(b) The sales and use tax does not apply to the sale, on or before July 1, 2004.
of:

(1) a fuel cell that:

(i) generates electricity and heat using an electrochemical
process;

(ii) has an electricity-only generation efficiency greater than
35%: and

(iii) has a generating capacity of at least 2 kilowatts;

(2)      a natural gas heat pump that has a coefficient of performance of at
least 1.25 for heating and at least 0.70 for cooling:

(3)      an electric heat pump hot water heater that yields an energy factor
of at least 1.7;

(4)      an electric heat pump that has a heating system performance
factor of at least 7.5 and a cooling seasonal energy efficiency ratio of at least 13.5:

(5)      a central air conditioner that has a cooling seasonal energy
efficiency ratio of at least 13.5; or

(6)      an advanced natural gas water heater that has an energy factor of
at least 0.65.]

(a) (1) in this subsection, "energy star product" means an
air conditioner. clothes washer or dryer. furnace, heat pump.
standard size refrigerator. compact fluorescent light bulb.
dehumidifier. or programmable thermostat that has been
designated as meeting or exceeding the applicable energy star
efficiency requirements developed by the united states
environmental protection agency and the united states
department of energy.

(2) THE Beginning in calendar year 2011. the weekend
that consists of the saturday immediately preceding the third
Monday in February through the third Monday in February each
year shall be a tax-free weekend during which the exemption under
paragraph (3) of this subsection shall apply.

- 277 -

Martin O'Malley, Governor

Ch. 6