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HB 112

Property Tax - Agricultural Use Assessment - Community Solar Energy Generating Systems

2026 Regular Session Introduced by Brian Crosby

Maryland bill allows agricultural land with community solar systems to keep lower farm tax rates instead of being reclassified as commercial property.

Hearing canceled
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WeVote Research Nonpartisan
Bill Summary · HB 112

Legislative bill overview

HB 112 would modify Maryland's property tax assessment rules to allow agricultural land hosting community solar energy systems to retain its agricultural use assessment classification. Currently, installing solar infrastructure on farmland may trigger reclassification to higher commercial/industrial tax rates. This bill seeks to preserve the lower agricultural property tax assessments despite the presence of solar generating equipment.

Why is this important

Agricultural property taxes in Maryland are significantly lower than commercial rates, making this classification economically crucial for farmers. By protecting this status for solar host farms, the bill could accelerate renewable energy adoption on rural land while preserving farm viability—addressing both climate goals and agricultural sustainability. However, it also represents potential tax base erosion for local jurisdictions that depend on property tax revenue.

Potential points of contention

  • Tax revenue impact: Counties and municipalities may lose property tax revenue if solar-hosting farms avoid reclassification, potentially shifting tax burden to other property owners
  • Definition of "agricultural use": Unclear whether this applies only to farms that continue primary agricultural production alongside solar, or to any farmland with solar, regardless of actual farming activity
  • Community solar program scope: The bill's interaction with Maryland's specific community solar regulations and incentive structures needs clarification—whether this creates unintended advantages for certain solar developers over others

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

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