MHT Administering New Sustainable Communities Tax Credit
CROWNSVILLE, MD – As of January 1, small business owners will have access to an exclusive historic tax credit. This comes on the heels of action taken last year by the Maryland General Assembly to expand the 19-year program. The Maryland Sustainable Communities Tax Credit-Small Commercial program supports small scale historic rehabilitation, funding projects such as roof repair, façade replacement, refinishing floors and restoring windows.
Administered by the Maryland Historical Trust, the tax credit program encourages historic rehabilitation to preserve Maryland history and to support historic communities across the state. Often, historic districts serve as a lynchpin for the success of towns, cities and suburban centers. For that reason, small commercial projects must be located in a designated Sustainable Community to be eligible for the tax credit.
Small commercial property owners may receive a 20 percent 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.
Release courtesy The Maryland Department of Planning