Wood Heating Fuel Exemption

Maryland does not charge the state sales tax (currently 6%) on wood or refuse-derived fuel that you buy for heating, so the savings are built into the purchase price. There is no application or rebate to file, and the exemption applies to fuel used for heating in homes or businesses. Check with the Comptroller of Maryland if you have questions about a specific purchase.

Customers who heat with wood or refuse-derived fuel, such as cordwood or similar biomass fuel, pay no Maryland sales tax on that fuel, which lowers their ongoing heating costs and can help you market biomass heating systems. The exemption covers both residential and commercial heating uses, and there is no customer enrollment process. Confirm documentation and exemption details with the Comptroller of Maryland before quoting tax treatment.

This is a statutory state sales tax exemption for wood or refuse-derived fuel used for heating, applied at the point of sale to the state's 6% sales tax rather than through a funded rebate or grant. It has no separate funding pool or application, and the cost is foregone sales tax revenue. It applies to biomass fuel purchases for both residential and commercial heating, so it reaches households and businesses alike.