Historic Preservation Tax Credit Program
Anne Arundel County announces the launch of its
New Tax Credit Program for Property Owners of Historic Buildings
Anne Arundel County is now accepting applications for its recently created Historic Preservation Tax Credit which will help offset expenses related to rehabilitation on historic landmarks in the County. The Historic Preservation Tax Credit establishes “Landmark” buildings and districts, and provides a property tax credit in the amount of 25% of qualified expenses for certain historic residential or income-producing properties, or 5% for a qualified new construction in a Landmark Historic District. The maximum amount of the tax credit is $50,000, which can be claimed over a 5-year period.
"This credit helps preserve the character of our communities by giving historic property owners a helpful tool to restore their property," said Councilman Chris Trumbauer, who introduced the bill in response to a constituent’s inquiry late last year.
The tax credit brings Anne Arundel County on par with its neighboring jurisdictions, several of which have offered local tax credits encouraging historic preservation for many years. For a property to qualify the Office of Planning and Zoning must certify the building or historic district meets the criteria detailed in the legislation, to be determined a County “Historic Landmark.” The criteria consider the structure’s age, its significance to County history, and the physical integrity of its historic form. Expenditures for certain interior or exterior preservation, restoration and rehabilitation work on these landmark properties may qualify for the tax credit, so long as the work meets standards that ensure the historic nature of the property is not compromised. Infill construction within a Landmark Historic District will also qualify for a 5% tax credit so long as the new construction is architecturally compatible with the surrounding district.
To receive the tax credit, a historic preservation easement is required to protect the County’s investment.
About 50 individual buildings and four National Register listed historic districts in the County (including Woodwardville, Owensville, Linthicum Heights, and Davidsonville) already meet the criteria for landmark status and may qualify for the credit. The legislation also makes provisions for properties and districts that have not yet been evaluated to be given landmark status.
The program includes four steps, and the full application can be downloaded here.
- Part 1, the Certificate of Eligibility, documents the history of the property and its current integrity for certification as a Historic Landmark.
- Part 2 is the Certification of Proposed Work, in which the applicant’s proposed project is evaluated to ensure it will be carried out in a way that maintains the historic character of the property.
- Part 2 Addendum: Modification to Proposed Work
- Part 3, the Certification of Completed Work, ensures the work was performed as described.
- Part 4A, the Tax Credit Application to the Office of Finance for Year 1, is the final step and must be filed by April 1 for the tax credit to be applied to that year’s tax bill.
- Part 4B, Tax Credit Application to the Office of Finance for Years 2 to 5.
More details on the Historic Preservation Tax Credit, including application forms, qualifying properties, and qualifying types of work, can be downloaded below. You may also contact Cultural Resources Staff at 410-222-7432 for more information or to discuss your project or community.
- Frequently Asked Questions
- Information on Qualified Work
- Flow Chart of the Historic Tax Credit Application Process
AN ORDINANCE concerning: Real Property Taxes
Legislative Day 1
Introduced by Mr. Trumbauer and Mr. Smith, Vice Chairman (by request of the County Executive)