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County Tax Credits & Exemptions

Montgomery County Tax Credits

Businesses have access to a variety of tax credits designed to encourage investment in targeted geographic areas or industries and to support business growth in the County. The Montgomery County Department of Finance administers tax credit programs and is available to answer questions regarding eligibility and process. Businesses are encouraged to read the County Code related to specific tax credits to ensure they are eligible. 

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Arts & Entertainment District Tax Credit: Montgomery County’s three state-designated Arts & Entertainment Districts, located in Bethesda, Silver Spring and Wheaton, lessen the financial burdens for local artists and the property owners who support them.
  • Authority
    Montgomery County Code, Chapter 52, Article X, Section 52-99

Brownfields Property Tax Credit: County real property tax credit on the incremental increase in property value of a Qualified Brownfield Site after completion of a voluntary cleanup or corrective action plan.

  • Authority
    Montgomery County Code, Chapter 52, Article X, Section 52-91
Conservation Land Tax Credit: The owner of conservation land may receive a tax credit equaling 100% of any county real property tax imposed on the conservation land, not including any improvements.
  • Authority
    Montgomery County Code, Chapter 52, Article X, Section 52-89
Day Care Provider Tax Credit: A taxpayer may receive a tax credit against the County real property tax for an improvement on real property if the improvement is used exclusively for day care services.
  • Authority
    Montgomery County Code, Chapter 52, Article X, Section 52-94
Design for Life Tax Credit: The program promotes DFL projects and provides tax credits to help offset the cost of making accessible improvements to homes. Credits against School Impact Tax are available to help offset developer costs associated with providing accessible housing.
  • Authority
    Montgomery County Code, Chapter 52, Article X, Section 52-106 and 52-107
Energy and Environmental Design (Green Building) Tax Credit: County real property tax credit on the total property value of a building or reconstruction project that achieves a LEED certification.
  • Authority
    Montgomery County Code, Chapter 52, Article X, Section 52-106 and 52-107
Enterprise Zone Tax Credit: The Enterprise Zone Tax Credit is available to businesses that locate in Long Branch, Takoma Park, Wheaton and Gaithersburg. It is designed to spur economic growth, both jobs and construction, in these Enterprise Zones. It is administered through the County’s Silver Spring Regional Center.
  • Authority
    Maryland Code: TAX-PROPERTY: TITLE 9. PROPERTY TAX CREDITS AND PROPERTY TAX RELIEF: SUBTITLE 1. STATEWIDE MANDATORY: § 9-103.
Fire Sprinkler Systems: A taxpayer may receive a one-time real property tax credit against the General County tax for installing an approved complete automatic sprinkler system that is used for fire protection (includes multi-family buildings).
  • Authority
    Montgomery County Code, Chapter 52, Article X, Section 52-98
Fuel Energy Tax Exemption for Onsite Clean Energy  – Electricity generated through onsite solar installation is exempt from the County’s Fuel Energy Tax, which applies to fossil-fuel generated electricity and other building fuels. (Please refer to information from electric utility companies on receiving bill credits for onsite electric generation). 
  • Authority
    Montgomery County Code, Chapter 52, Article I, Section 52-14
Historic Preservation Tax Credit: This tax credit may be granted against the County real property taxes, based upon the amount expended by a taxpayer for restoration or preservation of an historic property.
  • Authority
    Montgomery County Code, Chapter 52, Article X, Section 52-88
Home Computer Telecommuting Incentive: An employer may receive a tax credit against the County personal property tax for the purchase
of a new home computer or new laptop computer to establish a new off-site employee
workstation.
  • Authority
    Montgomery County Code, Chapter 52, Article X, Section 52-10
New Jobs Tax Credit: Combined state and county tax credits to businesses that hire 25 or more permanent, full-time employees and occupy 5,000 square foot of new and previously unoccupied space.‚Äč State Tax Credit and Enhanced New Jobs Tax Credit may also be available.
  • Authority
    Montgomery County Code, Chapter 52, Article X, Section 52-90
Nonprofit Swim Clubs Property Tax Credit: A nonprofit swim club is eligible for a real property tax credit against the general County tax and special service area taxes, provided it uses its facilities exclusively to provide a recreational outlet for a local community. 
  • Authority
    Montgomery County Code, Chapter 52, Article X, Section 52-102
Payment in Lieu of Taxes (PILOT) Exemption: Negotiated agreements with rental property owners to lower the cost of County real property and special area taxes.
  • Authority
    Montgomery County Code, Chapter 52, Article I, Section 52-24
Publicly Sponsored Business Incubator Tax Credit: Applied against all County property tax and special area tax imposed on properties that are used as business incubators if the State, the County or an agency or instrumentality of the State or County owns, controls, or leases the space that is used as a business incubator or provides at least 50% of the total funding received. 
  • Authority
    Montgomery County Code, Chapter 52, Article X, Section 52-105
Rent Reduction Tax Credit (for landlords): The County grants a tax credit to landlords for providing reduced rent to certain elderly (65 or over) or tenants with disabilities who meet certain income- and asset-based eligibility requirements.
  • Authority
    Montgomery County Code, Chapter 52, Article X, Section 52-109
Urban Agricultural Property Tax Credit: provides a tax credit for urban agricultural properties.
  • Authority
    Montgomery County Code, Chapter 52, Article I, 52-11

Business-Related Property Tax Exemptions

There are numerous types of Property Tax Exemptions available through the State of Maryland. Below is a list of exemptions that apply to businesses.
  • Authority
    Maryland Code: TAX-PROPERTY: TITLE 7. PROPERTY TAX EXEMPTIONS

 Tax Exemption List

Subtitle 2. General Property Tax Exemptions.

  • 7-201.Cemeteries and mausoleum companies
  • 7-202.Charitable or educational purposes
  • 7-206.Continuing care facility for aged
  • 7-219.Personal property - Agricultural products
  • 7-220. Personal property - Aircraft
  • 7-221. Personal property – Financial Institution property
  • 7-221.1. Personal property - Property used in processing deposits or loans
  • 7-222. Personal property - Business stock property (the stock in business of a person engaged in a manufacturing or commercial business is not subject to property tax.)
  • 7-223. Personal property - Farm implement property
  • 7-224. Personal property - Livestock property
  • 7-225. Personal property - Manufacturing property
  • 7-226. Personal property - Raw materials and products property
  • 7-227. Personal property - Property located in a residence
  • 7-228. Personal property - Savings and loan property
  • 7-229. Personal property - Tools of mechanics or artisans
  • 7-230. Personal property - Vehicles
  • 7-231. Personal property - Vessels
  • 7-236. Refueling equipment or machinery
  • 7-237.  Machinery or equipment used to generate electricity, steam for sale, hot or chilled water for sale
  • 7-238. Computer software and related documentation
  • 7-239. Certified coal pollution control facility; coal waste disposal power project
  • 7-243. Heavy Equipment property
  • 7-244. Video lottery terminals and associated equipment and table games.

Subtitle 3. State Property Tax Exemption

  • 7-301. Personal property - State property tax exemption
  • 7-304. Land trusts

Subtitle 4. County Exemptions - Mandatory

  • 7-401. Rolling stock property

 

 

 

 

 

 

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