Commercial Tax Credit Programs

Arts & Entertainment District and Tax Credits
Designated as an Arts & Entertainment District by the State of Maryland, downtown Frederick is the area’s hub of arts, culture and entertainment. The A&E District offers several incentives for arts organizations and property owners, including an A&E Property Tax Credit, an Artist Income Tax Credit, and the abatement of the A&A tax for qualified arts and entertainment establishments. For more information on the program, contact the A&E District managers - Downtown Frederick Partnership at 301-698-8118 or the Frederick Arts Council at 301-662-4190.

Golden Mile Revitalization District and Tax Credits
Route 40 West, also known as the Golden Mile, is the traditional retail corridor in Frederick. Home to the area’s first enclosed mall, the Frederick Towne Mall, the Golden Mile is home to department stores, independent merchants, national restaurants and a growing cluster of ethnic stores and restaurants.

In early 2000, the Golden Mile began to lose some of its shine. Major retail anchors - Montgomery Ward’s and Hechinger’s - had closed their doors across the nation. These large vacancies contributed to a perception of decline along this once thriving retail corridor. In response, the City of Frederick undertook a neighborhood planning effort that resulted in a detailed report and recommendations list.

The City enacted the Golden Mile Tax Credit program, aimed at the rehabilitation of existing structures. The County partnered with the City to enact similar legislation. The program offers abatement on the increase in property taxes that result from rehabilitation of properties, with taxes phased in over 7 years. Within 18 months, more than $20 million in private investment poured into the area and every major vacancy was filled with retailers such as Boscov’s, Home Depot and Wolf Furniture. The program is set to sunset December 31, 2010.

Downloads

• Golden Mile Revitalization Report
• Golden Mile Brochure
• Golden Mile Tax Credit Application

Historic Tax Credits
In an effort to revitalize historic structures and downtowns, historic tax credits are available at the federal, state and local level in Frederick. Downtown Frederick is a designated historic district – at 40 blocks in size, it is the largest contiguous historic district in Maryland. City and County property tax credits are available for the rehabilitation of buildings within the Downtown Frederick Historic District. All construction and renovation projects within the district require review/approval from the Historic District Commission – guidelines, district maps and more can be found on the City of Frederick website by Clicking Here.

Downloads

• Frederick Historic Property Tax Credit Application

Maryland offers the Maryland Rehabilitation Tax Credit, which provides Maryland income tax credits equal to 20% of the qualified capital costs expended in the rehabilitation of a “certified heritage structure.” This includes structures located within a historic district, such as Downtown Frederick. To qualify, the project must be reviewed and approved by the Maryland Historical Trust PRIOR to the start of construction.

The Federal Historic Preservation Tax Incentive program is administered by the National Park Service. This program currently offers 10-20% federal income tax credit, based on the costs of renovation on a certified historic structure. More information on the federal program is available through the Maryland Historical Trust by calling 410-514-7620 or click here to visit the National Park Service website.

Vacant Commercial Structures Tax Credit
Following the success of the Golden Mile Tax Credit program, the Vacant Commercial Structures Tax Credit is aimed at filling vacant commercial structures in the City and throughout Frederick County. Both the City and County enacted legislation to allow for the abatement of property taxes on the increase of property value resulting from renovations. The property must have been vacant for 18 months or more. The program is set to sunset on December 31, 2009.

Downloads

• Vacant Commercial Structures Tax Credit Application

Frederick County has a separate application for County tax abatement – please contact the Frederick County Treasurer’s Office at 301-600-1111.