Historic Revitalization Tax Credit
Passes Into Law for Condos and Co-ops
At the TCNA General Meeting on November 6, 2019, Delegate Maggie McIntosh presented the status of her proposed legislation for Historic Tax Credit for condominium associations. She said the bill is not yet written but is in the formation stage, and she wanted to give the parameters of what is being proposed after doing some research on the present program. The Historic Tax Credit is a popular program which is managed by the MD Historical Trust and is allocated to certain historical structures. Currently, approximately $11 million is appropriated annually through legislative general funds, of which $9 million go to commercial projects and $2 million goes to homeowners. The tax credit may not exceed $50,000 (20% of qualified expenditures) for homeowners (the cap for commercial projects is $3 million).
Delegate McIntosh said that she found out that individual condominium units can get historic tax credits (for things like replacing windows, chimney, etc.) but that right now there are no rights specified for a condominium association. So the conversation she will have while crafting the bill in the coming weeks will include amending the law to define condominium associations as non-commercial entities, defining the boundaries of common spaces which can be applicable, defining specific types of common space improvements eligible, and setting a dollar cap somewhere between homeowners and commercial. The funding will come from the homeowners’ side of the present funds and will be available to communities around the state which have full ownership status. Delegate McIntosh stated that there will not be a minimum amount that must be spent, and the possibility of accumulating several small projects into one larger application will be explored.
House Bill HB759
Introduced by Delegates Anderson, Boyce, and McIntosh. First Reading on January 31, 2020
Summary of Legislation:
which have full ownership status. There will not be a minimum amount that must be spent. For a copy of the bill, click here.