- Tax Credit
- Statewide
Summary
The Maryland Sustainable Communities Tax Credit Program provides tax credits to support the revitalization and redevelopment of commercial and residential properties located in designated Sustainable Communities. The program is administered by the Maryland Department of Housing and Community Development (DHCD) and offers a comprehensive package of resources to support community development, revitalization, and sustainability efforts. The tax credit is capped at $50,000 over a 24-month period and requires a minimum of $5,000 in eligible expenses to qualify. The program is currently capped at $4 million worth of tax credits available per year [5]. A report on the program's effectiveness found that it has resulted in positive impacts on community development and has led to increased investments in designated areas. Legislative reforms have also simplified the framework for designated revitalization target areas.
Eligibility Requirements
- The property must be located in a designated sustainable community. A list of designated communities is available on the Maryland Department of Housing and Community Development's website.
The property must be used for commercial or residential purposes. - The property must be designated as historic, or located within a historic district, or contribute to the historic character of the surrounding area.
- The property must be in need of rehabilitation, or have been vacant for at least two years prior to the application for tax credits.
- The applicant(s) must provide evidence of financing for the project, and show that the cost of the rehabilitation work will exceed the amount of the tax credit.
- The applicant(s) must agree to comply with all program rules and regulations, and to maintain the property in compliance with local and state building codes and regulations.
- Once approved for the program, property owners may be eligible for a tax credit of up to 25% of the qualified rehabilitation expenses, with a maximum credit of $3 million per project. The credit may be taken against state income taxes, state sales and use taxes, and local property taxes.
Contact Information
Comptroller of Maryland