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Accountabilityby Mark Reutter2:31 pmSep 24, 20240

Home energy credits lowered Baltimore County Executive Olszewski’s property tax bills by more than 50%

BREW EXCLUSIVE: The credits saved the county executive $12,649 in property taxes on his newly built home at Millers Island. No special treatment was given, Olszewski’s press secretary says.

Above: Johnny Olszewski at a 2022 campaign fundraiser. (Facebook)

Baltimore County Executive Johnny Olszewski cut his property tax bills by 57% by applying for home energy credits overseen by his administration.

Between 2021 and 2024, credits for solar panels and other equipment installed on the shorefront property he and his wife built on Millers Island after he became county executive offset $12,649 in property tax payments, according to online records reviewed by The Brew.

His investment in solar and other energy-saving devices was repaid almost immediately in tax credits that typically can take five years to go into effect, according to the county website.

In 2023 alone, those credits shrank his tax bill by $5,000. That year the couple paid just $633 in property taxes on a house valued at $550,000 by the Maryland Department of Assessments and Taxation.

(These credits do not include much-smaller Homestead Tax Credits that were separately granted to the Olszewski residence.)

The two-term Democratic officeholder is heavily favored to win a seat in Congress in the November general election despite an avalanche of unfavorable news articles in recent months.

In July, The Brew reported on a lawsuit, filed by former county administrator Fred Homan, that revealed a secret $83,675 county payment made at Olszewski’s behest to a firefighter friend, while the Baltimore Sun disclosed a contract for Peterbilt trucks that benefited the firefighter’s brother.

The two brothers, Philip and John Tirabassi, brokered the sale of the land where the Olszewskis built their home overlooking the Chesapeake Bay after he became county executive.

Last month, The Brew reported that Baltimore County paid an engineering consultant $90,000 to design a stormdrain system that would reduce flooding on the roadways immediately adjacent to Olszewski’s property, which is located on a FEMA-designed floodplain.

Olszewski has blamed the Tirabassi payment on a former county attorney who made an “unauthorized settlement offer” and said the county had planned to build the stormdrain system long before he purchased the Millers Island land.

He has refused calls by the Maryland Republican Party to suspend his Congressional campaign and allocated a total of $550,000 in public funds to fight the Homan lawsuit.

Firefighter who got secret cash payment handled personal real estate for Baltimore County Executive Olszewski (7/30/24)

County attorney says she was – “100%” – fired for questioning Tirabassi deal (7/31/24)

Documents show Baltimore County was set to build stormwater line to keep county executive’s Chesapeake Bay property dry (8/21/24)

In response to Brew questions about the energy credits, Olszewski’s press secretary, Erica Palmisano, said, “The county executive was eligible for, applied for and received credits, including the High-Performance Homes Credit.”

In response to a Brew request to review the application forms and other paperwork the county executive submitted to the county, Palmisano said the administration “will process and review the details in your request consistent with the Maryland Public Information Act,” which gives the county 30 days to respond to a PIA request.

She added that “the county continues to encourage residents to support sustainable and energy-efficient homes and to pursue credits for which they are eligible.”

Waiting List for Credits

County residents can claim a tax deduction for installing energy-saving systems in their homes through two programs administered by the County Office of Budget and Finance.

The Energy Conservation Devices Credit offers up to $5,000 in tax credits to residential owners who utilize solar or geothermal devices to heat, cool or supply electricity to their homes.

The High-Performance Homes Credit allows a property owner to receive tax credits for up to five years based on the percentage of energy efficiency achieved in a LEED-certified home.

Olszewski appears to have maxed out on such credits during his two terms as county executive.

What’s especially striking is how quickly the credits showed up on his property tax bills.

On its website, the Budget Office warns of a five-year cycle between the time when a energy credit is approved and when it first appears on the tax bill.

The website offers this example: “For an application approved on March 26, 2018, the applicant is eligible to be awarded the credit on the July 1, 2023 property tax bill if the property has not transferred.”

The Olszewskis’ first energy credit – for $2,450 – was applied to their 2021 tax bill, the same year that an occupancy permit was issued for their new house.

Asked about quick turnaround, Palmisano said, “The county executive was placed at the bottom of the queue consistent with other taxpayers.”

In 2022, the Olszewskis got another $2,548 credit, which knocked 47% off their property bill.

In 2023, a $5,000 credit lowered their taxes by 88%.

And in 2024, a $2,650 credit trimmed 45% off the original tab.

The Olszewskis’ current bill has no energy credits. County records show a $6,002 bill after $211 was deducted in Homestead Tax Credits.

Olszewski paid the first installment on time in July. The second installment is due by December 31.

Solar panels can be seen on the roof of the county executive's home at Millers Island. (Mark Reutter)

Solar panels can be seen on the roof of the county executive’s home at Millers Island, which was built on stilts in a floodplain about 200 feet from the Chesapeake’s Baylight Beach. (Mark Reutter)

Taxes and Credits

Below are the yearly property tax bills for the Olszewki’s home, which can be accessed through the Real and Personal Property Taxpayer System link.

The county and state property bill is listed on the first line and the Special Property Credit on the bottom line. (Also included in the bill are water, sewer and Bay restoration charges as well as any Homestead Credits.)

TAX YEAR 2021

FY 2021 Olszewski property tax bill

TAX YEAR 2022

FY2022 Olszewski bill

TAX YEAR 2023

FY 2023 Olszewski property tax bill

TAX YEAR 2024

FY 2024 Olszewski Property tax bill

TAX YEAR 2025

FY 2025 Olszewski property tax bill

Receipts and Documents

According to the county website, an applicant seeking credits for solar panels or geothermal devices must submit “detailed receipts listing the amount and date of payment and the permit number of the electrical inspection completed by the Baltimore County Electrical Inspection Office.”

There is no electrical inspection listed for the Olszewski house in the county’s online inspection database.

To obtain a High-Performance Home Credit, a home must be certified with a silver or higher LEED (Leadership in Energy and Environmental Design) rating.

For new construction, design phase energy modeling must be presented to show that a building is at least 40% more energy efficient than required by the building code.

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