The revitalization of Maryland communities is fueled by the Historic Revitalization Tax Credit program. Maryland’s historic tax credit is a ready-made tool for economic recovery in the wake of the coronavirus pandemic. In light of the immense challenges facing Maryland’s economy in the coming months and years, the importance of Maryland’s Historic Revitalization Tax Credit to the financial recovery of the state cannot be overstated. Senator Guy Guzzone and Delegate Stephanie Smith have introduced legislation (SB659/HB865) that will help fund the Small Commercial program of this effective community redevelopment tool.
We recognize the positive impact that historic preservation projects can have for the surrounding community. Unfortunately, one of the key programs that encourages such projects has been depleted of funding. The Small Commercial Historic Tax Credit program provides essential assistance to small business and developers who are looking to rehabilitate small, Main-Street type historic structures. During the 2019 legislation session, Preservation Maryland, along with our supporters, successfully advocated to eliminate a provision in the program that required a percentage of the rehabilitated structure be dedicated to a commercial use. The program could now be used for the rehabilitation and creation on of residential units to sell to homeowners, including rowhouses.
Unfortunately, because the program has been so successful, it has completely run out of funding, having exhausted the initial $4M authorized amount. It has been the backbone for many Main Street projects across the state and now has the potential to be used to transform vacant houses into vibrant historic homes for many for whom home ownership had long been out of reach. But, without more funding to the program, these shovel-ready projects will not be able to move forward.
The forthcoming legislation will extend the life of the program that encourages private investment in historic revitalization project by increasing the authorization for the Small Commercial Historic Tax Credit Program by an additional $1M. While this amount does not come close to addressing the present need of shovel-ready projects across the state, it will help keep the program active.
Unlike the Small Commercial program, the Competitive Commercial Historic Revitalization Tax Credit program must receive funding in the state budget every year. As of FY21, Maryland has invested only $9M for the year for the entire state. By comparison, Virginia invests nearly $100M annually, and West Virginia invests $30M. Maryland is falling behind.
Since its creation in 1996, this 20% tax credit program for the rehabilitation of historic structures has invested over $400 million in brick-and-mortar commercial redevelopment projects across nearly every jurisdiction in the state, created nearly 30,000 jobs, and yielded nearly $3.5 billion in economic activity.
As the state is faced with a staggering decrease in tax revenues, it’s worth noting that, according to a recent report from the Abell Foundation, the state Historic Revitalization Tax Credit generates positive revenue for the state and increases local property tax revenues. When buildings are rehabilitated, they pay more in local taxes which support better schools, roads, and healthcare without the need for more state dollars.
Preservation Maryland and our supporters have worked diligently to make policy changes to strengthen this essential revitalization tool. Unfortunately, without more funding for the program, those positive changes have little opportunity to make the intended impact for communities across Maryland. We will not know what Governor Hogan’s FY22 Budget will include for this key preservation program until it is released on January 20, but we stand ready to defend any included funding and to fight for an increase.
Maryland’s preservation grant programs had gone completely unfunded since FY10. Because of our advocacy, in FY18, funding was restored to the Capital and Non-Capital grant programs. Current funding continues at starvation level, with the need far outstripping available funds. We must and will do more to support those safe-guarding our state’s rich and unique history. Unfortunately, in past tight economic years, preservation programs have often become the victims of budget cuts, so protecting essential funding for preservation grant programs is a priority for Preservation Maryland over the coming session.
The African American Heritage Grant Program provides direct grant support for capital (bricks-and-mortar) upgrades and repairs to sites representing Maryland’s African-American historical experience. As with the Capital and Non-Capital Grant programs, the funding requests for this program are consistently greater than the available funding.
(SB81/HB414) Over the last 25 years, the state has completed five major studies on the feasibility, need, and economic impact of high-capacity, fixed route transit service to Southern Maryland, and despite the conclusion of every study repeatedly confirming that the Southern Maryland Rapid Transit project would vastly improve the quality of life for Southern Maryland residents, promote economic development consistent with smart growth, and advance the State’s emissions reduction goal, the Maryland Department of Transportation has not moved forward with the project. SB81/HB414 would require the State to complete the necessary steps to complete the Southern Maryland Rapid Transit project and commit the necessary funding.
(HB236) The increase of glass in new building construction in Maryland, and worldwide, threatens to undo energy conservation efforts, costs the state money, and contributes to climate change, while also causing the deaths of an estimated 1 billion birds annually in the United States, who fly into buildings, bridges, and other manmade structures.
This bill would require the Maryland Department of General Services to establish standards for state buildings and those buildings with 51% or more state funding to reduce the amount of energy-inefficient and bird-dangerous glass. Glass greater than 10% of the first 40 feet of building facades and 40% above 40 feet would need to be shaded, screened, or patterned with visible or UV films, frits, or etching. Such standards would reduce energy costs and reduce bird fatalities by more than 90%. Lighting during non-operational night times would also be limited to save energy and reduce bird attraction.
(HB583/SB414) This omnibus bill will increase Maryland’s greenhouse gas reduction requirements to 60% below 2006 levels by 2030 and net neutral by 2045. The bill would also task the Commission on Environmental Justice and Sustainable Communities to determine what percentage of all state funds invested in climate change must go to overburdened communities. The bill will also create a work group comprised of IBEW, AFL-CIO, registered apprenticeships, construction laborers, and building tradespeople to make recommendations for workforce development and training for displaced fossil fuel workers. Finally, the bill will enact simple, effective policies to reduce and mitigate emissions including planting 5 million trees by 2030, with 10% to be planted in underserved urban areas of the state.
