By Nicholas A. Redding
Preservation Maryland is proud to announce our role in the introduction of federal legislation, a first in the organization’s (almost) 90-year history.
The Program: In Maryland, owners of certified historic structures are potentially eligible for to earn a 20 percent state income tax credit on qualified rehabilitation expenditures. Known collectively as the Heritage Structure Rehabilitation Tax Credit program, there are three specific historic rehabilitation tax credits currently available in Maryland:
The Challenge: Funding for the competitive commercial tax credit has been reduced by nearly 90% since its creation in 1996. Virginia, by comparison invests nearly $100 million annually in their program – making preservation work in Virginia potentially more attractive to developers of large-scale, catalytic rehab projects.
Our Position: Preservation Maryland believes the State of Maryland should increase their investment in historic rehabilitation tax credits. We have spearheaded the creation of the Maryland Historic Tax Credit Coalition and will be submitting legislation to effect a stepped increase in funding for the large commercial tax credit program – starting with $15 million for FY22. This will be a first step to getting the program to full funding at $30 million in FY25.
That same legislation to will also streamline and increase the efficiency and efficacy of the historic tax credit program. It will allow for the simple transfer of the credit to decrease the cost of completing projects.
The legislation will also allow extend the authorization of the program to 2028.