|
|
Incentives
for Preservation
A variety of incentives are in place at the local, state and federal
levels to encourage the rehabilitation of historic properties.
City and County Tax Incentives
The State of Maryland adopted legislation (Article 81.9C of the
Annotated Code of Maryland) to encourage the renovation and rehabilitation
of historic properties located in historic districts. The credit
provides property tax relief from the increased assessment resulting
from improvements.
To receive the credit, the taxpayer must apply for the credit
each of the five years the credit is allowable. The application
must be made by October 1. Each year's tax credit is based on
the current assessed value of the improvement only. The initial
year of the tax credit will be allowed starting with the first
complete fiscal year that the assessment is billed.
If the subject improvement is demolished either purposely or accidentally,
the tax credit will cease. Any pro-rated refund of taxes will
be subject to a reduction as the result of pro-rating the tax
credit allowed.
Contact the City of Frederick Historic Preservation Planner at
301.600.1499 or the County Commissioners Office at 301.600.1100
for more information on tax credits.
Maryland Heritage Preservation Tax Credit
Administered by the Maryland Historical Trust, the Heritage Preservation
Tax Credit Program provides Maryland income tax credits equal
to 25% of the qualified capital costs expended in the rehabilitation
of a "certified heritage structure".
- A certified
heritage structure can include structures that are:
- listed
in the National Register of Historic Places
- designated
as a historic property under local law
- located
in a historic district listed in the National Register or in
a local historic district and certified as contributing to the
district's significance or
- located
in a certified heritage area and certified as contributing to
the area's significance.
The credit
is available for both owner-occupied residential property and
income-producing property. The rehabilitation expenditure in a
24-month period must be substantial. In other words, the improvements
must exceed $5,000 for owner-occupied residential property and
|
