The City of Frederick encompasses four State and federal incentive zones.
Qualifying Arts and Entertainment enterprises located in the Arts and Entertainment (A&E) District.
- Property tax credit (City and County) based on the increase in assessed valuation on a portion of commercial property renovated/constructed for a certified arts use
- State income tax subtraction modification for qualifying artists for income derived from their in-district sales
- Exemption from the Admissions and Amusement Tax
Learn more about Arts and Entertainment Districts.
New and existing businesses located in designated Golden Mile area and with qualifying property improvements and/or job creation.
- 10-year tax credit (City and County) based on increase in real property tax assessments (80% during the first 5 years, then decreasing 10% annually)
- A one-time $1,000 state income tax credit for each qualified employee filling a new position
- A three-year state income tax credit for each qualified new economically disadvantaged employee:
- $3,000 in Year One
- $2,000 in Year Two
- $1,000 in Year Three
Learn more about the Enterprise Zone Tax Credit.
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.
- City of Frederick Enterprise Zone Application Form - (for both the Income Tax Credit and Real Property Tax Credit)
For small, American-owned business with its principal office located in a Historically Underutilized (HUB) Zone in which at least 35% of its employees live in a HUB Zone.
- Preferential consideration for government contracts
- Ability to compete for set-aside contracts, and a 10% price evaluation preference in full and open competitions
Learn more about the HUBZone Program.
A Qualified Opportunity Fund is an investment vehicle that is set up as either a partnership or corporation for investing in eligible property that is located in an Opportunity Zone and that utilizes the investor’s gains from a prior investment for funding the Opportunity Fund.
Temporary deferral, step-up basis, or permanent exclusions from taxable income of capital gains from sale or exchange of an investment in an Opportunity Fund, depending on time in which the investment in the Opportunity Fund is held.
Learn more about Opportunity Zones in Frederick.