Subdivision 5E. Energy Conservation Real Property Tax Credit
Codified through Bill No. CB-018-2026, adopted May 12, 2026, effective July 24, 2026. Source: Municode, Supplement 2026 Update 2. Editorial notes and legislative history omitted.
Subdivision 5E. Energy Conservation Real Property Tax Credit
Prince George's County, Md., Code § 10-235.06 (2026)
Sec. 10-235.06. Energy Conservation Real Property Tax CreditLinkCopy Citation
(a)
In accordance with the provisions of Section 9-203 of the Tax-Property Article of the Annotated Code of Maryland, there is a tax credit against the property tax imposed on real property on a residential structure that utilizes a solar energy or geothermal energy device whether such device is owned by a homeowner, leased or financed through a Solar Power Purchase Agreement.
(b)
For the purposes of this section, the following terms have the meanings:
(1)
"Solar Energy Device" means an energy conservation device that:
(i)
uses solar energy to heat or cool a structure, to generate electricity to be used in the structure, or provide hot water for use in the structure; and
(ii)
meets national safety and performance standards set by a nationally recognized testing laboratory for that kind of device.
(2)
"Geothermal Energy Device" means an energy conserving device that:
(i)
uses geothermal energy to heat or cool a structure or to provide hot water for use in the structure; and
(ii)
meets national safety and performance standards set by a nationally recognized testing laboratory for that kind of device.
(3)
"Eligible Costs" means those that are incurred:
(i)
within the 12 months before the initial application for the credit; and
(ii)
for costs, including up front costs for the solar energy or geothermal energy device, including any parts, component, or accessory equipment necessary to operate the device, and reasonable costs associated with installing the device.
(4)
"Solar Power Purchase Agreement" means a financial arrangement in which a third-party developer owns, operates, and maintains the photovoltaic (PV) system, and a host customer agrees to site the system on its roof or elsewhere on its property and purchases the system's electric output from the solar services provider for a predetermined period. A taxpayer with a Solar Power Purchase Agreement or other type of leasing agreement is eligible for a tax credit under this section. An executed copy of the lease or power purchase agreement shall be provided to the Office of Finance as part of the energy conservation real property tax credit application.
(c)
The tax credit under this section for solar or geothermal system purchases is the lesser of
(1)
50% of eligible costs; or
(2)
$5,000 for a heating system or $1,500 for a hot water supply system.
(3)
During the fiscal year, tax credits granted under Subsection 10-235.06(c) shall not exceed $500,000.
(d)
The tax credit under this section for leases or solar power purchase agreements is the lesser of:
(1)
50% of eligible costs; or
(2)
$1,000, and shall not exceed the cost of the system.
(3)
During the fiscal year, tax credits granted under Subsection 10-235.06(c) for lease arrangements or solar power purchase agreements shall not exceed $100,000. The tax credit under Subsection 10-235.06(d) applies solely to solar energy devices installed after January 1, 2013.
(e)
No more than one tax credit under this Section shall be granted per residential household per tax year.
(f)
Tax credits shall be granted in the order in which the Office of Finance receives the complete application under subsection (h) of the section. If a complete application granted would cause the limit set in this subsection to be exceeded, the tax credit shall be granted in the next fiscal year or years and in the order received.
(g)
The amount of the tax credit applied in any tax year may not exceed the amount of the County property tax imposed on the property in that tax year. Any amount of the credit not taken in the tax year in which the application was granted may be carried over for an additional two years.
(h)
Application for the tax credit established herein shall be made under oath on an application provided by the Director of Finance. The application shall provide a legal description of the property, proof of a properly installed solar energy or geothermal energy device, and such other information or documentation as the Director may require to determine whether the applicant can qualify for the tax credit.
(i)
The Director of Finance shall determine the eligibility of the taxpayer for the tax credit and notify the State Department of Assessments and Taxation that a taxpayer has been approved for the property tax credit and the assessed value of the premises.
(j)
The Director of Finance shall provide an annual report to the County Council on the energy conservation real property tax credit on or before December 31st of each year for the previous fiscal year, which will show the location by Councilmanic District and include the following:
(1)
the number of applications received;
(2)
the number of applications denied;
(3)
the amount of tax credits approved; and
(4)
the amount of tax credits carried over.