Maryland – Energy Equipment Regulation

SALT Report 2942 – The Maryland Comptroller adopted a new regulation to provide additional guidance for the geothermal, residential wind energy, and solar energy equipment sales and use tax exemption.

The exemption applies to sales of equipment and other materials that are attached, applied, fabricated, or assembled so that it comprises a complete geothermal, residential wind energy, or solar energy system.  However, materials such as sand, gravel, and grout, although necessary for the system to be built properly, is not considered equipment or a component of the equipment, and is not exempt from tax.

Vendors may accept a signed statement from the buyer that certifies that the tangible personal property being purchased is qualified geothermal, residential wind energy, or solar energy equipment.  This statement must be kept in the vendor’s sales records. However, if sales tax is paid on the sale of an item that qualifies for the exemption, the person who paid the tax may apply to the Comptroller for a refund.

The provisions in regulation §03.06.01.43 were effective August 19, 2013.

For Further Information

Maryland Comptroller of the Treasury – Reg. §03.06.01.43