§ 10-8. Historic improvements, restorations, and rehabilitations.

(a) Definitions.

(1) In general.

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

(2) CHAP.

"CHAP" means the Commission for Historical and Architectural Preservation or the Commission's designee.

(3) Eligible improvements.

"Eligible improvements" means significant improvements to an historic property that have been approved by CHAP as meeting local preservation standards.

(4) Historic property.

"Historic property" means a property:

(i) individually listed on the National Register of Historic Places;

(ii) individually listed on the City Landmark List;

(iii) located within a National Register Historic or Landmark District and certified by CHAP as contributing to the historic significance of that district;

(iv) located within a City Historical and Architectural Preservation District and certified by CHAP as contributing to the historic significance of that district; or

(v) included within the boundaries of a certified heritage area.

(5) Significant improvements.

"Significant improvements" means improvements, restoration, or rehabilitation for which the total documented construction cost equals or exceeds 25% of a property's full cash value before commencement of the improvements, restoration, or rehabilitation.

(b) Program goal.

The goal of this program is to help preserve and revitalize Baltimore's neighborhoods by encouraging home and business owners to make special efforts to restore or rehabilitate historic buildings.

(c) Credit granted.

In accordance with State Tax-Property Article § 9-204.1, a 10-year tax credit is granted against the City real property tax attributable to eligible improvements of historic properties.

(d) CHAP approval required.

The tax credit granted by this section applies only to eligible improvements that, before the improvements are begun, have been preliminarily approved by CHAP as meeting local historic preservation standards.

(e) Amount of credit – In general.

(1) Calculation adjustments.

The calculations specified in paragraphs (2) and (3) of this subsection are subject to:

(i) the reduction required by paragraph (5) of this subsection; and

(ii) the limitations imposed by subsections (f) and (f-2) of this section.

(2) Credits initially granted before October 1, 2014.

(i) For credits initially granted under this section before October 1, 2014, and for the duration of the credit, the credit is equal to the difference between:

(A) the real property tax on the most recent full cash value of the property before the commencement of eligible improvements; and

(B) the real property tax on the most recent full cash value of the property after completion of the eligible improvements.

(ii) For purposes of this calculation, the full cash value of the property is the full cash value before phase in, as determined by the State Department of Assessments and Taxation through the assessment procedures established under Tax-Property Article, Title 8, of the Maryland Code.

(3) Credits initially granted on or after October 1, 2014.

(i) For credits initially granted under this section on or after October 1, 2014, and for the duration of the credit, the credit is equal to the difference between:

(A) the real property tax on the full cash value of the property before the commencement of eligible improvements; and

(B) the real property tax on the full cash value of the property after completion of the eligible improvements.

(ii) For purposes of this calculation, the full cash value of the property shall be determined by an appraisal of the property before commencement and after completion of eligible improvements by a professional appraiser selected by the City and licensed under Business Occupations and Professions Article, Title 16, Subtitle 3, of the Maryland Code.

(4) Notwithstanding paragraph (3) of this subsection, if a property received preliminary approval under subsection (d) of this section before October 1, 2014, the credit shall be calculated in accordance with paragraph (2) of this subsection.

(5) The credit calculated under this subsection shall be reduced by the amount of the credit, if any, for which the property is eligible under the Maryland Enterprise Zone Tax Credit Program.

(f) Amount of credit – Limitation on projects costing more than $5 million.

For development projects exceeding $5 million in documented construction costs, the tax credit is limited to the following percentages of the amount computed under subsection (e) of this section:

(f-1) Special requirements for projects costing more than $3.5 million.

(1) This subsection applies only to development projects exceeding $3.5 million in documented construction costs,

(2) For a project subject to this subsection to be eligible for any tax credit under this section:

(i) the developer must:

(A) submit all documents requested by the Finance Director; and

(B) submit documentation reviewed by the developer with the State Department of Assessments and Taxation to support a preliminary estimate of value for tax purposes based on construction costs and projected income; and

(ii) either:

(A) the existing building in question must have been at least 75% vacant for at least 3 years;

(B) the project is a high-performance market-rate rental housing project, as these terms are defined in § 10-18 (a)(2) {"Definitions: High-performance"} and (a)(3) {"Definitions: Market-rate rental housing project"} of this subtitle; or

(C) the developer must otherwise demonstrate to the Finance Director that the credit is necessary in order for the project to proceed.

(3) When a project subject to this subsection applies for the credit, the developer must submit a statement of projected economic impact and public benefits for the project. 3 years from the date an application is accepted, the developer must submit statements of actual economic impact and public benefits for the project. Public benefit measures include neighborhood revitalization impact, job creation, tax generation, and minority business development.

(4) If a project subject to this subsection is located in a Maryland Enterprise Zone, the credit under this section may be taken only for those parts of the property that have been rejected as ineligible for the enterprise zone tax credit.

(f-2) Limitation on amount of credit applied.

No part of any credit calculated under this section may be applied in any tax year:

(1) to reduce the property's tax liability for that tax year, after application of any other applicable credit, to less than the tax liability to which the property was subject, after application of any other applicable tax credit, before commencement of the eligible improvements; or

(2) in any case in which the property's tax liability for that tax year, after application of any other applicable credit, is less than the tax liability to which the property was subject, after application of any other applicable tax credit, before commencement of the eligible improvements.

(g) Additional requirements.

A credit under this section:

(1) is subject to eligibility requirements no less stringent than those applicable to credits authorized under Tax-Property Article § 9-204, of the Maryland Code;

(2) is limited to a period of 10 consecutive tax years (or portion of a tax year), beginning with the first billing period that occurs after CHAP and the Finance Director have issued their final approvals;

(3) is fully transferrable to a new owner for the remaining life of the credit; and

(4) terminates if the property is converted so as to no longer meet established historic preservation standards.

(h) Continuing eligibility.

During the credit period, the property owner shall:

(1) maintain the major historic features of the property;

(2) ensure that the property for which the credit was granted is in full compliance with the City Building, Fire, and Related Codes Article; and

(3) submit all statements required by subsection (f-1)(3) of this section.

(i) No tax subsidy duplication allowed.

Except for the Maryland State Enterprise Zone Tax Credit Program, 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.

(j) Application.

(1) A property owner seeking this credit shall:

(i) file an application with CHAP; and

(ii) pay the application fee set by the Board of Estimates.

(2) The application shall contain the information, including identification of major historic features, that CHAP considers necessary for determining the eligibility of the applicant.

(k) Administration.

The Finance Director, after consultation with the Director of Planning, may:

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

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

(3) delegate his or her powers and duties to administer this section to any employee or agency of the City.

(l) Review.

(1) CHAP, in coordination with the Department of Finance, shall establish review procedures for the credit program established by this section.

(2) The Department of Finance shall analyze the data submitted under subsection (f)(3) of this section.

(m) Termination of program.

Applications for a credit under this section may not be accepted after August 28, 2024.

(n) Criminal penalties.

Any person who knowingly makes a false statement on or in connection with an application for a tax credit under this section or in connection with any report or statement supporting a property's continued eligibility for a tax credit granted under this section is guilty of a misdemeanor and, on conviction, is subject to a fine of not more than $1,000 or to imprisonment for not more than 12 months or to both fine and imprisonment for each offense.