In 1969, the Maryland General Assembly created Program Open Space through the institution of a transfer tax of .5% on every real estate transaction in the state. Since then the program has been responsible for:
The Maryland Heritage Areas Authority is funded by Program Open Space. Preservation Maryland supports full funding of Program Open Space and the Heritage Area Authority, opposes any attempts to shortcut, reduce, or cap the program in any way, and we support the repayment of previous diversions from the fund.
When you spend money along Maryland’s Main Streets, you’re supporting local businesses and the historic properties that they steward. If you like window shopping on foot, trying new local restaurants, collecting art and antiques – and need to do some holiday shopping – then Small Business Saturday, held this weekend on November 27, 2021 is for you.
Before Europeans arrived in Maryland there were many tribes of indigenous people with complex communities and languages, and while these tribes differed in several ways, they shared many aspects of their culture, too, like music. In honor of Indigenous Peoples’ Day, Preservation Maryland is sharing an introduction to the sounds and songs of Maryland’s first people.
Project Restore will provide $25 million to fill vacant retail and commercial buildings and support business investment, job creation, and economic growth in Maryland‘s communities. Businesses opening or expanding into vacant retail and commercial properties may be eligible for Project Restore grants from the Maryland Department of Housing and Community Development. Project Restore grants can help new and growing businesses with rent payments and operating costs in their first year. Please visit https://dhcd.maryland.gov/projectrestore for more details. The “Notice of Funding Availability” is now online. The department will post a sample application in the coming weeks, and the application portal is projected to open the week of September 7th-10th.
As a result of Preservation Maryland and its many partners’ ongoing advocacy, six projects across Maryland recently received over $9 million in historic tax credit funding. As a result, over $73 million worth of projects will move forward – underscoring the significance of preservation advocacy and power of revitalization incentives.
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President & CEO Nicholas Redding testified today, in front of the federal subcommittee on National Parks, Forests, and Public Lands (NPFPL), in support of H.R. 4494 to authorize the Secretary of the Interior to acquire land in Frederick County for the Historic Preservation Training Center (HPTC) of the National Park Service.
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UPDATE 11/10/21:Thank you to everyone who participated in the survey to identify historically significant schools. Preservation Maryland, through a grant from the Maryland Historical Trust’s Historic Preservation Non-Capital Grant program, is working with our consultant at Cox|McLain Environmental Consulting, Inc. to conduct a Study to document the architecture and history of public K-12 schools built in Maryland before 1980. The request for submissions yielded close to 100 responses identifying over 100 unique schools around Maryland. We thank everyone who participated for helping to strengthen this project which will provide a framework for evaluating the architectural and historic significance of the state’s public schools and a roadmap for future preservation activities. We will keep you updated on this project through our newsletter and social media.
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Last week, the House Ways and Means Committee passed infrastructure budget reconciliation legislation that includes provisions to expand the federal Historic Tax Credit. Unfortunately, current negotiations with leadership to reduce the cost and scope of the bill means that all historic tax credit provisions are in jeopardy.
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Preservation Maryland applauds Senate President Bill Ferguson and House Speaker Adrienne Jones for the creation of the new State Park Investment Commission. With visitorship reaching all-time highs in the last year, there has also been an unprecedented strain on the current state parks and their resources. Chaired by former Governor Parris N. Glendenning, the new commission will be tasked with making recommendations for improvements of current parks and the need for new parks in “recreational deserts.”
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Finding funds for your preservation rehabilitation project can be complex and confusing. Fortunately, in Maryland, there are many programs designed to help private property owners maintain and rehabilitate their historic structure. Historic tax credits are a critical tool and may be just the funding boost you need to get your project completed!
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One of the most popular community engagement activities in Smart Growth is the Main Street Program. In 1998, the Maryland Department of Housing and Community Development created a comprehensive downtown revitalization program called Main Street Maryland. For more than 20 years, this program has improved the economy, appearance, and image of Maryland’s downtown districts.
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In an Executive Order announced earlier this year, Governor Larry Hogan established the Maryland Semiquincentennial Commission to coordinate the commemoration and observance of the 250th anniversary of the Declaration of Independence, Revolutionary War, and founding of the United States. In honor of the 4th of July, we are again sharing the news and Preservation Maryland’s role as one of the statewide nonprofits to be represented on the commission.
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As a nonprofit with the sole mission of preserving Maryland’s historic buildings, neighborhoods and landscapes through outreach, funding, and advocacy, Preservation Maryland has its finger on the pulse of news affecting the preservation community. Read below for recent news from across the state about historic preservation funding and advocacy.
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In Maryland, tax credits for rehab projects have revitalized communities statewide, saved thousands of historic buildings, and created billions in state revenue.
Smart Growth Maryland is a campaign of Preservation Maryland which advocates for a more environmentally and economically sustainable future that creates opportunities for all Marylanders through better development patterns.
Thanks to this program, nearly all Marylanders are just 15 minutes away from a state, local park or public open space.
Promoting and enhancing the history of Maryland is a big job – and one that fuels one of the state’s most important industries: Heritage Tourism.
Federal agencies oversee key funding programs and policies that protect America’s historic resources from needless destruction.
State funding for preservation benefits all Marylanders – and has saved historic resources from Oakland to Ocean City.
Several key state agencies are charged with protecting Maryland’s history – a job that requires adequate resources.
All across the state, local governments have realized the value of a well-preserved community and many offer lucrative programs to assist with rehab efforts.
Main Street Maryland’s traditional downtown economic and cultural districts are the cornerstones of local communities throughout the State of Maryland.
