Maryland Governor Signs Legislation Extending HTC, Altering Provisions

Wednesday, May 25, 2022 - 11:15AM

Maryland Gov. Larry Hogan signed legislation extending the state historic tax credit (HTC) by seven years, altering annual caps for specific uses of the state HTC, increasing funding for the HTC reserve fund and increasing the annual set-aside for a small commercial project trust account. H.B. 27 extends the credit sunset from 2024 through the end of fiscal year 2031 and increases the annual state HTC cap for developments in a Level 1 opportunity zone (OZ) to $5.25 million, Level 2 OZ to $5.5 million and any other commercial rehabilitation outside a Level 1 or Level 2 OZ to $5 million. The annual budget set-aside for the reserve fund will increase from $12 million to $20 million for 2023 through 2031 and the annual funding for the small commercial project trust account will have an annual appropriation of $2 million.

The Novogradac Historic Rehabilitation Handbook provides an overview of the HTC and the intricacies of the incentive.

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