Sales and Use Tax Exemption for Residential Solar and Wind Electricity Sales

Last updated: August 28, 2018

Program Overview

Implementing Sector:State
Category:Financial Incentive
State:Maryland
Incentive Type:Sales Tax Incentive
Administrator:Comptroller of Maryland
Eligible Renewable/Other Technologies:Solar Photovoltaics, Wind (Small)

Authorities

Name:Md Code: General Tax §11-207(a)(5)
Date Enacted:05/19/2011
Effective Date:07/01/2011

Summary

In May 2011 Maryland enacted legislation providing a sales and use tax exemption for sales of electricity from qualifying solar energy and residential wind energy equipment to residential customers. In order to qualify for the exemption, the sale of electricity must be for residential use on a property owned by a net metering eligible customer-generator. Maryland already exempted energy sales under residential or domestic rate schedules on file with the Maryland Public Service Commission (PSC) from the sales and use tax. The law therefore places sales/purchases of electricity under residential solar or wind retail power purchase agreements (PPAs) on a level playing field with customer purchases of electricity from the grid. The exemption took effect July 1, 2011.

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