State historic tax credit programs

Maryland Heritage Structure Rehabilitation Tax Credit Program

Program overview:

Competitive Commercial Tax Credit:

Owners of income-producing properties have the opportunity to earn a state income tax credit (capped at $3 million) that is equal to 20 percent of eligible rehabilitation expenses for substantial rehabilitation projects. Substantial rehabilitation projects are defined as projects with eligible expenses that exceed the greater of the adjusted basis value of the structure or $25,000.


Homeowner Tax Credit:

Homeowners have the opportunity to earn a state income tax credit equal to 20 percent of qualified rehabilitation expenditures. The credit is capped at $50,000 in a 24-month period and must have a minimum of $5,000 of eligible expenses to qualify.


Small Commercial Tax Credit:

The Maryland Historical Trust will accept applications for small commercial projects on a first-come, first-served rolling basis until the program cap of $4 million has been reached. Eligible projects may earn a state income tax credit equal to 20 percent of qualified rehabilitation expenditures.


Small commercial rehabilitations are defined as projects that do not exceed $500,000 in total qualified rehabilitation expenses. The credit is capped at $50,000 in a 24-month period and must have a minimum of $5,000 of eligible expenses to qualify. Projects in a qualified Opportunity Zone may be eligible for additional tax credits.

Project cap:
Commercial: $3 million.
Small commercial and owner-occupied: $50,000.

Program details:

  • Set aside of $5 million for small commercial projects with $500,000 or less in QREs and more than 75% residential rental.
  • No more than 60% of funds available for commercial projects in any year may go to any single jurisdiction.
  • Additional 5% credit for that have received an allocated Low Income Housing Tax Credit.
  • Apply to the federal and state credits separately.
  • The state homeowner tax credit may be used with local historic tax credits, although MHT review is independent of local review and may not be waived or substituted for local approval.
  • The state small commercial tax credit may be used with federal and local historic tax credits.
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