amount of Credit.

    (1)   The credit allowed under this Section is 50% of the total rent reductions provided by the owner to elderly or disabled tenants during the tax year.

    (2)   A credit granted to a person under this Section must not exceed the amount of County property tax paid by the person in the tax year in which the credit is granted.

  (d)   Annual aggregate limit.

    (1)   Unless a larger amount is approved in the annual operating budget or a Council resolution, during any fiscal year, the total credits granted under this Section must not exceed $250,000.

    (2)   Credits must be granted in the order in which the Department of Finance receives complete applications under subsection (e).

    (3)   A complete application that, if granted, would cause the limit set in paragraph (1) of this subsection to be exceeded, must be granted in the next fiscal year or years based on the order in which the Department of Finance received the application.

  (e)   Application.

    (1)   A property owner must submit an application to the Director on or before the date that the Director sets.

    (2)   An application must:

      (A)   be on the form that the Director requires; and

      (B)   demonstrate that the taxpayer is entitled to the credit.

  (f)   Regulations.  The County Executive must adopt regulations under method (2) to administer this Section, including income- and asset-based tenant eligibility requirements.

**Sec. 52-110. Property tax credit — individuals 65 and above and retired military services members.**

  (a)   Definitions. In this Section, the following words have the meanings indicated:

    Department means the Department of Finance.

    Director means the Director of the Department or the Director’s designee.

    Dwelling has the same meaning as in § 9-105 of the Tax-Property Article of the Maryland Code.

  (b)   Credit. As authorized by § 9-258 of the Tax-Property Article of the Maryland Code, an eligible individual may receive a credit against the County property tax imposed on the dwelling of an eligible individual.

  (c)   Eligibility. An individual is eligible to receive a property tax credit if:

    (1)

      (A)   the individual is at least 65 years old;

      (B)   the individual has lived in the same dwelling for at least the preceding 40 years; and

      (C)   the dwelling for which a property tax credit is sought has a maximum assessed value of $700,000 at the time the individual first applied for the credit;

    (2)

      (A)   the individual is at least 65 years old;

      (B)   the individual is a retired member of the uniformed services of the United States as defined in 10 U.S.C. §101, the military reserves, or the national guard; and

      (C)   the dwelling for which a property tax credit is sought has a maximum assessed value of $550,000 at the time the individual first applied for the credit; or

    (3)

      (A)   the individual is a surviving spouse of a retired member of the uniformed services of the United States as defined in 10 U.S.C. §101, the military reserves, or the national guard;

      (B)   the surviving spouse is at least 65 years old; and

      (C)   the surviving spouse has not remarried.

  (d)   Amount and duration of credit.

    (1)   The credit allowed under this Section is 20% of the County property tax imposed on the dwelling.

    (2)   The credit must be granted each year for 7 years if the individual remains eligible for the credit.

  (e)   Application.

    (1)   A property owner must submit an application to the Director on or before April 1 before the tax year that the individual first seeks to receive the credit. An annual application is not required for an individual to receive the credit.

    (2)   An application must:

      (A)   be on the form that the Director requires; and

      (B)   demonstrate that the taxpayer is entitled to the credit.

  (f)   Regulations. The County Executive may issue regulations under Method 2 to administer this tax credit.

  (a)  The Council declares that this legislation is necessary for the immediate protection of the public interest.  Section 52-110, as amended by Section 1 of this Act, takes effect on July 1, 2019.

  (b)  Notwithstanding Section 52-110(e), an individual that meets the eligibility criteria of Section 52-110(c)(3) must submit an application to the Director on or before October 1, 2019 if the individual seeks to receive the tax credit for Fiscal Year 2020.

  (a)  Section 1 of this Act takes effect on the date on which it becomes law and applies retroactively to March 31, 2018.

  (b)  Section 2 of this Act takes effect on July 1, 2018.  Notwithstanding Section 52-110(e), an individual that meets the eligibility criteria of Section 52-110(c)(3) must submit an application to the Director on or before September 1, 2018 if the individual seeks to receive the tax credit for Fiscal Year 2019.

**Sec. 52-111. Urban Agricultural Tax Credit.**

  (a)   Definitions. In this Section:

    Gross income means the revenue received from the sale of products grown or raised on the property, including the fair market value of food products grown or raised on the property donated to an organization registered as a charitable organization with the Maryland Secretary of State.

    Urban agricultural property means real property in a residential zone that is:

      (1)   at least one-half of an acre and not more than 3 acres;

      (2)   located within 1000 feet of or in a Metro Station Policy Area, as defined in the most recent Growth and Infrastructure Policy adopted under Section 33A-15, including the:

        (A)   Bethesda Central Business District;

        (B)   Friendship Heights;

        (C)   Glenmont;

        (D)   Grosvenor;

        (E)   Rockville Town Center;

        (F)   Shady Grove;

        (G)   Silver Spring Central Business District;

        (H)   Twinbrook;

        (I)   Wheaton Central Business District; and

        (J)   White Flint; and

      (3)   used for urban agricultural purposes.

