Tax Breaks in Maryland for Energy Star Appliances

If you live in Maryland, you might fund half of the cost of Energy Star appliances with rebates and tax breaks. However, most programs for Energy Star appliances have a limited amount of funds, so you must act quickly. In all likelihood, you will depend on rebates from a third party if you receive any incentive at all.

Warning

In 2009, the federal government appropriated funds to the states to fund programs that offered rebates for products that meet or exceed Energy Star requirements. As of June 2011, Maryland no longer has any funds under its energy-efficient appliances program. Congress possibly could appropriate funds in the future. However, some Energy Star products, such as biomass stoves and water heaters, still qualify for a federal tax credit.

Rebates

The Maryland Energy Administration (MEA) Home Performance Rebate program offers state-sponsored rebates for certain home appliances. The MEA rebates 35 percent of the cost of appliances and home improvements up to $1,500, and $100 for a home energy audit. The administration teams with utility companies, who offer an additional 15 percent rebate on Energy Star appliances. You must reserve the rebate after obtaining a home energy assessment from a Maryland-approved contract, and the job must cost at least $1,000.

Local Tax Incentives

A few communities in Maryland offer tax breaks for purchasing Energy Star appliances and products. Anne Arundel County offers a 50 percent reduction in property tax up to $2,500. Harford County offers a $2,500 rebate on property tax, up to $5,000 per year, for installing a solar or geothermal device. Prince George's County also offers a property tax credit worth up to $5,000 for improving home energy efficiency.

Tip

If you make less than 200 percent of the federal poverty level, you may qualify for a weatherization grant funded by the federal government and distributed through the state of Maryland. You must contact the MEA to apply for this program because all energy audit and retrofitting occur through local agencies and contractors.

References

• EnergySavvy: Energy Rebates and Tax Credits in Maryland
• EnergySavers: Approved Energy Efficient Appliance Rebate Programs
• EnergyStar: 2011 Federal Tax Credits for Consumer Energy Efficiency
• Maryland Energy Administration: MEA Home Performance Rebate Program
• U.S. Department of Energy: Apply for Weatherization Assistance