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Montgomery County, Maryland Division of Treasury

Finance.propertytaxcredits@montgomerycountymd.gov

27 Courthouse Square, Suite 200, Rockville, MD 20850

240-777-8965

APPLICATION FORM - PROPERTY TAX CREDIT ENERGY AND ENVIRONMENTAL DESIGN (Green Buildings Tax Credit)

Montgomery County Code, Section 52-18Q

By January 1, 2022, a building owner must submit their completed application for this Property Tax Credit or submit an Application of Intent to Apply for this Property Tax Credit.

Property Address

TO RECEIVE THE PROPERTY TAX CREDIT, THE FOLLOWING QUESTIONS MUST BE ANSWERED:

Is the building newly constructed or extensively modified? (Extensively modified refers to any structural modification which alters more than 50% of the building gross floor area, as indicated on the application for a building permit.)

Type of Building

Please upload USGBC Document(s)

USGBC RATING

The Property Tax Credit will be issued to a “High Performance Building” based upon the rating it receives from the USGBC (United States Green Building Council), or an equivalent energy and environmental design standard, as determined by the Montgomery County Department of Permitting Services.

The USGBC issues Silver, Gold, and Platinum rankings for LEED-CS, LEED-EB, and LEED-NC.

  • “LEED-CS” means the Leadership in Energy and Environmental Design – Core and Shell rating system administered by the USGBC.
  • “LEED-EB” means the Leadership in Energy and Environmental Design – Existing Building rating system administered by the USGBC.
  • “LEED-NC” means the Leadership in Energy and Environmental Design – New Construction rating system administered by the USGBC.

REQUIRED: TO RECEIVE THE TAX CREDIT, THE APPLICANT MUST SUBMIT A COPY OF THE USGBC LEED CS, LEED EB or LEED NC PROJECT CERTIFICATION (or equivalent standard) FOR THE BUILDING.

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

The Montgomery County Department of Permitting Services can be contacted at 240-777-6300.

 

Tax Credit Information

Effective December 30, 2020: The Property Tax Credit for Energy and Environmental Design will be sunset by January 1, 2025. On or before January 1, 2022, a building owner must submit their completed application for this Property Tax Credit or submit an Application of Intent to Apply for this Property Tax Credit.

After January 1, 2022: only buildings on the Intent to Apply applicant list can receive this Property Tax Credit. Buildings applying for the LEED-EB credit must submit their completed application by January 1, 2023. Buildings applying for the LEED-CS or LEED-NC credit must submit their completed application by January 1, 2024.

Application: A taxpayer must apply for the tax credit within 1 year after the building is certified as a high performance building. A “high performance building” is defined as:

1. A covered building that achieves a gold or platinum rating from the United States Green Building Council (USGBC) or an equivalent rating as determined by the Montgomery County Department of Permitting Services.

2. Any other building that achieves silver, gold or platinum rating from the USGBC or an equivalent rating as determined by the Montgomery County Department of Permitting Services.

A “covered building” means a newly constructed or extensively modified non-residential or multi-family residential building that has, or will have, at least 10,000 square feet of gross floor area.

To receive a property tax credit, a “covered building” must achieve a gold or platinum rating (or equivalent) from the USGBC, and “any other building” must receive a silver, gold, or platinum rating from the USGBC for LEED-CS, LEED-EB, or LEED-NC.

Tax Credit Amount

(1) For a “covered building,” the amount of the credit is:

(A) 25% of the property tax owed on the building for 5 years, if the building achieves a gold rating for LEED-NC or LEED-CS or an equivalent standard;

(B) 75% of the property tax owed on the building for 5 years, if the building achieves a platinum rating for LEED-NC or LEED-CS or an equivalent standard;

(C) 10% of the property tax owed on the building for 3 years, if the building achieves a gold rating for LEED-EB or an equivalent standard;

(D) 50% of the property tax owed on the building for 3 years, if the building achieves a platinum rating for LEED-EB or an equivalent standard.

(2) For any other building, the amount of the credit is:

(A) 25% of the property tax owed on the building for 5 years, if the building achieves a silver rating for LEED-NC or LEED-CS or an equivalent standard;

(B) 50% of the property tax owed on the building for 5 years, if the building achieves a gold rating for LEED-NC or LEED-CS or an equivalent standard;

(C) 75% of the property tax owed on the building for 5 years, if the building achieves a platinum rating for LEED-NC or LEED-CS or an equivalent standard;

(D) 10% of the property tax owed on the building for 3 years, if the building achieves a silver rating for LEED-EB or an equivalent standard;

(E) 25% of the property tax owed on the building for 3 years, if the building achieves a gold rating for LEED-EB or an equivalent standard;

(F) 50% of the property tax owed on the building for 3 years, if the building achieves a platinum rating for LEED-EB or an equivalent standard.

Tax Credit Annual Limits

The Director must grant credits in the order in which the Department of Finance receives complete applications. During any fiscal year, the total amount of credits issued for all buildings must not exceed $5 million, credits for buildings that achieve a silver rating (or equivalent) must not exceed $1.5 million, and credits for buildings that achieve a gold rating (or equivalent) must not exceed $2.5 million. Any credit that causes these limits to be exceeded will be issued in the next fiscal year or years.

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FOR OFFICE USE ONLY

Date Application Received: ______________________ 

 

Date USGBC Certification was achieved: ___________________

 

USGBC Rating Standard Achieved: _____________     Rating System: ___________________


High Performance Building Type: ________   Covered Building _______ or Other Building _________


TAX CREDIT ACHIEVED:__________% FOR __________  YEARS