Clean Energy Incentive Credit

Businesses that purchase and install solar water heating property and photovoltaic property or use waste materials to produce electricity (tax years 2001-2005) that is sold to an unrelated person may be entitled to an income tax credit.

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

The business must purchase and/or install photovoltaic property or solar water heating property during the taxable year. In addition, businesses can claim the credit if they primarily use waste products in the production of electricity during the taxable year using "Qualified Energy Resources"(see Internal Revenue Code 45).

The following waste products also qualify:

Forest-related resources (mill residues, pre-commercial thinnings, slash, or brush)
Waste pallets, crates, and dunnage, landscape or right-of-way trimmings, not including unsegregated municipal solid waste and post-consumer waste paper.
Organic materials in a landfill or wastewater treatment plant.

For more information, contact:

Revenue Administration Division Comptroller of Maryland (410)260-7980

Back