The City of Cumberland, in partnership with the Maryland Historical Trust (MHT). Preservation Maryland and the Cumberland Economic Development Corporation, will present a free Historic Preservation Tax Incentives Workshop on Thursday, February 9th, 2023 from 11:30 – 2 in the City Hall Council Chambers located at 57 N. Liberty Street, Cumberland, MD. 21502. Lunch will be provided. For those unable to attend in person a virtual option will be available.
This event is for investors, historic property owners, real estate agents, banking specialists, accountants, government officials and local community leaders who want to learn more about utilizing vacant and/or historic buildings in Cumberland. This workshop will demonstrate the intrinsic value of historic tax credits as economic development tools such as providing incentives to invest in older structures, stabilizing neighborhoods, and creating local jobs for skilled workers.
To encourage private sector investment in the rehabilitation and re-use of historic buildings, and to promote investment in local economies, Maryland state law grants the City of Cumberland the authority to provide local historic preservation tax credits. In addition to these local tax credits, The City of Cumberland encourages the owners of qualified historic buildings, to also apply for state and federal Historic Preservation Tax Credits. These tax credits can be used alone, or in conjunction with each other, to help to offset expenses.
- The City of Cumberland tax credit is a percentage of the qualified expenses spent on rehabilitation or construction work. For rehabilitation of a local historic residential or income-producing property, the credit is 10% of qualified expenses. For a qualified new construction in a designated Historic District, or a compatible addition, the credit is 5%. Tax credits for each property shall apply for a period that does not exceed 10 years.
- The Maryland Historic Rehabilitation Tax Credit, administered by MHT, is a 20% tax credit available for historic property owners who substantially rehabilitate properties that are listed in or eligible for the National Register of Historic Places and are 60 years old or older.
- The Federal Historic Preservation Tax Incentives program is a 20% income tax credit for the rehabilitation of historic, income-producing buildings. Properties must be income-producing and listed in the National Register of Historic Places. The National Park Service is the federal agency that administers the program, administered by MHT, is the point of contact for anyone who applies for tax credits for properties in Maryland
As of Fall 2022, more than $465 million has been invested in Maryland rehabilitation projects since 1996. The investments have helped make improvements to 5,331 homeowner and 825 commercial historic structures, preserving buildings that contribute to the distinct character of Maryland’s towns, cities, and rural areas. According to a study by the Abell Foundation, the state program has helped to create an estimated 33,700 jobs through construction, and new or expanded occupation of these significant historic resources.
Qualified property owners may simultaneously apply for local, state and federal tax incentive programs. More information on this will be available at the upcoming workshop. To register visit https://www.cumberlandmd.gov/FormCenter/Boards-Commissions-5/Historic-Preservation-Tax-Incentive-Work-59. For additional questions contact Ruth Davis-Rogers at email@example.com or call (301)759-6431.
In the event of heavy snow resulting in closures, a snow date of February 16th is scheduled.