Maryland residents and commercial properties can now claim energy storage systems against their state income taxes.
The state officially launched the pilot years of the Energy Storage Tax Credit Program on Jan. 1. A pool of $750,000 has been set aside for residential and commercial properties to claim for energy storage systems installed between Jan. 1 and Dec. 31 of this year.
Maryland is the first state in the country to offer this tax credit, which was approved by Gov. Larry Hogan (R) on May 4.
"Maryland is making our mark in the energy sector with this first in the nation, energy storage tax credit. This tax credit empowers Marylanders to support grid resiliency and serve as a model for all other 49 states," said Mary Beth Tung, Maryland Energy Administration director, in a news alert on Tuesday.
Systems can store energy as electrical, mechanical, chemical or thermal energy that is used as electrical energy at a later date or to offset electrical use during peak times.
The tax credit will reimburse residential customers 30 percent or up to $5,000 of the cost of installing the storage system. A total of $225,000 has been reserved for residential properties.
Commercial properties — for which $525,000 has been set aside — can also recover 30 percent or up to $75,000 of the cost of installing the system.
The tax credits will be awarded on a first-come, first-served basis. More information and eligibility criteria can be found on the Maryland Energy Administration's website.