Bill > HB87

This bill establishes an income tax credit for individuals in Maryland who make energy-efficient home improvements, allowing them to claim up to 30% of the costs, with an overall cap of $3,200 per taxable year. The credit applies to "energy efficient home improvements," which include home energy audits, qualified energy efficiency improvements, and residential energy property expenditures, with specific dollar limits for different types of improvements such as a $150 limit for audits, $600 for most residential energy property expenditures, $600 for windows and skylights, and $500 for exterior doors. Notably, there's a separate, higher limit of $2,000 for specific items like heat pumps, heat pump water heaters, or biomass stoves/boilers, though the total credit for these specific items is still subject to the overall $3,200 annual cap. The improvements must be made to the taxpayer's residence and originally placed in service by them, with provisions for how the credit is calculated for multiple dwelling units, cooperative housing corporations, and condominium associations, and it cannot be claimed for improvements purchased with "subsidized energy financing," which refers to loans from government programs aimed at energy conservation or production. This legislation is set to take effect on July 1, 2026, and will apply to tax years beginning after December 31, 2025.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0087?ys=2026RS