Building Owners Wanting Montgomery County LEED Certification Tax Credit Must Submit ‘Intent to Apply Application’ by Jan. 1

Building owners interested in pursuing Montgomery County’s property tax credit for LEED certified commercial and multifamily buildings are reminded by the County’s Department of Environmental Protection (DEP) and Department of Finance that they must submit applications for the credit, or notify the County of their intent to apply, by Jan. 1.

In September 2020, the County established a new Energy-Efficient Buildings property tax credit to improve the energy efficiency of existing and newly constructed buildings, and recently passed amendments to better implement the incentive program.

The innovative Energy-Efficient Buildings property tax credit program aligns with the County’s ambitious climate goal of eliminating greenhouse gas emissions by 2035 by shifting the primary focus of incentives from building certifications alone to demonstrated energy improvements. The two-tier incentive program design is the first of its kind in the nation.

As part of the establishment of the new Energy-Efficient Buildings property tax credit, the current property tax credit for energy and environmental design awarded to commercial and multifamily properties for earning qualified LEED certifications will be retired. The process, as recommended by stakeholders, ensures that building owners that made business decisions based on the existence of this incentive will be able to earn the credit in a reasonable amount of time.

Key dates for building owners to know about the sunsetting LEED certification tax credit:

• Building owners pursuing property tax credit for energy and environmental design for an eligible LEED-certified commercial or multifamily building must either submit a completed application with their LEED Scorecard, or submit an Intent to Apply Application form, by Jan. 1, 2022.
• After Jan. 1, only buildings that appear on the Intent to Apply list will be eligible to receive the sunsetting property tax credit for energy and environmental design.
• Eligible buildings pursuing a LEED-Existing Buildings credit will need to submit completed applications with the LEED Scorecard no later than Jan. 1, 2023.
• Eligible buildings pursuing a LEED-Core and Shell or LEED-New Construction credit will need to submit their completed application with the LEED Scorecard no later than Jan. 1, 2024.
• After Jan. 1, 2024, commercial or multifamily owners seeking a tax credit for a high-performance building will be directed to the new Energy-Efficient Buildings property tax credit.

Offering energy-efficiency incentives to building owners is a key component of the County’s Climate Action Plan that is focused on reducing greenhouse gas emissions from the commercial and multifamily built environment. The property tax program also allows building owners to prepare early for pending Building Energy Performance Standards and more stringent building code requirements, such as the recently adopted 2018 International Green Construction Code.

More information about the new property tax credit and application forms will be released in the coming months.

Important information and links to applications:

• Access to the application form for the property tax credit for energy and environmental design.
• The Intent to Apply Application form.
• Information about the sunsetting property tax credit for energy and environmental design.

For more information, contact energy@montgomerycountymd.gov or sign up for DEP’s Commercial Energy News email list for updates on the new Energy-Efficient Buildings property tax credit.

Questions about submitting property tax credit applications can be directed to the County’s Division of Treasury in the Department of Finance at 240-777-0311.