The Maryland sales and use tax does not apply to the sale of geothermal, residential wind energy, or solar energy equipment.
This exemption includes the sale of equipment and other material that is attached, applied, fabricated, or assembled that is used to comprise a complete energy system. However, material such as sand, gravel, or grout is not considered equipment or a component of equipment. As a result they are not exempt from the tax.
Vendors do not need to collect sales and use tax on the sale of qualifying equipment. Instead, they should receive a signed statement from the buyer certifying the equipment purchased is qualifying geothermal, residential wind energy, or solar energy equipment. The vendor should retain the statement with the record of sale.
If sales and use tax was mistakenly paid on the sale of a qualifying item, the payer of the tax may apply for a refund. The KatzAbosch SALT team would be happy to help with refund applications.
Please contact the KatzAbosch SALT Group if you have any questions regarding the sales and use tax exemption on qualifying energy equipment.
The SALT (State and Local Tax) Shaker is prepared by Dan Bottner, Member of the KatzAbosch SALT Group.
