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Business Development Incentives

Enterprise Zone Tax Incentives

For qualifying businesses located within the Enterprise Zone that business could be eligible for the following incentives:

 

 

 

 

 

  • Income tax credits on new employees
  • Property tax credits on new investments
  • Access to State venture capital fund
  • Special provisions for industrial bonds
  • One-step permitting process
  • Help with water lines, sewer lines and access roads
  • Help in preparing financial packages
  • Reimbursement of building permit fees and tappage fees for water and sewer
  • Educational and job counseling opportunities as well as vocational training
    Funds are provided through the State of Maryland in cooperation with the City of Cumberland and Allegany County.

    Contact:   (301) 722-4156 or e-mail: discovercumberland@allconet.org
     
  • One Maryland

    The ONE MARYLAND Tax Credit Program provides two special tax credits to businesses that initiate major investment projects in Maryland’s most economically distressed jurisdictions including Allegany County.

  • The ONE MARYLAND Project Tax Credits of up to $5 million are based on qualifying costs and expenses incurred by the business entity in connection with the acquisition, construction, rehabilitation, installation, and equipping of an eligible economic development project. The business entity must incur at least $500,000 in eligible project costs and must create at least 25 new qualified positions.
  • ONE MARYLAND Start-up Tax Credits of up to $500,000 are based on a business’ cost to furnish and equip a new location for ordinary business functions and to move to a qualified distressed county from outside Maryland.  50 qualified new positions are required to qualify for the full $500,000 credit.

    Funds are provided through the State of Maryland in cooperation with the City of Cumberland and Allegany County.

    Contact:   (301) 722-4156 or e-mail: discovercumberland@allconet.org
     

    Federal HUBZone Contracting Program

    The HUBZone Empowerment Contracting program was enacted into law as part of the Small Business Reauthorization Act of 1997. The program encourages economic development in historically underutilized business zones - "HUBZones" - through the establishment of preferences. SBA's HUBZone program is an effort to promote economic development and employment growth in distressed areas by providing access to more Federal contracting opportunities.

  • A small business must meet all of the following criteria to qualify for the HUBZone program:
    • it must be located in a "historically underutilized business zone" or HUBZone.
    • it must be owned and controlled by one or more US Citizens, and
    • at least 35% of its employees must reside in a HUBZone.
  • In addition, a qualifying small business must also locate within a Historically Underutilized Business Zone or (“HUB Zone”).  Within the City of Cumberland, there is currently one qualified census tract (as defined in section 42(d)(5)(C)(i)(I) of the Internal Revenue Code of 1986);

    Federal Certification is required to participate in this program and the Small Business Administration (SBA) serves as the sponsoring agency.

    Contact:   (301) 722-4156 or e-mail: discovercumberland@allconet.org
     

    Maryland Neighborhood Business Works Program

  • The Neighborhood BusinessWorks Program is a critical revitalization tool for Maryland’s communities.  The program provides financial assistance to small businesses and nonprofit organizations locating or expanding in locally designated neighborhood revitalization areas throughout the State.  The financial assistance may come in a number of forms, including low-interest loans or loan guarantees.
    Eligible applicants are Maryland-based small businesses including Microenterprises (as defined by the US Small Business Administration) and non-profit organizations whose activities contribute to a broader revitalization effort, and whose projects are intended to promote investment in commercial districts or town centers, are eligible for the program.
  • Financing generally ranges from $25,000 - $500,000.  Each project is reviewed for financial need, which may be up to 50 percent of total project costs. Refinancing is not considered part of the project cost.
    Eligible projects include retail businesses (including franchises), manufacturing businesses, service-related businesses, and mixed-use projects consisting of a commercial or retail use.
    Eligible uses of funds include marketing, planning and feasibility studies, real estate acquisition, new construction or rehabilitation, lease hold improvements, machinery and equipment, working capital (when part of the total project costs), certain other costs associated with opening or expanding a small business.
  • Funds provided through the State of Maryland’s Department of Housing and Community Development

    Local Contact:   (301) 722-4156 or e-mail: discovercumberland@allconet.org
    State Contact:   Dawn Medley, Director of Business Lending Programs/MD DHCD, (410) 514-7237, Medley@mdhousing.org.

     

    Lenders Loan Pool

  • This program was created to encourage development of the downtown area by financing the start-up costs and renovations of businesses relocating and/or expanding within the Central Business District
  • Loans ranging from $10,000 - $100,000 are provided at 7% interest for a maximum of 60 months and can be used for expenses such as inventory, leasehold improvements, equipment, and receivables.

