The State of Maryland and Washington County offers a variety of tax credit programs. Click on the headings below for information. For referral information on the various tax credit programs, please contact the Washington County Treasurer’s Office at 240-313-2110.
This tax credit may be granted against the amount of Washington County real property taxes based upon the assessed value of qualified land and improvements. Property owners must commit to remain in agricultural related pursuits for a period of ten years. The property must be located within a designated agricultural preservation district.
The credit shall be allowed for the tax year immediately following application and approval. For information, please contact the Washington County Planning Department at (240) 313-2430.
This program provides qualifying businesses with State income tax credits and local real property tax credits in return for job creation and capital investments made in the designated Enterprise Zone(s).
Approximately 5,910 acres in Washington County, MD are within two (2) state-designated Enterprise Zones; the Hagerstown-Washington County, MD Enterprise Zone and the Town of Hancock, MD Enterprise Zone. The Hagerstown-Washington County, MD Enterprise Zone encompasses approximately 4,410 acres located within the City of Hagerstown. The Town of Hancock, MD Enterprise Zone is comprised of 1,500 acres surrounding the Town of Hancock.
Local and state incentives are available to new or expanding businesses in these zones to promote growth of the industrial and commercial base. Each Enterprise Zone is approved by the State for a ten-year period.
Qualifying businesses may be eligible for local real property tax credits for up to ten (10) years on capital investments. Credits of 80% on the increased assessed value of real property for the first five (5) years, decreasing by ten percent (10%) in each remaining five (5) years.
Click here for a complete Enterprise Zone Information and Application packet.
Nearly 1,800 acres of prime industrial and commercial properties are located within the Washington County, MD Foreign Trade Zone (FTZ) #255. Buildings and sites are available for development with an array of am amenities including rail, airport runway access, superior interstate visibility, municipal water and sewer, and natural gas.
Imports may enter and be held in an FTZ without Customs duties. Duty is paid only when those imports are shipped into U.S. Customs territory.
Additional Foreign Trade Zone Resources:
This program is a three (3) year tax credit program for the construction of new or renovated space that achieves LEED Platinum, Gold, or Silver certification. The credit shall be applied only again the increase assessed value of a property as determined by the Maryland State Department of Assessments and Taxation. The amount of the credit shall be 30% of the increase for Platinum, 25% of the increase for Gold, and 20% of the increase for Silver.
Click here for a High Performance Commercial Building Tax Incentive Program Information and Application packet.
This tax credit may be granted against the amount of County real property taxes, based upon the amount expended by a taxpayer for restoration or preservation of an historic property. A property must be an historic site designated on the master plan for historic preservation, or within a historic district designated on the master plan for historic preservation. The tax credit shall be in an amount equal to ten percent (10%) of the owner’s expense for certain restoration and preservation of any existing structure up to the total amount of County real estate property taxes. A credit of five percent (5%) of the owner’s expense shall be allowed for new construction attached to an existing historic structure.
The credit shall be allowed for the tax year immediately following the work or any portion thereof is completed, and any unused portion of this tax credit, may be carried forward for as many as 5 tax years, after which the credit lapses.
For information, please contact the Washington County Planning Department at (240) 313-2430 or view our Historic Preservation Tax Credit virtual brochure.
Maryland’s Homeowners Property Tax Credit program is administered by the State of Maryland and tax credits are granted to eligible homeowners of all ages. Applications for this program must be filed by September 1, of each year. The program provides tax credits for homeowners who qualify on the basis of their household income in relation to the total property tax obligation.
Homeowner’s Credits are displayed on the tax bills. The amount of the credit will appear on the bill and reduces the tax amount due. If the credit is issued after the taxes are paid, a refund will automatically be made to the taxpayer. If you are anticipating a tax credit, but it has not been granted as of the due date of your taxes, property owners should pay the taxes in full to avoid interest and penalties.
For further information or to request an application form, contact the Maryland State Department of Assessments & Taxation at 1-800-944-7403, or visit their website at www.dat.state.md.us.
To assist homeowners who are impacted by large assessment increases, the State of Maryland, Washington County, and municipalities limit the annual taxable assessment increase for owner-occupied residential properties. This homestead tax credit is administered by the State and is automatically applied to all properties listed as “Principal Residence”. The Homestead Tax Credit rates are as follows:
If you are eligible but did not receive the credit or wish to learn more about the program, please contact the Maryland State Department of Assessments & Taxation at 301-791-3050 or visit their website at www.dat.state.md.us.
This tax credit program ranges from six (6) years to fifteen (15) years in tax credits on the County portion of real estate taxes for qualified businesses that either expand or locate and increase employment in Washington County. There are three (3) opportunities available:
Click here for a Job Creation and Capital Investment Real Property Tax Credit Program Information and Application packet.
This program provides a six (6) year tax credit for qualified businesses that either expand or relocate in Washington County, MD. The credit applies to Washington County, MD’s real property tax on real property owned or leased by the business and on personal property owned by that business. The amount of the New Jobs Tax Credit a business may claim against County taxes imposed on the assessed value of the new or expanded premises in which the credit is allowed is:
To qualify for this program, a business must:
Click here for a New Jobs Tax Credit Program Information and Application packet.
A commercial property stimulus program that offers a qualified project a three (3) year tax credit against the County real property tax on four-tenths of one (1) percent (0.004) of construction costs of the new improvement on the approved parcel.
This program is a valued part of our local business incentive package and considered integral in spurring economic growth in Washington County, MD.
Qualifying projects are entitled to priority plan review by the Washington County, MD Development Advisory Committee (DAC), deferral of County Site Plan application and review fees and a real estate tax credit issuance once buildings are constructed and occupied.
Click here for a Pad-Ready Site Commercial Stimulus Program overview and application packet.
There are numerous types of Property Tax Exemptions available through the State, some of the most used include exemptions for: charitable or educational properties; dwelling house of blind individual, surviving spouse; dwelling house of disabled veteran, surviving spouse; government properties; and properties owned by religious organizations.
For a full list of available exemptions, please reference The Annotated Code of Maryland Tax Property Article Title 7, Subtitle 2. General Property Tax Exemptions as follows:
Effective July 1, 2012, the Washington County Board of County Commissioners voted to ease the tax burden on homeowners age 65 and over that meet certain income qualifications. The credit applies to homeowner occupied residential properties, and supplements the State Homeowners’ Property Tax Credit program. Residents may apply by using the State’s Homeowners’ Property Tax Credit Application Form HTC-60. This form is used to determine eligibility for both the Washington County credit as well as the State of Maryland credit. The application will be processed and eligibility will be determined by the State Department of Assessments and Taxation.
The tax credit is based upon the amount by which the State of Maryland and Washington County real property taxes exceed a percentage of the homeowners’ combined income. Under the State of Maryland formula, the first $8,000 of income is excluded from the calculation. Washington County’s Senior Citizen supplemental tax credit may significantly increase the overall tax credit.
Washington County homeowners classified as 1% – 100% service-connected disabled American veterans (and surviving spouses) may be eligible for real estate property tax credit. For additional information on this program please call the State of Maryland Department of Veterans Affairs at 301-791-0356.
Click here for more information regarding these and other incentive programs offered in Washington County, MD.