Incentive Zones

The City of Frederick encompasses four State and federal incentive zones.

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Special Incentives Zones

State-Designated Zones

  1. Arts & Entertainment (A&E) District
  2. Enterprise Zone


Qualifying Arts and Entertainment enterprises located in the Arts and Entertainment (A&E) District.


  • Property tax credit (City and County) based on the increase in assessed valuation on a portion of commercial property renovated/constructed for a certified arts use
  • State income tax subtraction modification for qualifying artists for income derived from their in-district sales
  • Exemption from the Admissions and Amusement Tax

Learn More

Learn more about Arts and Entertainment Districts.

Federally-Designated Zones

  1. Historically Underutilized Business (HUB) Zone
  2. Opportunity Zone


For small, American-owned business with its principal office located in a Historically Underutilized (HUB) Zone in which at least 35% of its employees live in a HUB Zone.


  • Preferential consideration for government contracts
  • Ability to compete for set-aside contracts, and a 10% price evaluation preference in full and open competitions

Learn More

Learn more about the HUBZone Program.