Stormwater Management Property Tax Credit Program

Residential and commercial property owners may be eligible to receive a credit towards their County real property taxes for the recent installation of qualified stormwater management practices.  

Credit:

  • Amount - The annual tax credit shall be 10% of the cost of materials and installation for making qualified improvements, not to exceed a total of $10,000 over the life of the credit.
  • Duration - This credit will be applied each year for five years, or until the $10,000 limit is met, whichever is sooner.
  • Limitation - The credit in any given year cannot be greater than the amount of County real property tax on that property. As this is a credit, it reduces the amount of County real property tax owed. County real property taxes cannot be reduced below $0 and a refund will not be issued if the credit amount exceeds the tax amount.
  • Example - For a project that costs $30,000 in materials and installation, the annual tax credit would be $3,000 (10% of project cost) for each year of the 5-year life of the credit or until the $10,000 limit is reached, whichever is sooner.
        Year 1: $3,000 credit
        Year 2: $3,000 credit
        Year 3: $3,000 credit
        Year 4: $1,000 credit
        Year 5: $0 credit
        Total: $10,000 credit
     

 

Requirements:

  • The application must be submitted within 45 days of completion of qualifying improvements.
  • The credit cannot be combined with other tax credits.
  • Installation must be voluntary. The qualified improvements cannot be installed as a requirement in any State or local law.
  • The qualified improvements are included on the Department of Public Works’ list of approved devices for this program. A single application can include multiple devices (same device type or a combination of different device types).

 

How to Apply:

  • Download and complete the Stormwater Management Tax Credit Application Form
  • Submit the application by email to taxcredits@aacounty.org or by mail to:
    • Anne Arundel County, Office of Finance
      Attn: Tax Credits
      PO Box 427
      Annapolis, MD 21404-0427
  • Tax credit applications are submitted to the Office of Finance and are reviewed by Department of Public Works staff.
  • The property owner will receive a written notification upon approval or denial of a submitted application.
  • If approved, the credit shall be effective beginning in the taxable year following approval and will be listed as a tax credit on the real property tax bill issued by the County. This tax credit is toward County real property taxes only.

 

Inspections:

  • Prior to a credit being approved, the practice(s) on the application will need to pass an inspection by County staff. In addition, the County has the right to inspect the practice during the life of the credit. 

 

County Code Reference:

 

WPRF Fee Credit Program:

  • Properties with on-site stormwater management practices may also be eligible for a credit that will reduce their annual Watershed Protection and Restoration Fee (stormwater fee).

    Learn More About the Fee Credit Program

 

Questions: