City Incentives

Downtown Traffic

The following is a summary of locally-administered business incentives programs - with a brief overview of the eligibility, benefits, and application process of each. These summaries are not comprehensive. For full details and requirements, please visit the links provided.

Conditional Grants

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 (PDF) 
  • Download Application (PDF) 

Façade Improvement Grant Program

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

Mission: Interior 

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

Fire Suppression Program

Administered by the Downtown Frederick Partnership

  • Eligibility: the owner of a commercial, multi-family residential or mixed-use building must be seeking a new water connection of up to 4 inches to the City water main in an existing building greater than 50 years old
  • Benefits: Provides a grant of up to $15,000 for connection to City’s water main
  • Application: Contact Downtown Frederick Partnership at 301-698-8118 for application procedure details
  • Full program details

Tax Credits

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 (DOCX)

Enterprise Zone

  • Eligibility: New and existing businesses located in designated Golden Mile area and with qualifying property improvements and/or job creation
  • Benefits: 
    • 10 year City/County tax credit based on increase in real property tax assessments (80% during the first 5 years, then decreasing 10% annually)
    • a one-time $1,000 state income tax credit for each qualified employee filling a new position
    • a three year state income tax credit for each qualified new economically disadvantaged employee ($3,000 in Year One, $2,000 in Year Two, $1,000 in Year Three)
  • Application: To capture the property tax credit, capital projects must receive certification prior to the commencement of work. Income tax credits can be claimed within the year of the employee's hire
  • Application form (PDF)
  • Full program details

Vacant Commercial Property 

  • 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 (PDF)

New Jobs & Enhanced Jobs 

  • Eligibility: Construction of a 5,000 Square Feet 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 letter of intent must be completed prior to the start of hiring and construction
  • Full program details 
  • Download Application (PDF) 

High Performance Buildings 

  • 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 (PDF)

Commercial & Industrial Business 

  • 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% to 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

Historic Preservation Property Rehabilitation 

  • 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 (PDF)

Downtown Property Rehabilitation 

  • 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

Arts & Entertainment District 

  • Eligibility: Qualifying Arts and Entertainment enterprises located in the A&E District
  • Benefits:
    • Property tax credit (City and County) based on the increase in assessed valuation on a portion of commercial property renovated/constructed for a certified arts use
    • State income tax subtraction modification for qualifying artists for income derived from their in-district sales
    • Exemption from the Admissions and Amusement Tax

Brownfields Property 

  • 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