Competitive Commercial Tax Credit
NOTICE — FY2023 Competitive Commercial Applications Now Available
FY2023 Competitive Commercial Applications are now available. Applications are due by August 31, 2022. If you have any questions about the status of an existing application or guidance on the submission of a new application, please contact Kate Jaffe at firstname.lastname@example.org
NOTICE — Changes to Competitive Commercial Revitalization Tax Credit
HB0027/SB289 was passed by both the House and Senate Chambers and signed into law by Governor Hogan with an effective date of July 1, 2022. Please note the following changes:
- For each of the fiscal years 2023-2031, the appropriation to the Reserve Fund for competitive commercial projects increases to $20,000,000 annually.
- The cap on Qualified Rehabilitation Expenditures for commercial projects increases to $5,000,000 for any project that does not qualify as either a level 1 or level 2 opportunity zone; $5,250,000 for a project that qualifies as a level 1 opportunity zone project; and $5,500,000 for a project that qualifies as a level 2 opportunity zone project.
Owners of income-producing properties have the opportunity to earn a state income tax credit (capped at $5 million) that is equal to 20 percent of eligible rehabilitation expenses for substantial rehabilitation projects. Substantial rehabilitation projects are defined as projects with eligible expenses that exceed the greater of the adjusted basis value of the structure or $25,000.
Please read the Competitive Commercial Tax Credit 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.
- 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
To be eligible for the tax credit, a building must:
- 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 the Certified Heritage Area
All aspects of the project and application must:
- Be reviewed and approved by MHT prior to commencing work*
- Meet the Secretary of the Interior’s Standards for Rehabilitation
*This requirement is waived if a Federal Part 2 was approved by the National Park Service for the scope of work prior to the state application deadline. However, any work started prior to the State Part 2 approval will not be eligible for the tax credit.
Eligible expenses are chargeable to a capital account and incurred to rehabilitate the structure after the application fee is paid and the Part 2 Application is approved.
Rehabilitation is defined as work that will 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.
If you have questions, please contact tax credit staff.