New Maryland law abates property tax, increases incentives for renewable energy. From the solar-energy trade association on legislation Gov. O'Malley signed last week.

For homeowners (House bill-377/Senate Bill-207) increases the maximum incentives for state grants for solar applications and broadens them to include geothermal heat pump technology up to $3,000 at $1,000 per ton of heating. The bill also addressed key tax issues that have been barriers to solar energy adoption. Funding incentive levels for solar water heating equipment - now also includes space heating and cooling technology - increases from 20% or $2,000 to 30% or $3,000, whichever is less, of installed cost. Solar electric (photovoltaic) installations will increase from 20% or $3,000 to $2,500 per KW of installed capacity not to exceed $10,000. Geothermal heat pumps will receive a $1,000 per ton credit, not to exceed $3,000. The bill’s tax provisions make the sale of solar systems exempt from sales or use tax - which is 6% of the material cost of solar hardware. Perhaps the most valuable provision for the long-term growth of the industry is that this bill exempts the owners from property taxes on the value of their solar technology.