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HB 87

Income Tax - Energy Efficient Home Improvement Credit

2026 Regular Session Introduced by Joe Vogel

Maryland bill establishes income tax credit for residents installing energy-efficient home improvements like solar panels and insulation systems.

Hearing 1/29 at 1:00 p.m.
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WeVote Research Nonpartisan
Bill Summary · HB 87

Legislative bill overview

HB 87 creates a state income tax credit for Maryland residents who make energy-efficient home improvements. The bill allows taxpayers to claim a credit against their state income taxes for qualifying upgrades like insulation, HVAC systems, solar panels, and other energy-saving modifications. The credit amount and eligibility requirements will be determined through the legislative process as the bill moves forward.

Why is this important

Energy-efficient home improvements can reduce household utility costs and carbon emissions, but upfront expenses often deter homeowners from making them. A tax credit lowers the effective cost of these improvements, potentially increasing adoption rates and supporting Maryland's climate goals. This represents the state using tax policy as a tool to encourage residential energy conservation.

Potential points of contention

  • Cost to state budget: Tax credits reduce state revenue; debate will likely center on how much the state can afford and whether direct rebate programs might be more efficient
  • Credit parameters: Key disagreements may emerge over which improvements qualify, credit caps per household, income eligibility limits, and whether renters are included
  • Fairness concerns: Critics may argue that homeowner tax credits primarily benefit higher-income households who can afford improvements and pay taxes, while lower-income residents gain less benefit

Compiled from official sources — confirm details with the bill’s official record.

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