Historic Preservation Tax Credit Revised
Annapolis, MD (10-17-13) The Annapolis City Council held a public hearing on the Historic Preservation Tax Credit Ordinance (O-34-13) during Monday’s meeting. The proposed ordinance revises the provisions governing the historic preservation tax credit in Annapolis and is expected to come before Council for a vote on October 28.
The City of Annapolis provides owners of contributing historic properties, within the Annapolis Historic Landmark District, a financial incentive that assists with the rehabilitation costs for exterior improvements to historic buildings in the District.
“This City welcomes locals and visitors to be a part of Annapolis’ history,” Mayor Cohen said. “People can walk down the same roads as George Washington and Thomas Jefferson did, pass homes, and enter buildings that were bustling businesses hundreds of years ago. This tax credit will help property owners to keep our historic facades intact and protect part of the City’s enduring appeal for future generations.”
The Historic Preservation Tax Credit is limited to 10% of documented qualifying expenses for labor and materials related to a preservation, restoration, and rehabilitation project for which there is a Certificate of Approval issued by the Historic Preservation Commission. This ordinance proposes to maintain the 10% credit, but to increase the tax credit to 25% for the following projects:
- Income-producing properties
- Residential properties with qualified interior improvements required for life/safety or hazard mitigation
- Exterior restoration work when there is replacement of a non-historic feature or material with a historically appropriate feature or material
The changes are tied to the new State of Maryland enabling authority which allows municipalities to increase the credit from 10% to 25%. In an effort to be fiscally reasonable, City staff worked with the ordinance sponsor, Ward One Alderman Joe Budge, to develop a program that will remain within the $150,000 annual program cap.
“The existing program was under utilized,” Ward One Alderman Joe Budge said. “The new legislation will provide incentive for both commercial and residential property owners to improve the historic fabric of our downtown.”
“This enhanced tax credit ensures our National Historic Landmark District is preserved not just because of its historic significance, but because of its importance as an economic asset,” Lisa Craig, Chief of Historic Preservation and Director of the MainStreets Annapolis Partnership said.