Posts Tagged Sustainable Communities Tax Credit
Don’t throw the baby out with the bathwater
Posted by Preservation Maryland in Advocacy, Preservation Stories on July 24, 2012
Bolton Hill, Baltimore
To its credit, the Baltimore Sun has published a series of investigate articles exposing gross errors by city and state administrators of various tax credit programs. The most recent was on Baltimore City’s Historic Tax Credit program.
Preservation Maryland helped fund a feasibility study that led to passage of the tax credit program by the Mayor and City Council of Baltimore in 1996. The primary goal of the program was to create an incentive for the rehabilitation of Baltimore’s stock of historic residential and commercial buildings and tool for revitalizing its neighborhoods. In addition, it was intended to help stem Baltimore’s population loss and alleviate the city’s burdensome property tax rate, the highest in the state.
Here’s how the program works. To be eligible, a building must be individually landmarked or be a contributing structure within a Baltimore City or National Register historic district. The rehabilitation must be substantial and all work must conform to standards that preserve the historic and architectural integrity of the building. In return a 10 year credit is granted against the increased property tax assessment directly resulting from qualified rehabilitation.
American Brewery, Baltimore
To date, over 1200 historic buildings have been rehabilitated in Baltimore City using the tax credit, leveraging over $500 million of private investment. The benefits of the program are clear: renovated and reused buildings, revitalized communities, reuse of existing infrastructure, new jobs and businesses, and a substantial net increase in sales and income tax revenues for the City and the State.
Regrettably, there have been serious lapses by city and state tax assessors that have resulted in unearned credits or credits continuing beyond their 10 year period. Obviously, these problems need to be addressed. In addition, it was found nearly 30% of individuals that used the credit would have done their projects without the incentive. As a result, some have questioned whether or not continuation of the tax credit program is justified.
But I would argue that the 30% still deserve the credit and that it is well worth the investment for the additional 70% of projects that would not have occurred but for the credit. So fix the administrative problems, but don’t throw the baby out with the bathwater by eliminating one of Baltimore’s most effective economic development and community revitalization programs.
Tyler Gearhart
The Tax Credit and Next Week’s Special Session
Posted by Preservation Maryland in Advocacy, Advocacy Alert on May 11, 2012
A special session of the General Assembly will begin on Monday. This Wednesday Governor Martin O’Malley, joined by Senate President Mike Miller and House Speaker Michael Busch, laid out the outline of the proposed budget plan. This special session is to finish the work left from the regular General Assembly session. As you likely know, the session ended in April without passage of a budget that would have prevented the so-called “doomsday budget,” resulting in hundreds of millions of dollars in cuts from a wide spectrum of programs. Among these cuts would have been the Sustainable Communities Tax Credit for commercial projects.
We are happy to say that funding for the Sustainable Communities Tax Credit was included in the plan laid out on Wednesday. The Tax Credit is considered Maryland’s most effective historic preservation and community revitalization program, resulting in the rehabilitation of over 4,000 historic residential and commercial buildings while leveraging $1.6 billion of private investment. Losing this funding would be devastating to preservation efforts in Maryland.
So what can you do to help make sure this money stays in place during the special session? Let Governor O’Malley, President Mike Miller, and Speaker Michael Busch know that you appreciate their support of the Tax Credit and let your representatives know how important the Tax Credit is to Maryland’s historic resources. Please take a few moments to send them a note or call their offices. There are lots of issues on the table in the special session and we need to make sure our voices in support historic preservation are heard.
If you need material about the Tax Creidt’s benefits, you can find out more on our Advocacy Resources page and Economic Benefits page.
Jessica Feldt
Help Support Preservation Funding in Governor O’Malley’s Budget
Posted by Preservation Maryland in Advocacy Alert on November 10, 2011
The 430th Session of the Maryland General Assembly is just a couple months away. Here at Preservation Maryland we have been working with a coalition of statewide heritage interests and organizations to develop a preservation agenda to guide advocacy efforts. Earlier this week we sent out an Advocacy Alert detailing the budget goals the coalition has identified for the upcoming Session. Programs were are advocating for are the Sustainable Communities Tax Credit, the Maryland Historical Trust’s Non-Capital, Capital, and Museum Assistance grant programs, the African American Heritage Preservation Grant Program, Main Street Maryland, Maryland Heritage Areas, and the Maryland Humanities Council.
The first step is getting funding for these programs into the Governor’s budget. Your help is critical to make sure these programs are included. You can check out the Advocacy Alert for full details on what you can do and see the funding levels we are requesting for each program as well. Below are the “cliff notes” version of how you can help.
1) Contact the Governor’s Office to register your support. If you have received a grant or other assistance from the programs above, be sure to emphasize how important those programs are to the success of your project or organization. You do not need to weigh in on every item, but be sure to let the Governor know what program(s) are most important to you. Click here to access the form to e-mail the Governor
2) Copy Secretary of Budget and Management, T. Eloise Foster on any communication to the Governor or write her directly.
3) Familiarize yourself with the issues through the links to the websites for the programs above. Use these to help craft your message to the Governor and Legislators.
4) Use the end of the year to communicate what you do and why it’s important to your legislators. If your organization is releasing an Annual Report or mailing a Holiday card, be sure to include your elected officials on the mailing list.
5) Take time to familiarize yourself with the Legislative and Budget process by visiting the Maryland General Assembly Homepage. If the language of the legislative process makes your head spin, you can use this guide to “Legislative Lingo” to help get your bearings.
6) Make sure you know your representatives on a state and federal level by clicking here.
We hope you will help us in this effort. In these tough times the budget is tight and every voice raised in support of these programs helps immensely. If you do help, please let us know or send a copy of your communication. Thank you for your support!
Jessica Feldt
Maryland Historical Trust Accepting Sustainable Communities Tax Credit Applications
Posted by Preservation Maryland in Funding Programs on July 14, 2011
The Maryland Historical Trust is currently accepting applications for the FY2012 Sustainable Communities Tax Credits for commercial projects. The deadline for applications is August 31, 2011. Click here to learn more about the program and access application forms.
The Maryland Historical Trust says: “The Sustainable Communities Tax credit program provides State income tax credits for the rehabilitation of existing buildings, both historic and non-historic, within designated areas throughout Maryland. Funds for the Sustainable Communities Tax Credit program are appropriated annually by the General Assembly. State law requires the Maryland Historical Trust to award the funds based on a competitive review and ranking process. To learn more about the tax credit program, the review process for commercial projects, and access the application forms click here. Homeowners may also apply for Sustainable Communities Tax Credits equal to 20% of qualified rehabilitation expenses for improvements to their historic homes. Click here to learn about the Sustainable Communities Tax Credit program for homeowners.”
Remember that each legislative session your voice is needed to protect funding for programs like the Sustainable Communities Tax Credit. Join our email list and get alerts on how you can help protect these valuable programs.
Jessica Feldt
