The Heritage Structure Rehabilitation Tax Credit was replaced in 2010 by the Sustainable Communities Tax Credit. The previous credit provided a 20% tax credit for substantial rehabilitation expenditures on certified heritage structures in Maryland over a 24-month period. The credit could be claimed in the year rehabilitation was completed if approved by the Maryland Historical Trust. Certain limitations and provisions applied depending on when the property was certified.

1. Heritage Structure Rehabilitation Tax Credit
As of June 1, 2010, the Sustainable Communities Tax Credit replaces the Heritage Structure
Rehabilitation Credit.
A credit may be allowed for substantial expenditures incurred in a 24-month period to
rehabilitate a certified heritage structure located in Maryland. The credit is available for
owner-occupied residential property, as well as income-producing property. Credits may not
be authorized after June 30, 2010.
How the credit is calculated:
The credit is 20% of the total expenditures incurred during the 24 month rehabilitation
period. For the rehabilitation of commercial structures, the credit cannot be more than the
maximum amount specified under the initial credit certificate, which is based on estimated
expenditures. If the application was submitted to MHT before June 1, 2002, the credit based
on actual expenditures can be up to $250,000 more than the amount shown on the initial
credit certificate.
The credit is claimed in the year in which the rehabilitation is completed; however, it cannot
be claimed until the Part 3 certification is approved.
For property certified before July 1, 2001, a business could have received a mortgage credit
certificate. In lieu of taking the credit, the certificate may be transferred to the mortgage
holder who may then take a credit against their income tax in an amount equal to the face
value of the certificate.
For certifications received after June 30, 2001, the amount in excess of the state tax liability
can be refunded.
Credits for tax years 2002 and later are limited to $3 million. For non-commercial
properties, the credit is $50,000 per property for applications received by MHT after June
30, 2004.
The rehabilitation of a structure that received approval by the MHT on or before February 1,
2001, is subject to the provisions of the law in effect prior to the 2002 legislative changes.
The MHT will not accept applications for the approval of plans for commercial rehabilitations
if a substantial part of the work has been completed if the applicant has already submitted
three or more applications for a combined total of more than $500,000 in that year.
The total amount of credits approved by MHT for properties located in certain areas of the
state during each fiscal year is subject to certain limitations.
A pro-rated percentage of the credit is subject to recapture if disqualifying work is
performed during a five-year period, beginning with the year in which the certified
rehabilitation was completed.

2. Contact:
Maryland Historical Trust
100 Community Place
Crownsville, MD 21032-2023
Phone: 410-514-7628
http://mht.maryland.gov/callwho.html#taxcredits
http://mht.maryland.gov/taxcredits.html
McMillan Consulting
828A E. Baltimore St.
Baltimore, MD 21202
Phone: 410-775-6226
Web: http://mcmillancos.com
E-mail: info@mcmillancos.com
McMillan Consulting is not affiliated with the state of Maryland. This document is for
informational purposes. Contact us, the appropriate agency for this credit or your tax
professional for further assistance. You can view Maryland's tax credits by visiting
http://macadvises.net/mdtaxsignal.php and clicking on the MD Business Tax
Credits link. We can send you a hard copy of this or any of our info sheets for Maryland
tax credits.