Maryland Bill Would Increase Caps for State HTC Set-Asides
Legislation in the Maryland Senate would increase annual caps for the state historic tax credit (HTC) set-asides and also increase bonus credits for rehabilitations done in opportunity zones (OZs). Under S.B. 952, the credit for commercial rehabilitation of high-performance buildings, affordable housing or a Level 1 OZ project would increase from 5% to 10% and properties in a Level 2 OZ would see an increase from 7.5% to 12.5%. Those descriptions apply to rehabilitations by qualified OZ businesses, with Level 2 meeting additional requirements. The statewide annual cap would increase to $10.5 million annual for Level 1 OZ projects and to $11 million annually for Level 2 OZ projects. Both totals are double the current level and the project caps for noncommercial rehabilitation would also double. Under the bill, the governor would be required to include an appropriation to the trust account of at least $20 million for fiscal years 2025 through 2031.
The Novogradac Introduction to Historic Tax Credits booklet provides a look at the basics of the HTC incentive.