Energy-Efficient Buildings Property Tax Credit – Existing Buildings

Montgomery County Code, Section 52-103A

Eligibility: This property tax credit is available to energy-efficient buildings that meet the following criteria:

A commercial or multi-family residential building in Montgomery County, MD
has or will have at least 10,000 square feet of gross floor area
has received a Certificate of Occupancy from the Department of Permitting Services
has achieved at least a minimum 50% occupancy rate for at least 12 consecutive months, and
has installed energy improvements consistent with the requirements of Montgomery County Code, Section 52-103A with demonstrated energy reductions through ENERGY STAR Portfolio Manager.

Guidance for Tax Credit Application Submissions:

Baseline and Improved ENERGY STAR Score 12-month time periods must not:
- overlap
- include the energy conservation device installation period
- be more than 6 calendar years apart.
The Baseline and Improved ENERGY STAR Score 12-month time period must use the same ENERGY STAR score metric reference data.
The Baseline ENERGY STAR Score 12-month time period must not begin earlier than August 26, 2018.
Improved ENERGY STAR 12-months cannot have been issued more than 12 months before the application date.
ENERGY STAR Data Verification Checklists must be verified by an accredited building professional, which are a licensed Professional Engineer (PE) or Registered Architect (RA) that are in good standing.
Energy-efficient buildings located in MWCOG's Equity Emphasis Areas at the time of application are eligible for an additional 10% credit. To see if your building is located within an Equity Emphasis Area, use this GIS map and click on the magnifying glass in the bottom toolbar to enter your building's address.

Guidance for Reapplications:

Each building is eligible for a maximum of 3 applications – one initial application and two reapplications.
The Baseline ENERGY STAR score for reapplication cannot be older than the previous application’s Baseline ENERGY STAR score; However, the reapplication baseline score can overlap with the previous application’s Improved ENERGY STAR baseline.
Reapplications where the Building Sustainability Tax Credit was previously earned, the building must achieve a higher level of certification than the earlier application.

Energy-Efficient Buildings Application Instructions:

All fields with a red asterisk (*) are required. Click the "Next" button in the bottom right corner to fill out the Application Form. Click the "Previous" button to go back and amend information on a prior screen. Click the "Submit" button when you are ready to submit your completed Application Form to Treasury.

Once you submit this form, it cannot be amended. The County will review and verify all data reported on this form, which may alter the final Combined Energy-Efficient Buildings Property Tax Credit amount earned.

Is this Property located in a MWCOG Equity Emphasis Area?

Yes

Property Tax Account Number

Property Owner Telephone #

Property Owner Email Address

Applying for:

The Energy Reduction Tax Credit

Both the Energy Reduction Tax Credit and the Building Sustainability Tax Credit

SECTION 1: ENERGY REDUCTION TAX CREDIT

1) Is this building newly constructed or extensively modified? (If YES, your building may be eligible for Property Tax Credit – Newly Constructed Energy-Efficient Buildings, Montgomery County Code, Section 52-103B.)

Yes

2) Type of Building

Multi-family Residential

Commercial

3) Gross Floor Area of the Building (square feet)

4) Describe the energy conservation device(s) installed to achieve energy reductions and the date of installation in the text bow below.

Upload energy conservation device documentation. Acceptable documentation includes: finaled DPS permit, vendor installation invoices

Click Here to Upload

5) Have you previously received the Energy Reduction Tax Credit?

Yes

5a) IF YES, list the levy year that the tax credit was received:

5b) IF YES, building owners must submit a description of improvements made since the previous application period.

6) The Energy Efficiency Tax Credit Amount below:

To calculate the tax credit for your building, subtract the 12-month Baseline ENERGY STAR score from the Improved ENERGY STAR score, then multiply the difference by the appropriate multiplier value (determined by the Improved ENERGY STAR score tier, listed below).

Improved ENERGY STAR Score Tiers	Multiplier
1-24	1.0
25-49	1.5
50-74	2.0
75-100	2.5

12-month Baseline ENERGY STAR score	12-month Improved ENERGY STAR score	Difference	Multiplier	Property Tax Credit
x	y	y-x	z= multiplier associated with y	(y-x)z

EXAMPLE: (Improved ENERGY STAR Score 80 - Baseline ENERGY STAR score 70) * Multiplier of 2.5 = 10 * 2.5 = 25% Property Tax Credit per year for 2 years.

