Maryland - Solar Energy Grant Program good for geothermal?

[spikedmd]

So on the Maryland tax form I see the section for solar energy grant tax break if you received a 1099-G from the state. We did install geothermal last year and got a 1099-G for that from the state (that I entered on federal return)... I don't see geothermal called out specifically anywhere in the MD tax form for breaks. Can I or should I enter that in the solar section? Seems kind of silly to get a grant and then be taxed on it.

[DMarkM1]

Yes, you are correct.  There is a subtraction from MD state taxes for a Solar Energy Grant received and reported as income (1099-G) in the federal "Wages & Income" section. 

1. Edit your MD state interview
2. Edit the "Income" section
3. Scroll down to the "Home" section
4. Start the "Solar Energy Grant Program" topic 

[spikedmd]

right, i understand that. I'm asking if that section also applies to geothermal energy grants?

[DMarkM1 · Accepted solution]

No.  The Solar Energy Grant program is different from the Clean Energy Grant Program where the geothermal grants are offered.  While both programs are managed by the Maryland Energy Administration, they are funded differently.  There is no MD subtraction for Clean Energy Grants for geothermal installs.     

In this Solar Energy Grant program link you will find those grants are for low to moderate income applicants in specific areas of MD and for solar installs only.  

The geothermal installs fall under the Clean Energy Grant program with different funding and is taxable at the state and federal level (see the "Tax Status" paragraph in this link).