Residential Renewable Energy Tax Credit

Note: Section 70506 of The One Big Beautiful Bill (OBBB) repealed this tax credit for any expenditures made after December 31, 2025. 

A taxpayer may claim a credit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the "placed in service" date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original

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Energy-Efficient Mortgages

 Homeowners can take advantage of energy efficient mortgages (EEM) to either finance energy efficiency improvements to existing homes, including renewable energy technologies, or to increase their home buying power with the purchase of a new energy efficient home. The U.S. federal government supports these loans by insuring them through Federal Housing Authority (FHA) or Veterans Affairs (VA) programs. This allows borrowers who might otherwise be denied loans to pursue energy efficiency, and it secures lenders against loan default.

FHA Energy Efficient Mortgages
The FHA allows lenders to add up to 100% of energy efficiency improvements to an existing mortgage loan

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Renewable Electricity Production Tax Credit (PTC)

Note: The One Big Beautiful Bill (OBBB) made significant changes to this tax credit. To qualify for the tax credit, solar and wind energy systems must be either placed in service by December 31, 2027, or construction must commence by July 4, 2026. An Executive Order issued on July 7, 2025 directed the Secretary of Treasury to issue new and revised guidance within 45 days "to ensure that policies concerning the 'beginning of construction' are not circumvented, including by preventing the artificial acceleration or manipulation of eligibility and by restricting the use of broad safe harbors unless a

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Property Tax Credit for Nonresidential Solar on Certain Brownfields, Water Retention Ponds, or Quarries

Title 9 of Maryland’s property tax code provides local governments the option to allow a property tax credit for nonresidential solar systems constructed on a brownfield or a water retention pond or quarry currently or previously designated for industrial use.

Under this provision, counties determine the amount of the credit, the duration of the credit, and any other provision necessary to carry out the tax credit. It should be noted that the statute includes the city of Baltimore in this provision because Baltimore, the city, has its own jurisdiction as a county. Maryland’s local option tax incentive is unique because

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Local Government Energy Modernization Program (L-GEM)

Description: The Local Government Energy Modernization (L-GEM) program is designed to support local governments in planning long-term energy efficiency and clean energy projects that reduce greenhouse gas emissions and reduce energy usage. The program is offering a one-time FY2026 budget of $64 million, broken down into $50 million anticipated for planning activities and renewable energy projects, $10 million anticipated for energy efficiency projects and $4 million anticipated for electrification projects.

The program includes four major areas of interest (AOIs). Please see each AOI’s linked funding opportunity announcement for more information:

  • AOI1 is a non-competitive formula block grant to support planning
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New Jersey Manufacturing Program

New Jersey A.B. 5687 created the Next New Jersey Manufacturing Program, a comprehensive tax credit designed to encourage manufacturing activities including clean energy component production at qualified businesses. The tax credit is equal to the lesser of 1) the product of 0.1% of the eligible business's total capital investment multiplied by the number of new full-time jobs; 2) 25% of the eligible business' total capital investment; or 3) $150,000,000. 

Eligible actions for the credit include manufacturing solar components, and the calculations for capital investment include installing a solar system on the property to the extent that the capital investments have

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Higher Education Clean Energy Grant Program

The Higher Education Clean Energy Grant Program is a statewide competitive program that funds solar installations, sustainability and clean energy campus planning, workforce training, and clean energy curriculum development at Maryland institutions of higher education. 

Eligible activities by program area, grant criteria, and application requirements can be accessed in the FY2026 Funding Opportunity Announcement.

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