A new Baltimore County property tax credit rewards homeowners for making costly efficiency upgrades designed to save cash over time.
The credit, which could save homeowners $1,800 over three years, covers improvements to heat and air conditioning systems, as well as upgrades to windows, insulation and roofing. The county council unanimously approved the credit in early June, and it took effect last week.
The measure is intended to encourage improvements to existing homes by offering efficiency incentives similar to those for new construction.
"My goal is to get older homes upgraded and new homes built with energy-saving options," said Councilman Vincent Gardina, who sponsored the measure. "This is an effort to sustain our resources."
The county already offers tax incentives for new construction built to Leadership in Energy and Environmental Design — or LEED — standards, but Gardina has received many calls from owners of older homes asking for similar consideration. The new law promotes energy conservation for existing homes that upgrade dated energy systems, he said.
Homeowners must lay out about $400 for a professional energy audit, which determines where a home is losing energy and how to correct the losses. The audit includes a second assessment after the renovation work is completed.
"This tax credit creates a profound change in the way the county deals with energy renovations to older homes," Gardina said. "We are talking about credits of at least 30 percent, based on the efficiency achieved."
Few older homes will exceed a 50 percent increase in efficiency, he said, but that should still equate to significant savings for three years of property tax payments.
"This is strictly geared to energy conservation and a reduction in energy costs," he said.
Officials do not have an estimate of what the credit will cost or a firm idea of how many residents might apply for it, he said.
Homeowners who take advantage of the program will ultimately reap additional savings on their energy bills, he said.