City Incentives

Below is a summary of the City's business incentives programs -- with a brief overview of the eligibility, benefits, & application process of each. These summaries are not comprehensive. For full details and requirements, please visit the links provided.

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GROW Grant Program 

  • Eligibility: Property improvement projects for City businesses with fewer than 25 full-time employees - AND - that are within the industries of advanced technology, manufacturing, life sciences, and IT, OR in a location that would provide a catalytic effect on the area immediately surrounding the business
  • Benefits: 1:1 matching grant up to maximum of $5,000 (and up to $10,000 match for graduates of FITCI)
  • Application: A meeting with the Department of Economic Development is required prior to application; application must then be submitted PRIOR to the commencement of the work 
  • Full program details 
  • Download Application 

Business Personal Property Tax : Phase Out 

  • Eligibility: The City business personal property tax is currently being phased out automatically for all businesses. Application for an additional exemption is available to manufacturing equipment acquired after January 1, 2015
  • Benefits: a 10-year tax phase out (provided through tax credits) of City's business property tax - to be completed 2025; manufacturing equipment acquired after January 1, 2015 may be eligible for a 100% tax credit
  • Application: For those seeking the manufacturing exemption - return the Application Form to the City's Department of Economic Development on or before October 1st each year 
  • Full program details
  • Download Application

Vacant Commercial Property Tax Credit

  • Eligibility: Rehabilitation of a commercial property that has been vacant and marketed for at least 18 of the last 24 months prior to the start of rehabilitation
  • Benefit: 7 year property tax credit (City and County) on the increased assessed value of the property and calculated by the City's Exemption Schedule
  • Application: Following the completion of project work, submit application and all back-up documentation by April 30th for the tax credit to be applied on the following Fiscal Year’s bill 
  • Full program details
  • Download Application

Façade Improvement Grant Program

---- Administered by the Downtown Frederick Partnership, Golden Mile Alliance, & East Frederick Rising

  • Eligibility: Facade improvement projects to businesses located in one of three program areas
  • Benefits: 1:1 match on qualified exterior facade improvements up to $10,000 (*up to $23,500 in Golden Mile area)
  • Application: Contact administering organization directly for specific application procedure
  • Full program details: 

Commercial and Industrial Business Tax Credit

  • Eligibility: Manufacturing business making new investments totaling at least $100,000 AND adding at least 3 net new full-time jobs.
  • Benefits: A 10 year tax credit of 20% - 100% (depending on investment/job creation size) of the incremental tax increase attributable to the new investment as determined by the MSDAT
  • Application: Contact the Department of Economic Development
  • Full program details

New Jobs and Enhanced Jobs Tax Credit

  • Eligibility: Construction of a 5,000 SF in new or expanded facilities AND the creation 25 net new full time jobs over a 24 month period
  • Benefits: 6 year tax credit based on the MSDAT assessed value of the new/expanded facility ---- 52% Credit (Year 1 and 2), 39% Credit (Year 3 and 4), 26% (Years 5 and 6)
  • Application: A LOI must be completed prior to the start of hiring and construction
  • Full program details 
  • Download Application

Downtown Frederick's Mission: Interior Grant 

---- Administered by the Downtown Frederick Partnership

  • Eligibility: Interior improvement projects to businesses located in Downtown Frederick
  • Benefits: 1:1 match on qualified interior improvements up to $5,000
  • Application: The application deadline normally falls in late Winter/early Spring. Contact Downtown Frederick Partnership at 301-698-8118 for application procedure details.
  • Full program details


Historic Preservation Property Rehabilitation Tax Credit

  • Eligibility: HPC approved rehabilitation work to the exterior of a building located with the Historic District Overlay  
  • Benefits: a property tax credit (City and County) for 25% of eligible work, up to a maximum of $7,500
  • Application: Applications are due by April 1st following the calendar year in which the expenditures were incurred
  • Full program details: call the Planning Department at 301-600-1499
  • Download Application


Golden Mile Property Tax Credit 

** Note -- those potentially eligible for the Golden Mile Property Tax Credit should consider application for the State's newly designated Enterprise Zone program

  • Eligibility: any property located within the Golden Mile district qualifies, provided that the rehabilitation increases the value of the property
  • Benefits: a 7 year property tax credit on the increased assessed value of the property and calculated by the City's Exemption Schedule
  • Application: Following the completion of project work, submit application and all back-up documentation by April 30th for the tax credit to be applied on the following Fiscal Year’s bill 
  • Full program details  
  • Download Application 

High Performance Buildings Tax Credit

  • Eligibility: New LEED certified (or equivalent) buildings 
  • Benefits: Tax credit granted as percentage of the City’s property tax, determined by the performance rating of the building
  • Application: Following the completion of project work, submit application and all back-up documentation by April 30th for the tax credit to be applied on the following Fiscal Year’s bill 
  • Full program details
  • Download Application 


Downtown Property Rehabilitation  Tax Credit 

  • Eligibility: Rehabilitation of property located in Downtown Frederick
  • Benefits: 7 year property tax credit (City and County) on the increased assessed value of the property and calculated by the City's Exemption Schedule
  • Application: Following the completion of project work, submit application and all back-up documentation by April 30th for the tax credit to be applied on the following Fiscal Year’s bill. Contact the Department of Economic Development for the application.
  • Full program details


Brownfields Property Tax Credit

  • Eligibility: Voluntary cleanup or corrective action plan of a qualified brownfields property
  • Benefit: 5 year tax credit (City) of 50% of the property tax attributable to the increase in the assessment of the qualified site, including improvements added to the site during the credit period
  • Application: Contact the Department of Economic Development. 
  • Full program details