Tax Incentives for Baltimore Artist
By lessening the financial burden on property owners, this program seeks to assist the rehabilitation of buildings for artists and enterprises involved in the arts. Currently, there are four Arts and Entertainment (A&E) Districts in Baltimore City: Station North, Highlandtown, Bromo, and Pennsylvania Avenue.
For buildings in these districts that are fully or substantially renovated and utilized by eligible local artists or arts and entertainment businesses, the program provides a 10-year property tax credit. After the completion of qualifying renovations, the property is reassessed, and the credit starts.
With the exception of the Maryland Enterprise Zone Tax Credit, this tax credit cannot be paired with any other city tax incentives. The amount of the credit is apportioned according to the area of the facility that is utilized by eligible artists or arts organizations. As long as the property is still eligible, the tax credit can be passed on to the next owner in the event that the property is sold.
Qualifications for the Property Tax Credit:
The qualifying renovations will be used by the State Department of Assessments and Taxation to establish the eligible assessment. For use by a qualifying artist or an arts-related enterprise, eligible modifications apply to manufacturing, commercial, or industrial buildings located inside State-designated A&E districts.
According to Economic Development Article §4-701 of the Maryland Code, those who reside or work in an A&E district and get compensation from the sale or performance of their artistic creations within that district are considered eligible artists or arts enterprises. For-profit or nonprofit organizations devoted to the performing or visual arts might be considered arts and entertainment enterprises.
After obtaining an assessment notice reflecting the approved modifications, property owners have ninety days to apply for the tax credit with the Department of Finance. Certification of the date of receipt of the assessment notice must be included in the application. This 90-day window cannot be extended and is strictly enforced.