Baltimore City has nearly 70 neighborhoods that are designated as historic districts containing over 50,000 residential and commercial buildings. Nearly all of these structures are eligible for city and state historic tax credits when undergoing rehabilitation work. Click here for more information on the state historic tax credit program.

Homeowners

People who own their own homes are eligible for a state income tax credit of 20% off the cost of qualifying rehabilitation work, up to $50,000 in credits. Qualifying work includes things like installing a new roof, painting (interior and exterior), upgrading electric or plumbing service, and sanding wood floors. To qualify, the home must be located inside a designated historic neighborhood, must have been built as part of the historic development of the neighborhood, and the owner must spend more than $5000 on rehabilitation work over two years. The Baltimore Commission on Historical and Architectural Preservation provides a list and maps of National Register and locally designated historic districts here.

• For example, Jane Doe owns an 80-year old house inside the Mayfield historic district. She plans to paint her house, repair the wood windows, install central air-conditioning, and upgrade some of the electrical work. The total cost of rehabilitation work is $50,000. Provided Ms. Doe files the application before she does the work, and receives approval prior to starting, she is eligible for a $10,000 income tax credit from the State of Maryland.

Homeowners are also eligible for a property tax credit from Baltimore City for the same type of historic rehabilitation work. The city credit offsets the increase in property assessment resulting from the rehabilitation work for ten years. To qualify, the home must be located inside a designated historic neighborhood, must have been built as part of the historic development of the neighborhood, and the rehabilitation work must exceed 25% of the assessed value of the house. Click here for more information on the Baltimore City Tax Credit Program website.

• For example, John Smith owns a 100 year old house inside the Seton Hill historic district. He plans to sand the floors, fix a leaky foundation, upgrade the plumbing, and re-point the exterior bricks. The total cost of rehabilitation work is $75,000. The assessed value of the house (according to the official tax records) is $150,000 before the rehabilitation work, and will be $225,000 after the work. Provided Mr. Smith files the application before she does the work, and receives approval prior to starting, his property taxes will continue to be assessed using the pre-rehabilitation value of $150,000 for ten years after completion of his project.

Baltimore Heritage works with neighborhood associations and other groups to provide talks and hands-on assistance in accessing the tax credit programs. For information or to schedule a neighborhood meeting on tax credits with one of our staff, please call Baltimore Heritage at 410-332-9992.