§ 10-13. Telecommunications renovations.

(a) Definitions.

(1) In general.

In this section, the following terms have the meanings indicated.

(2) Eligible area.

"Eligible area" means any area that is eligible for designation as an eligible neighborhood under Article 83B, §§ 4-201 through 4-208 of the Maryland Code.

(3) Qualifying renovations.

"Qualifying renovations" means infrastructure renovations to accommodate advanced computer and telecommunications systems, including the installation of fiber-optic cable, emergency electrical capacity, emergency back-up power, fiber-optic risers, internal/external network cabling, information outlets, and other specialized equipment.

(4) State-of-the-art communications and utility standards.

"State-of-the-art communications and utility standards" means the communication and utility standards published by the Electrical Industry Association and the Telecommunications Industry Association as EIA/TIA Standard 568, generally referred to as "Class 5" Installations.

(b) Tax credit authorized.

A real property tax credit is granted against the City property tax imposed on a commercial (including commercial-residential) building:

(1) that is in an eligible area; and

(2) to which qualifying renovations have been made to meet state-of-the-art communications and utility standards.

The tax credit granted under this section for any 1 taxable year shall equal 7.5% of the cost of qualifying renovations, subject to a maximum cumulative credit of $750,000 for the 10-year credit period. The credit shall be applied only to that part of the taxes due that exceed the tax calculated on the fully phased-in pre-improvement value of the property.

(d) Commencement and duration of credit.

(1) A tax credit may be granted under this section only for 10 years or until the maximum credit amount of $750,000 is reached, whichever is first.

(2) The 10-year credit period begins after:

(i) the qualifying renovations have been completed;

(ii) the Building Official gives final approval to the project; and

(iii) the State Department of Assessments and Taxation completes an assessment review.

(3) The credit will be first applied to the tax bill generated after the State Department of Assessments and Taxation has issued a revised assessment notice on a part- or full-year basis.

(e) No tax subsidy duplication allowed.

The credit authorized by this section does not apply to any property for which any other tax subsidy from the City, whether in the form of a tax credit, payment in lieu of taxes, or otherwise, is being received or has been applied for.

(f) Application.

(1) The person responsible for paying property taxes should file an initial application for the credit concurrently with the application for building permits for the renovation work. In no event, however, may any application for a credit be accepted after a building permit is issued. The application shall estimate the costs of the proposed qualifying renovations, separately from all other costs.

(2) Before renovations begin, the applicant must file renovation plans with the City Building Official and obtain preliminary approval that the plans meet state-of-the-art communication and utility standards.

(3) During construction and on completion of the renovations, the applicant must obtain certification from the Building Official that the renovations conform to the approved plans.

(4) On completion of the renovations, the applicant must provide documented evidence of the costs of the qualifying renovations.

(g) Continuing eligibility requirements.

The use of the credit in any year is conditioned on the taxpayer's:

(1) maintaining the property in compliance with all City housing, building, health, fire, and other applicable City Code requirements; and

(2) remaining current on all payments due to the City.

(h) Administration.

(1) The Director of Finance may:

(i) subject to Title 4 {"Administrative Procedure Act – Regulations"} of the City General Provisions Article, adopt rules and regulations to carry out this section;

(ii) settle disputed claims that may arise in connection with the credit authorized by this section; and

(iii) delegate powers, duties, or functions in connection with the administration of this credit to the City Collector or any other City employee.

(2) The Director of Finance shall report the estimated cost of all tax credits granted under this section in any fiscal year as a tax expenditure for that fiscal year and shall include that cost in the Ordinance of Estimates for that fiscal year.