Revitalization Tax Credit

Revitalization Tax Credits are designed to encourage revitalization in existing communities. The county offers eligible projects relief from taxes on any incremental value that they add as a result of making certain real property improvements. Improvements can be non-residential or residential (though the approval of the County Council is required for developments of ten or more single-family dwellings and for multifamily units), and the tax reductions vary accordingly. Ultimately, Revitalization Tax Credits allow for the increase in taxes associated with increased assessed value due to qualified improvements to be phased in over time on the schedules listed below. Please call a Business Development Specialist at 301-583-4650.

Non-Residential
For the 1st year after improvements are completed and assessed, properties receive:
 

• Credit of 100% of the amount of the county property tax imposed on the increased assessment (e.g. the incremental value created by the improvements)

The tax credit is then reduced gradually as follows:
 

• Credit of 80% of the taxes on the increased assessment in year 2
• Credit of 60% of the taxes on the increased assessment in year 3
• Credit of 40% of the taxes on the increased assessment in year 4
• Credit of 20% of the taxes on the increased assessment in year 5

Residential
For the 1st year after improvements are completed and assessed, properties receive:
 

• Credit of 100% of the amount of the County property tax imposed on the increased assessment (i.e. the incremental value created by the improvements)

The tax credit is then reduced gradually as follows:
 

• Credit of 66% of the taxes on the increased assessment in year 2
• Credit of 33% of the taxes on the increased assessment in year 3

The maximum amount of eligible residential improvements is $200,000 per dwelling unit.

For more information, contact the Economic Development Corporation at 301-583-4650 and ask to speak with a Business Development Specialist.