    Funds are provided by the City of Cumberland in partnership with Local Banks and the State of Maryland

    Contact:   (301) 722-4156 or e-mail: discovercumberland@allconet.org
     

    Micro-Enterprise Grant Program

  • Funded through the Community Development Block Grant Program, this program is available for qualifying businesses locating within the targeted areas of the City.
  • Grants of up to $2,500 are made available to assist micro businesses with start-up or retention costs including job creation, marketing, staff development, and project expansion. 
  • Businesses must not have more than 5 employees (including the owner) and the owner must be low income or the business must primarily serve a qualifying area of the City.

    Funds are provided by the City of Cumberland through the Community Development Block Grant Program on an annual basis.

    Contact:   (301) 722-4156 or discovercumberland@allconet.org

     

    Commercial Façade Program

  • This program is funded through the Community Development Block Grant program and is available to qualifying commercial properties located within targeted areas of the City.
  • All projects are limited to $2,000 total cost from both public and private sources. Grants are available within qualifying areas including Community Betterment Areas to encourage needed façade improvements including painting, window and door repair/replacements, porch repair, brick re-pointing, awnings, signage, landscaping and general streetscape improvements.
  • Qualifying businesses must be low income or the business must primarily serve a qualifying area of the City.

    Funds are provided by the City of Cumberland through the Community Development Block Grant Program on an annual basis.

    Contact: (301) 722-4156 or discovercumberland@allconet.org


     

    Arts & Entertainment District Rehabilitation Tax Credit Program

    • A tax credit will be provided on City real property taxes for properties located within the Arts & Entertainment District which credit shall be the difference between the property tax that, but for the tax credit, would be payable after the completion of eligible improvements, and the property tax that would be payable if the eligible improvements were not made.
    • This tax “freeze” is available for a period of up to 10 years based on the level of improvements made to the property.
    • Qualifying commercial and residential properties are eligible for the tax “freeze”.
    • Properties must be located within the A&E District and a minimum of $5,000 investment must be made.   Application must be made prior to work beginning with the City of Cumberland’s Department of Community Development and a certificate of appropriateness from the Local Historic Preservation Commission must be obtained when applicable.
    • This program developed as part of the City of Cumberland’s designation as a State of Maryland Arts & Entertainment District through the Maryland Department of Business and Economic Development


    Contact:   (301) 722-4156 or e-mail discovercumberland@allconet.org
     

    Arts & Entertainment District Admissions & Amusement Tax Exemption Program

  • Commercial enterprises located within the Arts and Entertainment District are exempt for the collection of the State of Maryland’s Admissions and Amusement Tax
  • Businesses must qualify for the exemption and notification must be provided to the State of Maryland’s Comptroller’s Office in order to be eligible.
  • This program developed as part of the City of Cumberland’s designation as a State of Maryland Arts & Entertainment District through the Maryland Department of Business and Economic Development

    Contact:   (301) 722-4156 or e-mail discovercumberland@allconet.org
     

    Arts & Entertainment District Income Tax Subtraction Modification Program

  • Qualifying resident artists who live or rent residential real property within the Arts & Entertainment District and who sell at least 51% of their wares within the District may be eligible for a personal income tax subtraction modification against their State of Maryland personal income taxes for those wares sold within the District.
  • This program developed as part of the City of Cumberland’s designation as a State of Maryland Arts & Entertainment District through the Maryland Department of Business and Economic Development

    Contact:   (301) 722-4156 or e-mail discovercumberland@allconet.org

    Historic District Tax Credits (Local, State, & Federal)

    Contact Kathy McKenney (301) 759-6431 or e-mail: kmckenney@allconet.org

    City of Cumberland Historic District Tax Incentive Program

  • For qualified renovations that have been approved by the Historic Preservation Commission, a ten-percent credit can be deducted from the property owner's annual city property taxes. A minimum expenditure of $5,000 is required. This credit can be used for up to five years if the amount of credit is greater than the amount of annual taxes due.
  • Additionally, a city property tax assessment freeze is available for a period of up to ten years. The length of the freeze depends upon several factors: whether the property is commercial or residential in use and the amount of the expenditure in relation to the market value of the property. Application Forms are available by calling 301-759-6431 or visiting the City of Cumberland’ s website at www.ci.cumberland.md.us. Follow the links to “Departments”, then to “Community Development”, then to “Historic Preservation.”

