Maryland awards state historic tax credits for large commercial projects through a competitive application process. Rehabilitation projects are selected based on merit and adherence to the Secretary of the Interior’s Standards and awarded tax credits with a $3 million per-project cap until the maximum budgeted investment from the state of $9 million is met.
FROM THE MARYLAND HISTORICAL TRUST
The application period for the Competitive Commercial credit is now open. Applications are due August 31, 2017.
Owners of income-producing properties have the opportunity to earn a state income tax credit that is equal to 20 percent of eligible rehabilitation expenses for substantial rehabilitation projects. The tax credit for a single project is capped at $3 million. Substantial rehabilitation projects are defined as projects with eligible expenses that exceed the greater of the adjusted basis value of the structure or $25,000.
ADVOCACY
In 2016, thanks in part to the advocacy work of Preservation Maryland, the Maryland Heritage Structure Rehabilitation Tax Credit was reauthorized for an additional 5 years. The competitive commercial tax credit program is authorized for $30 million but, for the last three years, has been funded at $9 million for the entire state. One of Preservation Maryland’s priorities during this upcoming session of the Maryland General Assembly will be working to increase the funding for this program.