Clean Energy Production Tax Credit
|Area of Interest||Renewable Energy|
The Clean Energy Incentive Tax Credit offers a state income tax credit for electricity generated by qualified resources of 0.85 cents per kilowatt-hour, and 0.50 cents per kilowatt-hour for electricity generated from co-firing a qualified resource with coal. These credits can be claimed over a period of five years and must be at least $5000 (cumulatively) to qualify. The maximum incentive a project can receive is $2.5 million in tax credits over a five-year period, and there is an annual maximum of $25 million in tax credits that can be claimed state-wide. If the credit in any taxable year exceeds a taxpayer's state income tax in that year, the taxpayer may claim a refund for the excess amount.
This credit is available to individuals and corporations that build and generate electricity from qualified resources operational on or after January 1, 2006, but before January 1, 2016. The electricity generated must be sold to an unrelated person during the taxable year.
|Eligible Organizations||Livestock Producer, Commercial/Industrial Business, Utility, Residential, Small Business|
|How to Apply||Businesses must apply for and receive an initial credit certificate from the Maryland Energy Administration before claiming the credit. Applications for credit certificates will be approved on a first-come, first-served basis. Certificates will not be issued after December 31, 2015. Once approved, businesses should complete Form 500CR and submit with their corporate income tax returns. If, over a three-year period, a taxpayer does not claim on average at least 10 percent of the maximum credit amount stated in the certificate, the Maryland Energy Administration may cancel part of the certificate.|
|For More Information||http://www.energy.state.md.us/Residential/cleanEnergyGrants.html|
|Primary Contact||Allison Buttel
Clean Energy Program Manager
Maryland Energy Administration
60 West Street
Annapolis, MD 21401