The Downtown Frederick Arts & Entertainment District incorporates the following three programs: Property Tax Credit, an Admissions and Amusement Tax Exemption and a State Income Tax Subtraction Modification.
a. Property Tax Credit: The City of Frederick shall grant exemptions from the increase in city real estate taxation which is attributable to rehabilitation of real property located within the area known as the Downtown Frederick Arts & Entertainment District so as to encourage capital reinvestment and revitalization of existing facilities in the Downtown Frederick Arts & Entertainment District, all to be done in accordance with the following Program guidelines:
1. The eligible properties shall be located within the Downtown Frederick Arts & Entertainment District, as set forth on the following map.

2. The property tax credit shall run for not longer than seven (7) years in which the rehabilitated property is subject to taxation.
3. The property shall be exempt from the City real estate taxation based on the increase in assessed valuation of the property attributable to rehabilitation as defined below:
(a.) Eligible properties shall be located within the designated Downtown Frederick Arts & Entertainment District boundaries.
(b.) Only that portion of the property rehabilitated for a certified arts and/or entertainment use shall be exempt.
(c.) The exemption schedules are based on the gross value of the rehabilitation.
(d.) Projects which begin construction in FY04 (July 1, 2003 - June 30, 2004) shall use the following exemption schedule:

(e.) Projects which begin construction in subsequent years (FY05+) shall use the following exemption schedule:

(f.) The Downtown Frederick Arts & Entertainment District City property tax credit shall end on June 30, 2013 and no new projects after that date shall be accepted into the program. Any projects already accepted into the Program shall continue to receive tax credits as specified in c)(5) above,
b. Admissions and Amusement Tax Exemption: The City of Frederick will exempt businesses offering certified arts and/or entertainment activities within the Downtown Frederick Arts & Entertainment District from the Admissions and Amusement Tax through June 30, 2013.
c. State Income Tax Subtraction Modification: The City of Frederick endorses the State Income Tax Subtraction Modification as defined by the State of Maryland. (Res. 03-44, § 1, 7-17-03)