Redevelopment Incentives

Keeping the vitality of our towns and the viability our farms is critical to maintaining our history and our quality of life. OED supports and applauds our municipalities' economic development efforts. Redevelopment strategies are essential in economic development and a top priority. They build on our strengths and reduce our infrastructure costs. Building on green spaces, while leaving our towns and farms to deteriorate or vanish, is not smart growth and does not preserve what we treasure in Frederick County. Frederick County can be proud of the following pro-active redevelopment strategies that will help our community avoid the decline and decay that many previously vibrant communities are experiencing:

Main Street Designation has helped revitalization projects in the City of Frederick as well as in the towns of Mount Airy, Brunswick and Thurmont. Middletown received this special designation in 2008. Whether communities are "designated" main street or not, main street programming has garnered the support of local merchants and energized revitalization in our towns throughout the County.

Brownfields State Assistance and Incentives have assisted the City of Frederick in Phase I and II assessments of Carroll Creek properties. Brownfields funding can be used for abatement if needed. Businesses can receive a City and County 50% tax credit in increases in tax resulting from the environmental cleanup of real property. After much work with MD DBED and MDE, Frederick County and the City of Frederick both passed this legislation in the Spring of 2002.

Historic District Tax Credit was enacted in 1975 and revised in 1990. It provides a five-year decreasing credit on improvements made to existing structures within the historic district. It has helped redevelopment of residential and commercial properties downtown.

Historic District State Income Tax Credit provides a 20% credit against Maryland income taxes if investment in property exceeds cost of property. This program requires legislative funding and applications are competitively judged.

Golden Mile Tax Credit, which was enacted in Frederick County and City in 2003, provides decreasing tax abatement on building improvements for 7 years. It is a fine an example of an economic development incentive that quickly addressed a potential blight and never reduced tax revenue. Within one year of enacting the tax credit, the 3 major vacant facilities on Route 40 were sold or leased and are now renovated and providing products to our citizens.

Arts and Entertainment Tax Credit is another State/County and City initiative that provides that the City of Frederick and Frederick County a 7-year decreasing tax abatement on improvements to existing structures. State research has indicated this is an inexpensive way to enhance Tourism and the quality of life through the arts. Again, tax revenues are not reduced with this redevelopment strategy passed by BOCC in October 2004.

Agricultural Perservation Land Property Tax Credit. This program encourages the preservation of agricultural land, ensuring that agriculture will remain an important part of the County's economic structure for the future. A tax credit is available for land that is in agricultural use or in an agricultural preservation district.

Agricultural Building Tax Credit. Improvements to farm buildings bring more beauty to the farms that we all appreciate in our County. This tax credit is an incentive to keep non-residential buildings on agricultural land in good repair and appearance. This program became effective in 2003, through the support and advocacy of the agriculture community and the Agriculture Business Council.

The Rehabilitated Vacant Commercial Structures Property Tax Credit creates an incentive for vacant structure rehabilitation and capital investment in existing infrastructure for eligible properties. Criteria for the program includes: properties must have been vacant for at least 18 of the last 24 months; properties must be used for non-residential purposes located in an area permitting commercial or industrial use; and the structure must have been constructed prior to the year 2000.