Property Tax - Agricultural Use Assessment - Community Solar Energy Generating Systems
Summary
HB734 amends Maryland property tax law to expand and clarify when land used for community solar energy generating systems can qualify for agricultural use assessment. The bill extends the Public Service Commission approval deadline from December 31, 2025 to December 31, 2030 for qualifying community solar projects placed in service after June 30, 2022, allowing more projects to benefit from the agricultural assessment treatment if they are paired with agrivoltaics.
The bill also requires the State Department of Assessments and Taxation to issue a preconstruction determination on application, stating whether land will be assessed as farm or agricultural use land. The application must include parcel information, a site plan, an agrivoltaics plan, construction timing, evidence of site control, and any other information the Department needs. The Department may rescind a determination if the project materially changes, the operator fails to notify the Department after construction, agricultural activity is not maintained, or the application contained inaccurate information. The Department is also authorized to charge a fee to cover administrative costs.
Impact
HB734 changes Tax-Property § 8-209(e) by creating a more detailed administrative process for qualifying community solar land as agricultural use land and by extending the eligibility window for PSC-approved projects. It affects solar operators, landowners, and the State Department of Assessments and Taxation by establishing a formal preconstruction review, post-construction verification, and potential fee structure, while preserving the agricultural assessment benefit for qualifying agrivoltaic projects.
Sentiment
The bill appears to have been generally favorable in the legislature, passing the House 97-26 and the Senate 34-10. The vote margins suggest broad support for encouraging community solar development while preserving agricultural tax treatment for land that remains in agricultural use. No committee transcript was provided, so the available record shows support through passage but not detailed debate.
Contention
The main points of contention likely centered on how far to extend tax eligibility for solar projects and how strictly to police the agricultural-use requirement. Potential concerns include whether extending the PSC approval deadline to 2030 broadens the tax benefit too much, whether the Department’s preconstruction determinations and rescission authority create enough oversight, and whether application fees or compliance requirements could burden solar developers and landowners. Supporters likely viewed the bill as a way to promote agrivoltaics and community solar while protecting farmland use, while skeptics may have worried about tax base impacts and administrative complexity.