New Maryland Historic Preservation Tax Credit Available for Small Commercial Property Owners
Last Updated on Jan 15, 2015 at 12:27pm | Garrett County Economic Development
Small commercial property owners take note: Apply now for a state tax credit to renovate your old buildings.
The Maryland Sustainable Communities Tax Credit-Small Commercial Program
supports historic rehabilitation on a small scale, funding projects such as roof repair, façade replacement, refinishing floors and restoring windows. The new tax credit exclusively for small commercial property owners became available January 1, following action last year by the Maryland General Assembly expanding the 19-year program.
Administered by the Maryland Historical Trust, the tax credit program encourages historic rehabilitation to preserve Maryland history as well as support older communities across the state. Often, historic districts serve as a lynchpin for the success of towns, cities and suburban centers. For that reason, to be eligible, small commercial projects must be located in a designated Sustainable Community
Small commercial property owners may receive a 20% tax credit up to $50,000 for projects that are under $500,000 in eligible costs. Tax credit applications need to be submitted and approved before project work begins. The state small commercial tax credit may be used with federal and local historic tax credits.
The small commercial program adds to the existing Homeowner Tax Credit Program
and Competitive Commercial Tax Credit Program
, which have been credited with creating jobs, enhancing values of nearby properties and transforming neglected neighborhoods. Studies have shown that every dollar of historic tax credits generates more than $8 in economic activity and each $1 million invested by the state program generates 72 jobs.