HB 734 Maryland House of Delegates · 2026 Regular Session

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

HB 734 extends the deadline for community solar energy systems to qualify for agricultural property tax assessment from 2025 to December 31, 2030. It applies to systems placed in service after June 30, 2022, and approved by the Public Service Commission by the new deadline. The bill ensures land used for qualifying community solar projects is assessed as actively farmed agricultural land, allowing property owners to receive lower tax rates. This directly affects landowners operating community solar systems that meet these criteria.

Bill status signed all 5 stages cleared

Introduction

Feb 2026

Committee Review

Apr 2026

House of Delegates Passage

Apr 2026

Senate Passage

Apr 2026

Signed into Law

Apr 2026

Introduced Feb 2, 2026 Signed Apr 14, 2026

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What changed between versions

First - Property Tax - Agricultural Use Assessment - Community Solar Energy Generating Systems → Third - Property Tax - Agricultural Use Assessment - Community Solar Energy Generating Systems · 4 edits

MODERATE

This bill updates the rules for community solar projects to qualify for lower agricultural property tax rates. It adds a new preconstruction determination process where the Department of Assessments and Taxation must issue a favorable ruling before construction begins, ensuring land remains eligible for tax breaks if the solar project meets specific agrivoltaic standards.

Scope change

The bill expands the scope by introducing a formal administrative review process for community solar projects, replacing the previous reliance on post-construction verification with a pre-construction approval requirement.

REQUIREMENT

Added a requirement for the Department of Assessments and Taxation to issue a preconstruction determination on whether land will qualify for agricultural assessment before construction starts.

Mandated specific application details for the preconstruction request, including site plans, agrivoltaic designs, construction schedules, and proof of site control.

TIMELINE

Extended the deadline for Public Service Commission approval of community solar systems from December 31, 2025, to December 31, 2030.

ENFORCEMENT

Authorized the Department to rescind a favorable preconstruction determination if the final project materially differs from the approved plan or if the solar operator fails to notify the department upon completion.

Floor votes · Senate Mar 16, 2026 · House of Delegates Mar 9, 2026

How they voted

36–10

Passed · 3 other

Total votes 49

Mar 16, 2026

D Democratic36

34 Yea 2

94% Yea

R Republican13

2 Yea 10 Nay 1

76% Nay

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 14, 2026

Signed into law

Approved by the Governor - Chapter 45

executive

Apr 3, 2026

Lower · Passed

Returned Passed

lower

Apr 3, 2026

Upper · Passed

Third Reading Passed

upper

Apr 2, 2026

Upper · Passed

Favorable Adopted

upper

Apr 2, 2026

Upper · Passed

Favorable Report by Budget and Taxation

upper

Mar 23, 2026

Committee

Referred Budget and Taxation

upper

Mar 21, 2026

Lower · Passed

Third Reading Passed

lower

Mar 19, 2026

Lower · Passed

Favorable with Amendments {

lower

Mar 19, 2026

Lower · Passed

Favorable with Amendments Report by Ways and Means

lower

Mar 16, 2026

Senate · Passed

Senate Vote: pass (36-10-3)

senate

Mar 9, 2026

House Of Delegates · Passed

House of Delegates Vote: pass (103-27-12)

house of delegates

Feb 2, 2026

Committee

First Reading Ways and Means

lower

1 primary · 0 co-sponsors