    Urban agricultural purposes means

      (1)   the cultivation of fruits, vegetables, flowers, and ornamental plants;

      (2)   the limited keeping and raising of fowl or bees; or

      (3)   the practice of aquaculture.

  (b)   Credit required. The Director of Finance must allow each eligible taxpayer a credit against County real property taxes due in each tax year in which the taxpayer is eligible for the credit.

  (c)   Eligibility. A property owner is eligible for the tax credit each year:

    (1)   the urban agricultural property is used solely for urban agricultural purposes, except an individual may also reside on the property;

    (2)   the property owner has more than $5000 in gross income from the sale of products grown or raised on the urban agricultural property; and

    (3)   the property owner files a timely application for the credit with proof of eligibility.

  (d)   Amount of credit. The credit must equal 80% of the County property tax otherwise due on the property.

  (e)   Application. In order to receive the credit, a property owner must apply for the credit with the Office of Agriculture on or before April 1 of the tax year before the first tax year the tax credit is sought on a form containing the information required by the Office of Agriculture. A property owner must apply to continue the credit on or before April 1 of the tax year before each subsequent tax year. The Director of Finance must determine taxpayer eligibility for the credit based upon the recommendation from the Office of Agriculture.

  (f)   Term of credit.

    (1)   The term of the credit is 5 tax years, unless renewed.

    (2)   A taxpayer may apply to renew the credit no later than 90 days before the expiration of the credit for another 5 tax years.

  (g)   Continuous agricultural use required. If, at any time during the term of the credit or the renewal of the credit, the property is no longer used for agricultural purposes:

    (1)   the credit granted to the property must be terminated; and

    (2)   the owner of the property is liable for all property taxes that would have been due if the credit had not been granted for any year that the property was not used for agricultural purposes.

  (h)   Contiguous lots. A property owner may combine 2 or more contiguous subdivision lots under common ownership into one property to satisfy the minimum lot size for an urban agricultural property in subsection (a).

  (i)   Appeal. The Director must take all actions necessary to apply the credit to each eligible taxpayer who applies for the credit and is certified as eligible by the Office of Agriculture. A taxpayer may appeal a final decision by the Director denying or terminating the credit to the Maryland Tax Court within 30 days after receiving a notice of denial or termination from the Director.

**Sec. 52-112. Police Officer Property Tax Credit.**

  (a)   Definitions. In this Section:

    Active volunteer means a local fire and rescue department volunteer who was eligible for a nominal fee for active service for the preceding tax year.

    Correctional officer means a Correctional Officer I, Correctional Officer II, Correctional Officer III, Correctional Dietary Officer I, Correctional Dietary Officer II, Resident Supervisor I, Resident Supervisor II, Resident Supervisor III, Correctional Supervisor-Sergeant, Correctional Dietary Supervisor, Correctional Shift Commander-Lieutenant, Correctional Unit Commander- Captain, Deputy Warden, or Warden employed by the County.

    Deputy sheriff means a deputy sheriff of the Office of the Sheriff for Montgomery County.

    Director means the Director of the Department of Finance or the Director’s designee.

    Dwelling means as defined in Md. Tax-Property Code Ann. § 9-105.

    Public safety emergency communication specialist means a full-time County employee responsible for providing mission critical services between the general public in crisis and law enforcement, fire, emergency medical, and animal control providers in the 9-1-1 emergency communications center.

    Public safety officer means a full-time sworn police officer, firefighter, emergency medical technician or correctional officer employed by the County, the Maryland-National Capital Park and Planning Commission (M-NCPPC), the Washington Suburban Sanitary Commission (WSSC), the Washington Suburban Transit Commission (WSTC), or by a County municipality. Public safety officer also includes a full-time County employee assigned to the Department of Health and Human Services Crisis Center and responsible for providing emergency response services as certified annually by the Chief of Behavioral Health and Crisis Services within the Department of Health and Human Services.

  (b)   Credit required. The Director must allow each eligible taxpayer a credit against County real property taxes due in each tax year in which the taxpayer is eligible for the credit.

  (c)   Eligibility. A taxpayer is eligible for the tax credit each year for residential property located in the County if the taxpayer:

    (1)   is a public safety officer, a public safety emergency communication specialist, a deputy sheriff, or an active volunteer;

    (2)   is using the property as the employee’s principal residence;

    (3)   occupies or is expected to occupy the property for more than 6 months of a 12-month period beginning with the date of finality for the taxable year for which the property tax credit under this section is sought; and

    (4)   is a legal owner of the property.

  (d)   Amount of credit. The credit must equal the lesser of $2,500 or the amount of the County property tax otherwise due on the property.