    Allegany County Historic District Tax Incentive Program

  • The Allegany County Commissioners have provided a tax assessment freeze equal to that received through the City of Cumberland's program.  Applicants must have work approved by the Cumberland Historic Preservation Commission in order to be eligible. Approved City of Cumberland Historic Tax Incentive Applications will be forwarded to the Allegany County Office of Finance for processing. There is not a separate application required.

    Heritage Preservation Tax Credit

  • Administered by the Maryland Historical Trust, this program provides Maryland income tax credits equal to 20% of the qualified capital costs expended in the rehabilitation of a "certified heritage structure."  As of July 1, 2001, non-profit organizations and individuals have the option to select a cash refund, instead of income tax credits. A yearly cap is in effect for commercial buildings and a project cap is in effect for residential buildings. The Maryland Historical Trust, prior to the commencement of work, must approve all applications.  More information about this program can be obtained by contacting the Maryland Historical Trust's Office of Preservation Services at 410-514-7627 or 410-514-7628. Forms and instructions may be obtained by visiting the website at www.marylandhistoricaltrust.net and clicking “Forms and Documents”.

    Maryland Historical Trust Historic Preservation Loan Program

  • Preservation loans are provided to non-profit organizations, local jurisdictions, business entities, and individuals for the purpose of acquiring or rehabilitating all categories of real property listed in or eligible for listing in the Maryland Register of Historic Properties.  Loans to business entities and individuals bear interest at a fixed annual rate 1/8 percent higher than the most recently sold State general obligation bonds (most recently this has been around 5%).  Applicant must submit proof that they are unable to secure private financing for the requested loan amount. More information about this program can be obtained by contacting the Maryland Historical Trust's Office of Preservation Services at 410-514-7627 or 410-514-7628. Application Forms may be obtained by visiting the website at www.marylandhistoricaltrust.net and clicking “Forms and Documents”.

    Maryland Historical Trust Capital Grant Program

  • Applications are available year round, but this is a highly competitive program with awards being made only one time each year. More information about this program can be obtained by contacting the Maryland Historical Trust's Office of Preservation Services at 410-514-7627 or 410-514-7628. Application forms and instructions may be obtained by visiting the website at www.marylandhistoricaltrust.net and clicking “Forms and Documents”.

    Maryland Historical Trust Emergency Assistance Program

  • A reserve of twenty percent of the total Maryland Historical Trust Grant Fund is withheld each year to help meet needs that may arise throughout the year. Those in need of emergency funding must complete the MHT Capital Grant application, as though applying at the beginning of the regular grant cycle. More information about this program can be obtained by contacting the Maryland Historical Trust's Office of Preservation Services at 410-514-7627 or 410-514-7628.
    Applications and forms may be obtained by visiting the website at www.marylandhistoricaltrust.net and clicking “Forms and Documents”.

    Federal Tax Incentive Program

  • The program enables the owners or long-term leaseholders of income-producing certified historic structures (listed in the National Register of Historic Places, or a contributing element within the boundaries of an historic district), to receive a federal tax credit. The credit amounts to 20 percent of the cost of a certified rehabilitation (a rehabilitation that meets the Secretary of the Interior's "Standards for Rehabilitation"). Applications for this program contain three parts and are available through the Maryland Historical Trust. More information about this program can be obtained by contacting the Maryland Historical Trust's Office of Preservation Services at 410-514-7627 or 410-514-7628. More information can be found on the National Park Service’s Heritage Preservations Services website, located at http.//www2.cr.nps.gov/tps/tax/

    Virginia Avenue Area Targeted Revitalization District (VAATR) Program
  • Established by the Mayor and City Council to stimulate revitalization and growth along the Virginia Avenue corridor. This program provides flexibility to the owner to make improvements to his property and be eligible to receive property tax credits outside the structure of the Historic District guidelines.  Allegany County tax credits will also be available for this program beginning September 24, 2007.
         -   Both commercial and residential properties eligible
         -   $5,000 minimum investment required
         -   Property must be maintained for up to 10 years
         -   Eligibility based on property improvements, restoration and
             rehabilitation, or new construction costs.
         -   Property tax credit to be determined by cost of eligible improvement as compared to value of property if eligible improvements had not been made.
         -   Allowable for up to 10 years, as determined by improvement costs

     

    ****Please note that all programs are funded through various resources and each has its own set of guidelines and eligibility requirements.  Most programs are funded on an annual basis and are subject to change. Please contact the phone numbers listed above to ensure that stated program information is still accurate prior to submitting application.

     

     

     

     

     

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