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Tax Credits
The City of Frederick provides a variety of strategic incentives to encourage rehabilitation, capital investment, and job creation.
- Brownfields Property Rehabilitation
- Commercial & Industrial Business
- Downtown Property Rehabilitation
- Enterprise Zone Property RehabilitationÂ
- Golden Mile Property Rehabilitation
- High Performance Buildings
- Historic Preservation Property Rehabilitation
- New Jobs & Enhanced Jobs
- Vacant Commercial Property Rehabilitation
Overview
For voluntary cleanup or corrective action plan of a qualified brownfields property.
Benefit
A 5-year tax credit (City) of 50% of the property tax attributable to the increase in the assessment of the qualified site, including improvements added to the site during the credit period.
Application
Download Application (PDF)
Full Program Details
Overview
For manufacturing business making new investments totaling at least $100,000 and adding at least 3 net new full-time jobs.
Benefits
A 10-year tax credit of 20% to 100% (depending on investment/job creation size) of the incremental tax increase attributable to the new investment as determined by the Maryland State Department of Assessments and Taxation (MSDAT).
Application
Full Program Details
Overview
For the rehabilitation of property located in Downtown Frederick.
Benefit
A 7-year property tax credit (City and County) on the increased assessed value of the property and calculated by the City's Exemption Schedule.
Application
Following the completion of project work, submit application and all back-up documentation by April 30th for the tax credit to be applied on the following Fiscal Year’s bill.
Download Application Form (PDF)
Full Program Details
Overview
For the rehabilitation of property located in Golden Mile Enterprise Zone. The enhanced local benefits of this program as outlined by the State's Enterprise Zone would be offered in place of the City's more limited Golden Mile Property Rehabilitation program.
Benefit
- 10-year tax credit based on increase in real property tax assessments (80% during the first 5 years, then decreasing 10% annually)
- State income tax credits are additionally available for eligible new hires
Application
In order to be eligible for Enterprise Zone property tax credits, the application must be submitted PRIOR to the project completion date and issuance of User/Occupancy Permits. Application for Income Tax Credits may occur within a year of the hiring date.
Download Application Form (PDF) - (for both the Income Tax Credit and Real Property Tax Credit)
Full Program Details
** Note -- those potentially eligible for the Golden Mile Property Tax Credit should consider application for the State Enterprise Zone program.
Overview: any property located within the Golden Mile qualifies, provided that the rehabilitation increases the value of the property.
Benefits: a 7 year property tax credit on the increased assessed value of the property and calculated by the City's Exemption Schedule.
Overview
For new Leadership in Energy and Environmental Design (LEED) certified (or equivalent) buildings.
Benefits
Tax credit granted as percentage of the City’s property tax, determined by the performance rating of the building.
Application
Following the completion of project work, submit application and all back-up documentation by April 30th for the tax credit to be applied on the following Fiscal Year’s bill.
Download Application (PDF)
Full Program Details
Overview
Historic Preservation Commission (HPC) approved rehabilitation work to the exterior of a building located with the Historic District Overlay. Applications are due by April 1st following the calendar year in which the expenditures were incurred.
Benefits
A property tax credit (City and County) for 25% of eligible work, up to a maximum of $7,500.
Application
Applications are due by April 1st following the calendar year in which the expenditures were incurred.
Download Application Form (PDF)
Full Program Details
Contact the Planning Department at 301-600-1499.
Overview
To be eligible, a business must construct, or expand by at least five thousand (5,000) square feet, premises in the City on which it conducts business by buying, building or leasing new premises and create 25 net new full-time jobs over a 24-month period.
Benefits
Six-year tax credit based on the Maryland State Department of Assessments and Taxation (MSDAT) assessed value of the new or expanded facility:
- 52% Credit (Year 1 and 2)
- 39% Credit (Year 3 and 4)
- 26% (Years 5 and 6)
Application
A letter of intent must be completed prior to the start of hiring and construction.
Download Application (PDF)
Full Program Details
Overview
Rehabilitation of a commercial property that has been vacant and marketed for at least 18 of the last 24 months prior to the start of rehabilitation.
Benefit
Seven-year property tax credit (City and County) on the increased assessed value of the property and calculated by the City's Exemption Schedule.
Application
Following the completion of project work, submit application and all back-up documentation by April 30th for the tax credit to be applied on the following Fiscal Year’s bill.
Download Application (PDF)