Montgomery County Solar Energy Tax Incentives

Montgomery County offers property tax credits on residential, owner-occupied structures equipped with solar and other energy devices. Solar systems that heat or cool a structure; provide hot water for a structure; or generate electricity for on-site use in a structure are eligible for a tax credit. All systems must meet performance and safety standards set by a nationally recognized testing laboratory. The tax credit is effective for all property tax years beginning after June 30, 2008.  
 
The solar property tax credit is equal to 50% of the cost of the system, up to $5,000 for heating, cooling systems, and electricity generating systems and $1,500 for water heating systems. Residents may claim only one geothermal or solar energy tax credit per year. The tax credit for energy conservation devices is limited to the cost of the measure up to $250 per fiscal year. Eligible costs include parts, components and accessories necessary to operate the device as well as reasonable installation costs. Only costs incurred during the 12 months preceding a credit application are eligible for a tax credit.  
 
The amount of the tax credit may not exceed the taxes imposed on the property during a fiscal year. Excess credits accrued during a year may be carried forward for up to two additional years. The total value of credits granted by the county for all residents during a fiscal year may not exceed $250,000 for solar and geothermal devices. In the event that applications during a fiscal year exceed this limit, a credit may be granted the following year or years in the order applications are received.  
 
Persons wishing to claim the credit must first obtain a certification for their system from the Montgomery County Department of Permitting Services. Applications for the tax credit are handled by the Montgomery County Department of Finance.