TAX CREDITS
Homestead Property Tax Credit
Homeowners Property Tax Credit
Historic Preservation Tax Credit
Agricultural Preservation Tax Credit
Property Tax Exemptions
Enterprise Zone Tax Credits
New Jobs Tax Credits
Foreign Trade Zone Benefits
TAX CREDIT INFORMATION - The State of Maryland and Washington County offers many tax credits and exemptions against the real property tax for which you may be eligible.
HOMESTEAD PROPERTY TAX CREDIT - To assist homeowners who are impacted by large assessment increases, the State of Maryland, Washington County, and municipalities limit the annual taxable assessment increase for owner-occupied residential properties. This homestead tax credit is administered by the State and is automatically applied to all properties listed as “Principal Residence.” Beginning July 1, 2007, the Homestead Tax Credit rates are as follows:
If you are eligible but did not receive the credit or wish to learn more about the program, please contact SDAT at 301-791-3050 or visit their website at www.dat.state.md.us/sdatweb/homestead.html.
HOMEOWNERS PROPERTY TAX CREDIT - Maryland’s Homeowners Property Tax Credit program is administered by the State and the tax credits are granted to eligible homeowners of all ages. Applications for this program must be filed by September 1, of each year. The program provides tax credits for homeowners who qualify on the basis of their household income as compared to their tax bill.
Homeowner’s Credits are displayed on the tax bills. The amount of the credit will appear on the bill and reduces the tax amount due. If the credit is issued after the taxes are paid, a refund will automatically be made to the taxpayer. If you are anticipating a tax credit, but it has not been granted as of the due date of your taxes, pay the taxes in full to avoid interest and penalties.
For further information or to request an application form, contact SDAT at 1-800-944-7403, or visit their website at www.dat.state.md.us/sdatweb/htc.html.
HISTORIC PRESERVATION TAX CREDITS - This tax credit may be granted against the amount of County real property taxes, based upon the amount expended by a taxpayer for restoration or preservation of an historic property. A property must be an historic site designated on the master plan for historic preservation, or within a historic district designated on the master plan for historic preservation. The tax credit shall be in an amount equal to ten percent (10%) of the owner’s expense for certain restoration and preservation of any existing structure up to the total amount of County real estate property taxes. A credit of five percent (5%) of the owner’s expense shall be allowed for new construction attached to an existing historic structure.
The credit shall be allowed for the tax year immediately following the work or any portion thereof is completed, and any unused portion of this tax credit, may be carried forward for as many as 5 tax years, after which the credit lapses.
For information, please contact the Washington County Planning Department at (240) 313-2430
AGRICULTURAL PRESERVATION TAX CREDITS - This tax credit may be granted against the amount of Washington County real property taxes based upon the assessed value of qualified land and improvements. Property owners must commit to remain in agricultural related pursuits for a period of ten years. The property must be located within a designated agricultural preservation district.
The credit shall be allowed for the tax year immediately following application and approval. For information, please contact the Washington County Planning Department at (240) 313-2430.
PROPERTY TAX EXEMPTIONS - There are numerous types of Property Tax Exemptions available through the State, some of the most used include exemptions for: charitable or educational properties; dwelling house of blind individual, surviving spouse; dwelling house of disabled veteran, surviving spouse; government properties; and properties owned by religious organizations.
For a full list of available exemptions, please reference The Annotated Code of Maryland Tax Property Article Title 7, Subtitle 2. General Property Tax Exemptions as follows:
Approximately 4,200 acres in Washington County are within three state-designated Enterprise Zones. Local and state incentives are available to new or expanding companies in these zones to promote growth of the industrial and commercial base. Each Enterprise Zone is approved by the state for a ten-year period.
Enterprise Zone Incentives Available to Qualifying Businesses
Local Real Property Tax Credits:
City and County property tax credits for up to ten years on capital investments.* Credit of 80% on increases in assessed value of real property for the first five years, decreasing by 10% annually for the remaining five years.
State Income Tax Credits:
State income tax credits for creating new jobs. One time credit of $1,000 for most new jobs. Credits for hiring "disadvantaged" employees (vouchered by the State): first year, $3,000; second year, $2,000; third year, $1,000.
*Note: Businesses seeking local property tax credits must apply to the Economic Development Commission prior to completing the construction or rehabilitation project. Property tax credits may not be granted retroactively.
The following is a list of Hagerstown-Washington County's specific Enterprise Zones:
Hancock Enterprise Zone
Hagerstown Regional Airport Enterprise Zone
City of Hagerstown/Washington County Enterprise Zone
Eligibility Requirements:
To qualify for Enterprise Zone benefits, a business must be located within the zone and meet minimum requirements for job creation and for capital investment. In addition, there are restrictions on certain business types.
Minimum Capital Investment: (construction/rehabilitation of real property)
- $5,000 Airport Zone; Hagerstown's Central Business District.
- $50,000 Other zone areas.
Minimum Job Creation:(permanent, full time positions)
- 1 new job Airport Zone; Hagerstown's Central Business District.
- 5 new jobs Other Zone areas.
The New Jobs Tax Credit Program provides eligible companies with a six-year tax credit against County real and personal property taxes.
In order to qualify for the program, a business must:
A business is not eligible for the tax credit program if:
The amount of the New Jobs Tax Credit a business may claim against County taxes imposed on the assessed value of the new or expanded premises is:
Contact the Economic Development Commission to learn more:
edcinfo@hagerstownedc.org
Nearly 1,800 acres of prime industrial/commercial properties are located within the Washington County, Maryland Foreign-Trade Zone (FTZ). Buildings and sites are available for development with an array of amenities including: rail, airport runway access, superior interstate visibility, municipal water and sewer, and natural gas.
What is a FTZ?
FTZs are sites designated by the Foreign-Trade Zones Board in which special
United States Customs Service procedures may be used. These procedures allow domestic activity involving foreign items to take place prior to formal Customs entry. Duty-free treatment is accorded items that are reexported and duty payment is deferred on items sold in the U.S. market.
A Few FTZ Benefits . . .
Imports may enter and be held in a FTZ without Customs duties. Duty is paid only when those imports are shipped into U.S. Customs territory.
Click here for FTZ locations in Washington County.
For more information about the FTZ Program or Washington County's FTZ, contact:
Hagerstown-Washington County Economic Development Commission
240-313-2280
edcinfo@hagerstownedc.org
Other FTZ Resources:
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