Historic Tax Credits

Baltimore City has a wealth of historic properties and historic districts! If you own a home in an historic district, or if you are looking to purchase a home with the charm of history, we want to make sure you know about several great historic preservation and rehabilitation tax credit programs!

Baltimore City Historic Properties

For a list of neighborhoods in the National Register of Historic Districts and the Baltimore City Historic Districts, visit the Commission for Historical and Architectural Preservation (CHAP) website at www.baltimorecity.gov.

To determine if your property falls within a National, State, or City level historic district, you can also use Baltimore City's iMAP feature at maps.baltimorecity.gov/imap.

Baltimore City Historic Restoration and Rehabilitation Property Tax Credit

What are the benefits?

This program was designed to encourage historic restoration and preservation in Baltimore City. This is a 10-year program, with the credit granted on the increased value of a historic property due solely to the qualified historic improvements.

What do I need to know?

All work plans must be approved by CHAP BEFORE beginning any work.
This program applies to residential and income property.
Properties located in national register and/or locally designated historic areas are eligible.
The rehabilitation costs must exceed 25% of the pre-rehabilitation cash value of the property.
All unused credit is fully transferable to a new homeowner.

As this is an historic preservation program, rehabilitation work must conform to historic standards. Projects such as painting, sanding, installing plumbing, air conditioning, re-working foundations, and more are eligible for this credit. There are projects, like removing historic components of the house and installing vinyl windows or siding, that are NOT eligible. It is recommended that you contact CHAP or a consultant to determine project eligibility.

For more information:

Baltimore City's Commission for Historical and Architectural Preservation
417 East Fayette St, 8th floor
Baltimore, MD 21202
Phone: 410.396.4866
Website: www.baltimorecity.gov

Maryland State Sustainable Communities Rehabilitation Tax Credit

What are the benefits?

This program is available for single-family, owner-occupied residential properties and is equal to 20% of the qualified rehabilitation expenditures for the project. Homeowners are not eligible for the Federal tax credit (former program), as the Federal credit can only be applied to income-producing properties. The qualified rehabilitation expenditures in a 24-month period must exceed $5,000 for owner-occupied residential property.

An income tax credit equal to 20% of the qualified renovation costs, where you can receive a maximum of up to $50,000. (With a qualified $250,000 historic renovation to your home, you would earn the $50,000 credit.) This credit is applied toward any income taxes that you owe. You would receive a check for any amount that exceeds your required taxes.

What do I need to know?

This program applies to residential and income property.
Properties located in national register and/or locally designated historic areas are eligible.
A minimum of $5,000 of renovation work must be done.
All work plans must be approved by the Maryland Historic Trust BEFORE beginning any work.

As this is an historic preservation program, rehabilitation work must conform to historic standards. Projects such as painting, sanding, installing plumbing, air conditioning, re-working foundations, and more are eligible for this credit. There are projects, like removing historic components of the house and installing vinyl windows or siding, that are NOT eligible. It is recommended that you contact the Maryland Historic Trust or a consultant to determine project eligibility.

The Maryland Historical Trust will charge a fee of 3% of the amount of the tax credit.

For more information:

Maryland Historical Trust
Bonnie Baden
Office of Preservation Services
bbaden@mdp.state.md.us
Phone: 410.514.7628
Website: mht.maryland.gov