GO Committee #4
July 8, 2013
July 3, 2013
Government Operations and Fiscal Policy Committee
Expedited Bill 14-13, Historic Preservation
Under Chapter 24A of the Montgomery County Code, the Council designates individual sites or
districts as historic by including the area in the Master Plan for Historic Preservation. Although
the public gets the benefit of retaining its history, the historic property owner has additional
burdens compared to other property owners. Once designated, the owners of historic property
must seek a historic area work permit before making changes to the exterior of their property.
The review is intended to ensure that the historic integrity of the site is maintained.
The cost for improvements to historic property is higher than it is for non-historic property. The
material and labor necessary to adhere to historic preservation standards make improvements
more expensive. The additional historic area preservation permit processing can also add costs
in terms of time or dollars.
In recognition of the additional burden on historic property owners, the State and County have
allowed tax credits for qualified historic preservation improvements. Currently, the County's
historic preservation tax credit is the maximum allowed by state law (10%). As of July 1, 2013,
State law (Chapter 189 of the 2013 Laws of Maryland) allows a 25% tax credit.
Bill 14-13, Historic Preservation - Tax Credit, sponsored by Councilmembers Rice, Floreen,
EIrich, and Ervin was introduced on June 11,2013. The sponsors of the Bill wish to maximize
the tax credit for qualified historic preservation improvements. Bill 14·13 would amend the law
related to the percentage of improvement costs on a historic property that is eligible for a
property tax credit. The sponsors have submitted Bill 14-13 as an expedited Bill to allow owners
of historic properties to get the benefit of the increased tax credit as soon as possible.