Green Buildings Tax Credit

Businesses that construct or rehabilitate a building that conforms to specific standards intended to save energy and to mitigate environmental impact may take a credit for a portion of the cost. The total amount of credits certified for all taxpayers each year (calendar years 2003 through 2011) is subject to certain limitations. Credits will be allowed for amounts spent on or after July 1, 2001.

The credit may be taken against corporate income tax or personal income tax.

Sole proprietorships, corporations and pass-through entities, such as partnerships, subchapter S corporations, limited liability companies and business trusts may claim the tax credit.

To Qualify For The Credit

A business must construct or rehabilitate a building located in Maryland with at least 20,000 square feet of interior space that is:

Used primarily for non-residential purposes;or
A residential, multi-family building with at least 12 dwelling units;or
Any combination of the above

The building must be located in a priority funding area or qualified "brownfields" site and not on wetlands.

If the building has been rehabilitated, but is not located in these areas, the business will still qualify for the credit if the increase in the building's square footage is 25 percent or less. You can find out if your building or site is located in a priority funding area online at http://www.msp.state.md.us/pfa_imf.htm or by calling Stephanie (Fleck) Martins at (410)767-4562 at the Department of Planning.

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