Local Option - Property Tax Credit for High Performance Buildings
Administered by Programs locally administered
If your home earns at least a LEED Silver rating or a Silver rating under the National Green Building Standard, your county or city may offer a property tax credit. Maryland lets each locality decide whether to offer it and set the amount, duration, and requirements, so contact your local tax or permitting office to see if and how you can apply. Montgomery, Howard, Baltimore, and Anne Arundel counties have adopted credits, and Carroll County has its own separate green building credit.
Building green can give your customers a lower property tax bill when a structure reaches at least LEED Silver, NGBS Silver for residential, or another comparable State-approved green rating. Because each participating county or municipality sets its own credit amount, duration, and qualification criteria, confirm local requirements before you pitch the incentive. The credit applies to commercial, industrial, residential, and multifamily projects, including whole-building and renewable energy measures.
Under Title 9 of Maryland's property tax code, counties and municipalities may opt in to offer a property tax credit for high performance buildings. Eligible buildings must achieve LEED Silver, NGBS Silver for residential structures (added by H.B. 158 in 2012), or a comparable State-approved green rating. Localities set the credit amount, duration, and criteria, and the credit reduces local property tax revenue rather than drawing on a dedicated fund. The credit targets commercial, industrial, residential, and multifamily owners, and as of July 2015 at least four counties had adopted it.
Program details
- Program ID
- 2363
- Last updated
- 3/11/2025
Eligibility
- Sectors
- commercial industrial residential multifamily residential
- Technologies
- solar - passive solar water heat solar space heat solar photovoltaics wind (all) biomass geothermal heat pumps daylighting wind (small) hydroelectric (small) comprehensive measures/whole building
Program summary
Similar to Maryland's Local Option Property Tax Credit for Renewable Energy, Title 9 of Maryland's property tax code creates an optional property tax credit for high performance buildings. This statute allows counties and municipalities to provide a credit against the property tax for buildings which achieve at least a silver rating according to the U.S. Green Building Council's LEED standards, residential structures that achieve a silver rating under the International Code Council's National Green Building Standard (NGBS), or structures which meet other comparable green building ratings or guidelines approved by the State. The provision specifically adding the NGBS (as opposed to the general language regarding "comparable" systems) was adopted by H.B. 158 in 2012, effective for tax years beginning after June 30, 2012.
The counties or municipalities which elect to provide this property tax credit may determine the amount of the property tax credit under this section, the duration of the property tax credit, the criteria and qualifications necessary to receive the credit, and any other necessary provisions. As of July 2015 at least four counties -- Montgomery County, Howard County, Baltimore County, and Anne Arundel County -- had adopted a tax credit under this statute. Carroll County has also adopted a green building property tax credit under a separate, county specific provision (Md Code: Property Tax § 9-308(e)) of Maryland law. Please visit the links above for tax credit information on the incentives available in each county.
Contact & resources
- Contact email
- inquiry@dat.state.md.us
Please verify current program details with the administering agency before making any financial decisions.
