TAX CREDITS AND REBATES

Green Tax Credits

If you had renewable energy systems installed and in service in your home prior to December 31st, 2016 you may be eligible to receive a 30% tax credit.  Systems that qualify include solar energy, wind, micro-turbine, geothermal heat pumps, and residential fuel cells.

For More Information

U.S. Department of Energy
(202) 586-5000
Website

Arts & Entertainment Districts Tax Credits

This program is designed to encourage the renovation of buildings for use by artists or arts and entertainment enterprises by lessening the financial burden on property owners. Baltimore City currently has two Arts and Entertainment (A&E) Districts: Station North (designation effective by the State of Maryland on July 1, 2002) and Highlandtown (designation effective by the State of Maryland on July 1, 2003).

For More Information

Baltimore City Department of Finance
(410) 396-3971
Website

Renter’s Tax Credit

The concept rests on the reasoning that renters indirectly pay property taxes as part of their rent and thus should have some protection as do homeowners. The plan is based upon the relationship between rent and income. If the portion of rent attributable to the assumed property taxes exceeds a fixed amount in relation to income the renter can under specified conditions receive a credit of as much as $1000. The credit is paid as a direct check from the State of Maryland.

For More Information

State Department of Assessments & Taxation Homeowners’ Tax Credit Program
(410) 767-4433
Website

Resident Retention Tax Credit

The Resident Retention Tax Credit is designed to encourage buyers to purchase their second (third, fourth, etc.) home in Baltimore City. The incentive awards a five-year property tax credit in these following amounts: Year 1- $1,000; Year 2- $900; Year 3- $800; Year 4- $700; Year 5- $600. After year 5, the Homestead Tax Credit resumes (based on the original purchase price of the home).

For More Information

City of Baltimore Department of Finance
William Voorhees, Ph.D
Website

Maryland HomeCredit Program

The Maryland HomeCredit Program provides eligible homebuyers with a federal tax credit that may be claimed annually, the value of which is equal to 25% of the value of mortgage interest payments (up to $2,000) paid each year, for the life of the loan (i.e. until payoff, sale, refinance or transfer).

For More Information

Maryland Mortgage Program
(301) 429-7400
Website

Home Improvement Property Tax Credit

Homeowners who have added recent improvements to their home may be eligible to receive a 5-year tax credit on the additional assessed value. The credit is 100% of the home improvement assessed value the first year and decreases by 20% for 5 years.

For More Information

State Department of Assessments and Taxation
(410) 767-2165
Website

Homeowner’s Tax Credit

The State of Maryland has developed a program which allows credits against the homeowner’s property tax bill if the property taxes exceed a fixed percentage of the person’s gross income. In other words, it sets a limit on the amount of property taxes any homeowner must pay based upon his or her income.

For More Information

State Department of Assessments & Taxation Homeowners’ Tax Credit Program
(410) 767-4433
Website

Homestead Property Tax Credit

State law requires each Maryland local government to establish a limit on how much owner occupied residential taxable assessments may increase each year. The program protects homeowners from increases above the level established by local law, or 10%, if no local action is taken. The credit is applied against the taxes due on the portion of the reassessment that exceeds the 4% cap. The credit is applied directly to the property owner’s tax bill.

For More Information

State Department of Assessments & Taxation Homeowners’ Tax Credit Program
(410) 767-4433
Website

Newly Constructed Dwelling Tax Credit

The Newly Constructed Dwelling Tax Credit provides a five-year Baltimore City real property tax credit on newly constructed or substantially rehabilitated dwellings.

For More Information

Baltimore City Bureau of Revenue Collections Call Center
(410) 396-3971
Website

Vacant Dwelling Property Tax Credit

The Vacant Dwelling Property Tax Credit was designed to encourage the renovation and reuse of residential vacant properties. This credit provides 100% relief from city property tax increases in the first taxable year with the credit declining by 20 percentage points each year thereafter.

For More Information

Baltimore City Bureau of Revenue Collections Call Center
(410) 396-3971
Website