Charles County has launched a new tax credit program to encourage commercial property owners to reinvest in rehabilitating older commercial buildings.
The Commercial Real Property Improvement and Rehabilitation Tax Credit defers and phases in new real estate property taxes that result from the increased property value due to property renovations.
“The objective of this incentive program is to revive vacant and underutilized properties, building on what we view as an increasing demand for commercial space in Charles County,” said Economic Development Department Chief of Development Taylor Yewell, who helped create and will manage the program. “There are already prime examples of commercial property rehabilitation in the county, and we hope that this program will eventually help revitalize all commercial and mixed-use districts.”
According to a County press release:
To qualify for the tax credit, a property must be in a Priority Funding Area, which includes most of the developed areas of Charles County. An interactive map is available through the Maryland Department of Planning. Commercial property owners must apply for the credit through the Economic Development Department. Once approved, the credit will be applied to new taxes generated by the increase in property value, as determined by property assessments from the State of Maryland.
The increase in the assessed value must be greater than $100,000 and not exceed $3,000,000. The credit will be 100% in the first year, 80% in year two, 60% in year three, 40% in year four, and 20% in year five.