Can an income tax credit boost the market for behind-the-meter energy storage systems? Yes, but in Maryland’s experience that measure alone is not enough to unlock the market’s full potential.
In 2017, Maryland became the first state to pass legislation establishing an income tax credit for energy storage systems.
Last month, the Maryland Energy Administration (MEA) announced it was accepting applications for the state’s energy storage income tax credit for the 2019 tax year. The deadline for residential and commercial customers to submit applications is January 15, 2020.
This year, up to $750,000 is available ($300,000 for residential customers, $450,000 for commercial customers) on a first-come, first-served basis.
Tax credits are capped at 30 percent of the total installed system cost, or up to $5,000 for residential systems and up to $75,000 for commercial systems. Maryland’s energy storage income tax credit is funded at $750,000 annually through the 2022 tax year.
First-year program results
Given the program’s constraints (more on that below), program officials said they have been pleased with the results so far.
“We are encouraged with the performance of the program in year one, knowing that building on current energy storage technology is key to the State’s renewable energy future,” Mary Beth Tung, MEA director, said in a statement.
In 2018, in the program’s first year, 61 residential customers and one commercial customer in Maryland claimed the energy storage income tax credit.
GTM asked MEA officials why just one commercial customer took advantage of the tax credit last year.
Click Here to Read Full Article
Recent Comments