§ 11-2-203.2. PROPERTY TAX CREDIT FOR HIGH PERFORMANCE HOMES.

(a)

Definitions.

(1)

In this section, the following words have the meanings indicated.

(2)

"Approved building modeling system" means a software program approved for Home Energy Rating System (HERS) or the passive house planning package that is designed to measure the energy efficiency of improvements made to residential structures. For multi-family housing, energy modeling should use applicable RESNET or ASHRAE modeling systems or the passive house planning package.

(3)

"High performance home" means a new or renovated residential structure:

(i)

That achieves at least a silver rating according to the U.S. Green Building Council's LEED (Leadership in Energy and Environmental Design) for Homes rating system; or

(ii)

That achieves at least a silver rating according to the International Code Council's 700 National Green Building Standard (NGBS); or

(iii)

That achieves a minimum amount of increased energy efficiency based upon improvements made in the process of renovation or construction.

(4)

"ASHRAE" means American Society of Heating, Refrigerating and Air-Conditioning Engineers.

(5)

"HERS" means Home Energy Rating System.

(b)

Created. In accordance with § 9-242 of the Tax-Property Article of the Annotated Code of Maryland, the owner of a high performance home may receive a property tax credit against county real property taxes assessed on a high performance home.

(c)

LEED Amount and duration. For a high performance home that is certified in the LEED for Homes rating system or the NGBS rating system, the amount of the tax credit is a percentage of the total county property tax assessed on the high performance home as follows:

(1)

LEED silver or NGBS silver - 40%;

(2)

LEED gold or NGBS gold - 60%;

(3)

LEED platinum or NGBS emerald - 100%.

(d)

Energy efficient improvement—amount and duration.

(1)

For a high performance home that is certified for increased energy efficiency based upon improvements, the amount of the tax credit is a percentage of the total county property tax assessed on the high performance home that is equal to the percentage of increased energy efficiency achieved in the process of renovation or construction as measured in accordance with subsection (4).

(2)

To be eligible for a tax credit, the amount of increased energy efficiency required to be achieved by the process of renovation or construction is a minimum of 30%.

(3)

The duration of the tax credit authorized under this subsection is three consecutive years unless efficiency is designated carbon neutral then the duration of the tax credit is five consecutive years.

(4)

Measurement.

(i)

For a high performance home that is certified for increased energy efficiency based upon improvements, the amount of increased energy efficiency achieved by the renovation or construction shall be measured by a certified HERS rater, certified passive house consultant using an approved building modeling system. For multi-family housing structures modeling shall be performed by a certified HERS rater, a certified passive house consultant, or a certified ASHRAE professional.

(ii)

For existing structures, the initial measurement shall be conducted prior to the renovation to evaluate the existing level of energy efficiency. A second measurement shall be conducted at the conclusion of the renovation to evaluate the increased energy efficiency achieved by the renovation.

(iii)

For new construction, design phase energy modeling is required.

(iv)

For a high performance home that is renovated, the base line for the measurement is the existing energy efficiency of the structure. For new construction, the base line is the existing requirements of the county building codes.

(e)

One tax credit per building. A property owner may not receive more than one tax credit under this section for each high performance home.

(f)

Termination of credit for alteration. A property tax credit granted under this section shall terminate if during the credit period, the Director of Budget and Finance finds that the property has been altered so that it no longer complies with the requirements of this section.

(g)

Transferability. A tax credit granted under this section runs with the property and a change in ownership does not result in a lapse of the tax credit.

(h)

Limitation. The total tax credits for the program may not exceed an aggregate amount of $1,000,000 in any fiscal year, subject to the County Council's annual review of the program amount.

(i)

Deadline for filing application. An application for the tax credit shall be filed on or before June 1 immediately preceding the first taxable year for which the tax credit is sought.

(j)

Submission of application. An application for the tax credit shall be:

(1)

Submitted to the Director of Budget and Finance on forms that the Director requires;

(2)

Accompanied by proof that the property meets the definition of a "high performance home" and other requirements set forth in this section; and

(3)

Under oath.

(k)

Review of application. The Office of Budget and Finance shall:

(1)

Review each application for a tax credit; and

(2)

Grant or deny the application for a tax credit under this section.

(l)

Appeal of denial or termination. A taxpayer whose application for a tax credit under this section is denied or whose tax credit is terminated by action of the Director of Budget and Finance under subsection (e) of this section may appeal the denial or termination as provided in § 11-2-204 of this subtitle.

(m)

Adoption of regulations. The Director of Budget and Finance may adopt regulations in accordance with Article 3, Title 7 of the code to carry out the provisions of this section.

(Bill No. 28-08, § 1, 6-4-2008; Bill No. 43-10, §§ 1-4, 6-21-2010; Bill No. 23-12, § 1, 7-1-2012)