  (e)   Application. In order to receive the credit, a public safety officer or a public safety emergency communications specialist must apply for the credit with the Director on or before April 1 of the tax year before the first tax year the tax credit is sought on a form containing the information required by the Director. An employee must apply to continue the credit on or before April 1 of the tax year before each subsequent tax year. The Chief of Behavioral Health and Crisis Services within the Department of Health and Human Services must provide the annual certification required under Section 52-112(a) by April 1. The Director must determine taxpayer eligibility for the credit.

  (f)   Continuous eligibility required. If, at any time during the term of the credit or the renewal of the credit, the property is no longer eligible for the credit:

    (1)   the credit granted to the property must be terminated; and

    (2)   the owner of the property is liable for all property taxes that would have been due if the credit had not been granted for any year that the property was not eligible for the credit.

  (g)   Appeal. The Director must take all actions necessary to apply the credit to each eligible taxpayer who applies for the credit and is certified as eligible by the Director. A taxpayer may appeal a final decision by the Director denying or terminating the credit to the Maryland Tax Court within 30 days after receiving a notice of denial or termination from the Director.

**Sec. 52-113. Property tax credit — disabled veterans.**

  (a)   Definitions. In this Section, the following words have the meanings indicated:

    Annual income means the federal adjusted gross income of a tax filer for the immediately preceding taxable year.

    Department means the Department of Finance.

    Director means the Director of the Department or the Director’s designee.

    Disabled veteran means an individual who:

    (1)   is honorably discharged or released under honorable circumstances from active military, naval, or air service as defined in 38 U.S.C. Section 101, as amended; and

    (2)   either:

      (A)   has been declared by the U.S. Department of Veterans Affairs, or its successor, to have a permanent service-connected disability of at least 50 percent that results from blindness or any other disabling cause that:

        (i)   is reasonably certain to continue for the life of the veteran; and

        (ii)   was not caused or incurred by misconduct of the veteran; or

      (B)   has been declared by the U.S. Department of Veterans Affairs to have a nonpermanent service-connected disability of 100 percent that results from blindness or any other disabling cause that was not caused or incurred by misconduct of the veteran.

    Dwelling house means real property that is:

    (1)   the legal residence of a disabled veteran; and

    (2)   occupied by not more than two families.

    Dwelling house includes the lot or curtilage and structures necessary to use the real property as a residence.

    Surviving spouse means an individual who:

    (1)   was married to an eligible disabled veteran at the time of the disabled veteran’s death;

    (2)   has not remarried; and

    (3)   has a legal interest in the dwelling house.

  If the disabled veteran was unmarried at the time of death, or if the individual married to the veteran died simultaneously with or predeceased the veteran, then surviving spouse includes a person with a legal interest in the dwelling house who is:

    (1)   a minor child of the veteran, a trust for the benefit of the minor child, or a legal guardian of the minor child; or

    (2)   if the veteran does not have a minor child, any other legal dependent of the veteran.

  (b)   Credit. As authorized by Section 9-265 of the Tax-Property Article of the Maryland Code, as amended, a disabled veteran, or surviving spouse of the disabled veteran, may receive under this Section a credit against the County property tax imposed on a dwelling house.

  (c)   Eligibility. A disabled veteran is eligible to receive a property tax credit under this Section if:

    (1)   the dwelling house is owned by the disabled veteran;

    (2)   the federal adjusted gross income of the disabled veteran for the immediately preceding taxable year does not exceed $100,000; and

    (3)   the application requirements of subsection (d) are met.

  (d)   Application.

    (1)   A property owner must submit an application to the Director on or before April 1 before the tax year that the individual seeks to receive the credit.

    (2)   An application must:

      (A)   be on the form that the Director requires;

      (B)   include a copy of the disabled veteran’s discharge certificate from active military, naval, or air service; and

      (C)   on the form provided by the Director, include a certification of the disabled veteran’s disability from the U.S. Department of Veterans Affairs or its successor.

    (3)   The disabled veteran’s certificate of disability must not be inspected by individuals other than:

      (A)   the disabled veteran; and

      (B)   appropriate employees of the County as needed to process the application.

    (4)   If a person requests to inspect the veteran’s certificate of disability, or any other information related to the eligibility of a disabled veteran or a surviving spouse, the County immediately must notify the disabled veteran or the surviving spouse of the request.

  (e)   Amount and duration of credit.

    (1)   The property tax credit granted under this section must equal:

      (A)   50 percent of the County property tax imposed on the dwelling house if the disabled veteran’s service-connected disability rating is at least 75 percent and the disabled veteran does not qualify for a property tax exemption under Section 7-208 of the Tax-Property Article of the Maryland Code, as amended; or

      (B)   25 percent of the County property tax imposed on the dwelling house if the disabled veteran’s service-connected disability rating is at least 50 percent but not more than 74 percent.

    (2)   The credit must be granted each year the individual remains eligible for the credit.

    (3)   If a disabled veteran to whom the County granted the credit dies, the County must grant the same credit amount to the surviving spouse of the veteran.

  (f)   Regulations. The County Executive may issue regulations under Method (2) to administer this tax credit.