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Small Commercial Tax Credit

Shops in Hyattsville

The Maryland Historical Trust is now accepting applications for Small Commercial projects. Eligible projects may earn a state income tax credit equal to 20 percent of qualified rehabilitation expenditures.

Small commercial rehabilitations are defined as projects that do not exceed $500,000 in total qualified rehabilitation expenses and are not used for more than 75 percent residential rental purposes. The credit is capped at $50,000 in a 24-month period and must have a minimum of $5,000 of eligible expenses to qualify.

The state small commercial tax credit may be used with federal and local historic tax credits. Federal applications are reviewed by MHT in coordination with the National Park Service and should be submitted simultaneously for a streamlined review. MHT review is independent of local review and may not be waived or substituted for local approval. Please contact your county or municipality for more information about local tax credits.


Krugs Small Business

Application Process

Please read the Small Commercial Application Instructions and all supporting materials prior to filling out the application. To download and fill out the actual forms, please read the instructions below.

Downloading fillable PDF application forms

These forms work best with Acrobat Reader 10 and above.

  1. DO NOT open the forms in a browser tab or window (e.g., do not simply click the link).
  2. To download and save, right click on the link and choose "Save Link As..." from the menu
  3. Save the file somewhere on your computer that you will remember.

Open the forms in the Adobe Acrobat Reader (third-party PDF readers may not work).

Application Forms (right click to save)

  • Part 1 certifies that a building is a certified historic structure
  • Part 2 certifies that the proposed project meets the requirements of the program
  • Part 3 certifies that the completed project meets the requirements of the program

Associated Forms

Applications will be accepted on a rolling basis until the program appropriation cap of $4 million is reached.


Eligiblity

To be eligible for the tax credit, a building must:

  • Be income-producing
  • Not contain more than 75% residential rental use
  • Be a certified historic structure, defined as having at least one of the following designations:
    • Individually listed in the National Register of Historic Places
    • A contributing resource within a National Register Historic District
    • A locally designated structure or contributing resource ​within a local historic district that MHT determines to be eligible for the National Register
    • Located within and certified as contributing to the significance of a certified heritage area

Eligible Work

Artwells

All aspects of the project and application must be reviewed and approved by MHT prior to commencing work and meet the Secretary of the Interior’s Standards for Rehabilitation.

The tax credit may be used for projects that return a structure to a state of utility through repair or alteration, making possible an efficient use while preserving portions and features of the structure, site and environment that are historically, architecturally or culturally significant.

Examples of eligible projects include, but are not limited to:

  • Roof repair and replacement
  • Chimney repair and lining
  • Window restoration
  • New storm doors/windows
  • Masonry repointing
  • Floor refinishing
  • Structural repairs
  • Plumbing, electrical and mechanical systems
  • Architectural/ Engineering/ Consulting fees
  • Tool/equipment rental
  • Repair of historic outbuildings

Examples of ineligible projects include, but are not limited to:

  • Landscaping
  • Sidewalks, patios, driveways
  • Non-historic outbuildings
  • Appliances
  • New construction
  • Carpeting over historic flooring
  • Curtains, blinds, rugs or other interior décor
  • Tool/Equipment purchases
  • Work that is primarily remodeling in nature
  • Pest control, chimney cleaning, drain cleaning, etc.

If you have questions about the application process or eligible expenses, please contact tax credit staff.

  • Megan Klem, Preservation Officer, at 410-514-7688