TO RECEIVE THE PROPERTY TAX CREDIT, YOU MUST SUBMIT THE FOLLOWING:

TWO (2) ENERGY STAR PORTFOLIO MANAGER DATA VERIFICATION CHECKLISTS, SIGNED BY AN ACCREDITED BUILDING PROFESSIONAL – one documenting baseline performance and one documenting the improved ENERGY STAR score.

Enter 12-month Baseline ENERGY STAR score

Enter 12-month Improved ENERGY STAR score

Property Tax Credit Multiplier

Property Tax Credit Percent Calculated

Upload button to attach Baseline ENERGY STAR score data

Click Here to Upload

Upload button to attach Improved ENERGY STAR score data

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THE USE AND OCCUPANCY PERMIT FOR THE PROPERTY FROM DPS (Note: If the building cannot achieve the ENERGY STAR score, contact the Department of Environmental Protection to discuss using the USGBC alternative compliance path for Energy Use Intensity (EUI). Requests will be considered on a case by case basis. )

Click Here to Upload

SECTION 2: BUILDING SUSTAINABILITY TAX CREDIT

1) Green building certification achieved within the last 12 months:

a. LEED O+M Gold

b. LEED O+M Platinum

c. BREEAM USA In-Use Excellent

d. BREEAM USA In-Use Outstanding

2) Date of certification (in the last 12 months):

3) Have you previously received the Energy Reduction Tax Credit and Building Sustainability Tax Credit?

Yes

3a) IF YES, list the levy year that the tax credits were first received:

3b) IF YES, what green building certification was achieved in the previous application:

4) Building Sustainability Tax Credit Amount below:

To calculate the tax credit for your building, identify which of the following eligible green building certifications (or an approved equivalent certification) your building has achieved:

Gold or Platinum certification for LEED O+M

“LEED O+M” means the Leadership in Energy and Environmental Design rating system for Building Operations and Maintenance, administered by the USGBC.

Excellent or Outstanding Final ratings for BREEAM In-Use (both Part I and Part 2 required)

“BREEAM USA In-Use" means the Building Research Establishment Environmental Assessment Method rating system for In-Use Buildings (non-domestic buildings in their operational phase) administered by BRE Global. Final ratings for both Part 1 (Asset Performance) and Part 2 (Management Performance) must be completed to be eligible for the Building Sustainability Tax Credit.

Eligible Green Building Certifications	Building Sustainability Tax Credit
LEED O+M Gold, BREEAM In-Use Excellent (or equivalent)	25%
LEED O+M Platinum, BREEAM In-Use Outstanding (or equivalent)	50%

TO RECEIVE THE BUILDING SUSTAINABILITY TAX CREDIT, YOU MUST SUBMIT DOCUMENTATION OF THE ELIGIBLE GREEN BUILDING CERTIFICATION, AWARDED WITHIN THE LAST 12 MONTHS.

Click Here to Upload

SECTION 3: CALCULATE COMBINED TAX CREDIT

The total tax credit granted is calculated by adding the property tax credit percentage earned from the Energy Reduction Requirement and the Equity Emphasis Area Credit to the tax credit percentage earned from your building’s green building certification.

The Combined Property Tax Credit in Percent below is the sum of tax credit calculations in Section 1 and Section 2 and is automatically calculated.

Section 1: Energy Reduction Tax Credit + Equity Emphasis Areas	Section 2: Building Sustainability Tax Credit	Total Energy Efficiency Property Tax Credit
(y-x)z + a	b	((y-x)z) + a + b

Section 1:

Energy Reduction Tax Credit + Equity Emphasis Areas

Section 2:

Building Sustainability

Tax Credit

Total Energy Efficiency Property Tax Credit

(y-x)z + a

((y-x)z) + a + b

EXAMPLE: 25% Property Tax Credit for energy performance + LEED O+M Platinum credit of 50% = 75% Total Property Tax Credit against County property taxes per year for 2 years. If this building was in a verified Equity Emphasis Area, the Property Tax Credit would become 85% per year for 2 years.

Note that if deemed eligible for the Energy Reduction Tax Credit and the Sustainability Tax Credit, the total percentage cannot exceed 100% per year. If awarded, the property will receive a credit granted against the county taxes owed for two (2) years.

Combined Property Tax Credit in Percent (Will not exceed 100%)

The USGBC can be contacted at 1-800-795-1747, or on the web at: www.usgbc.org

BRE Global can be contacted at 1-415-747-5152, or on the web at: https://www.breeam.com

The Montgomery County Department of Environmental Protection (DEP) can be contacted at 1-240-777-0311, or on the web at: https://www.montgomerycountymd.gov/dep/