HISTORIC RESTORATION AND REHABILITATION
A new tax incentive for Historic Landmarks and Districts
Baltimore City is offering a new property tax incentive program that will save thousands of dollars for owners of
landmark designated properties and properties located in one of the city's historic districts. Properties individually included in the Baltimore City Landmark list and the National
Register of Historic Places, as well as properties located within local
districts (approximately 7,000 properties) and national
districts (approximately 14,000 properties) will benefit. The new program, called the Property Tax Credit for Historic
Restorations and Rehabilitations, is a 10 year, comprehensive tax program that helps the
City in its mission to preserve Baltimore's historic neighborhoods by encouraging property owners in these districts to complete substantive rehabilitation projects. The program keeps the assessed tax of the renovated or rehabilitated property at the same level as it was before the start of renovation for the next 10 years. Credit is for 100% of the City tax assessment increase if the rehabilitation of the property is certified by the Commission for Historical and Architectural Preservation (CHAP).
- This is
Baltimore City's first tax credit designed to benefit owners of
historically designated property.
- Ten-year tax
credit for all renovations, interior and exterior, is the most
generous in Baltimore City and will be the most comprehensive in the
- Credit will
benefit both homeowners and businesses.
- Goal of the
program is to help preserve Baltimore's neighborhoods by
encouraging restoration and rehabilitation.
- Credit is
fully transferable to a new owner for the remaining life of the
Register Historic District Historic District
Bolton Hill .
Business and Government Center
Charles Village Abell Loft*
Druid Hill Park
Little Montgomery Street
Market Center (Pending)
Saint Paul Street
City Historic District
Eutaw Place/Madison Ave.
Mill Hill Deck of Cards
Mount Royal Terrace
Upton's Marble Hill
How do I apply
for the credit?
contact the Baltimore City Commission for Historical and
Architectural Preservation (CHAP) at 410-396-4866, x-4, to request
an application form.
property must be historically designated (Baltimore City
Landmark, National Register individual designation, or contributing
to either a Baltimore City or National Register Historic District).
restoration or rehabilitation plans must be reviewed and approved by
CHAP before you begin any work on your building, if you wish
to receive the tax credit. Rehabilitation must follow CHAP's Historic
- You must
invest a minimum of 25% of the full cash value of your building.
How do I
receive the credit?
will review your plans before you begin work (pre-
certification) and then inspect the actual work ~ its completion
completion of the work, CHAP forwards a copy of the approved
application to the State Department of Taxation.
- The State
Department of Taxation will advise Baltimore City's Department of
Collections regarding the amount of tax credit and a new bill will
be sent to you, the property owner.
credit will be equal to 100% of the eligible expenditure which would
result in an increase in City property tax payable.
of Tax Savings
Substantial improvement of a property does not necessarily result in a -
property value increase for tax purposes. All examples are for
illustration 1 purposes. Actual circumstances of assessments may
vary from the example.
Example: An owner of a two story building, who runs a business on
the ground floor and resides on the top floor, decides to make a
substantial improvement. After the improvements, the property's value
increases &from $283,000 to $458,000. The assessment also increases
from $113,200 to $183,200. The historic tax credit program may save the
property owner as much as $40,000 in property taxes over the life of the
Example: An apartment owner rehabs existing units and adds 10 new
units. The improvement and expansion increases the property value from
$430,000 to $930,000. The assessment also increases from $172,000 to
$372,000. The historic tax credit program may save the property owner as
much as $117,000 in property taxes over the life of the credit.
Example: An hotel owner rehabs and doubles the number of existing
rooms. The rehab and expansion increases the property value & from
$2.4 million to $3.6 million. The assessment also increases from
$960,000 to $1.4 million. The historic tax credit program may save the
property owner as much as $280,000 in property taxes over the life of
Owner-Occupied Residential Property
Example: A rehabilitated kitchen and dining room benefits the ~~
entire family, but also may increase the property taxes. The home -1
that was worth $60,000 and assessed at $24,000 IS now worth
$105,000 and assessed at $42,000. The historic tax credit program
may save the home owner as much as $11,000 in property taxes
over the life of the credit.
Example: A developer purchases a run-down house valued at $15,000
and assessed at $6,000. After rehabilitation, the home is worth $135,000
and assessed at $54,000. The assessment increase brings with it higher
property taxes. Since the historic tax credit is transferable, a new
owner may save as much as $28,000 in property taxes over the life of the
For more information about the Baltimore City Property Tax Credit for
Historic Restorations and Rehabilitations contact the Commission for
Historical and Architectural Preservation, 417 E. Fayette Street, Suite
1037, Baltimore, Maryland 21202, (Phone 410- 396-4866, x-4) or Fax