Tax Credit Program
Tax Credit Programs
There are several tax credit programs for the rehabilitation of historic properties in Montgomery County. To be eligible for the Montgomery County Historic Preservation Tax Credit, the property must be listed in the Montgomery County Master Plan for Historic Preservation. These properties may also be eligible for state and federal tax credits along with properties listed on the National Register of Historic Places.
Historic Preservation Tax Credit workshop recordings
Montgomery County Historic Preservation Tax Credit
To encourage the restoration and preservation of historic properties, the Montgomery County Council passed legislation (Chapter 52, Article VI) in 1984 creating a historic preservation tax credit program for county-designated historic properties. Owners of property listed in the Montgomery County Master Plan for Historic Preservation are eligible to receive a credit for documented expenses for exterior maintenance, restoration or preservation work. The tax credit is applied towards County real property taxes.
Forms & Resources
- Tax Credit Application (please use Adobe Acrobat to complete and electronically sign the form)
- Examples of Eligible & Ineligible Work
- County Preservation Tax Credit Case Studies
- Maryland State and Federal Historic Preservation Tax Credits
- The Winter 2007 Issue [PDF] of our newsletter, The Preservationist, included a front-page article on historic building maintenance that may be eligible for the historic tax credit.
If you are having any trouble with any of these files, please contact our office.
On July 16, 2013, the Montgomery County Council passed Bill 14-13, which amended the tax law (Chapter 52, Article VI) related to the percentage of improvement costs on a historic property from 10% to 25% for eligible work completed after January 1, 2013. Eligible work includes repairs, restoration, or preservation of exterior features of designated structures. Examples of eligible projects include, but are not limited to,
- Repairing roofs or windows or replacing them in-kind
- Repairing architectural trim or ornament
- Uncovering and repairing original siding
- Repointing brick or stone foundations or chimneys
- Restoring a documented feature such as a dormer or porch that was previously altered or removed
- Repairing and maintaining outbuildings such as barns and garages
NOTE: New construction and interior work are not eligible.
The Historic Preservation Commission (HPC) reviews tax credit applications, certifies that project work is eligible for tax credits, and forwards recommendations to the County Department of Finance for approval. The approved tax credit is applied to a property owner’s tax bill. Any unused portion of this tax credit may be carried forward for as many as five years. If the property were subsequently removed from the Master Plan for Historic Preservation, any unused portion of the tax credit would immediately lapse. A property not listed on the Master Plan for Historic Preservation at the time the work is undertaken is not eligible for the preservation tax credit.
We strongly encourage you to apply for a county preservation tax credit if your property is listed in the Master Plan for Historic Preservation and you are doing exterior preservation work on your property.
***This office does not provide financial services advice or planning. There may be tax implications from the receipt of the historic preservation tax credit. Please check with your tax adviser regarding the implications of this credit on your tax liability.***
Maryland Tax Credits
In addition to the Montgomery County Historic Preservation Tax Credit, the state of Maryland offers a tax credit to owners of certain historic properties. This tax credit program, administered by the Maryland Historical Trust (MHT), provides a 20% state income tax credit for qualified interior and exterior rehabilitation work. In order to be eligible for the Maryland tax credit, properties must be listed in the National Register of Historic Places or be listed in the Master Plan and be determined by MHT to be eligible for the National Register.
Federal Tax Credits
The federal government offers tax credits for the rehabilitation of certain historic properties. To qualify for a Federal Historic Preservation Tax Incentive, buildings must be income-producing properties listed in the National Register of Historic Places. Information about federal tax credits is available from the National Park Service and MHT.
Note: Please contact MHT for additional information prior to undertaking your project.