Maryland House Bill HB202

Maryland 2022 Regular Session

• Introduced: 1/13/22
• Refer: 1/13/22

Caption

Historic Revitalization Tax Credit – Substantial Rehabilitation – Threshold Amount

Impact

The changes introduced by HB202 are expected to have a positive impact on the preservation of historic homes throughout the state. By lowering the threshold for what constitutes substantial rehabilitation, the bill encourages more property owners to invest in fixing up their homes to meet the qualifying standards. This may lead to increased economic activity in the construction sector and bolster local communities that benefit from such revitalization efforts, ultimately contributing to enhanced property values and community aesthetics.

Summary

House Bill 202, also known as the Historic Revitalization Tax Credit – Substantial Rehabilitation – Threshold Amount, aims to amend the existing historic revitalization tax credit program. The bill proposes alterations to the definition of 'substantial rehabilitation' by lowering the threshold amount necessary for homeowners who qualify for the state homeowners’ property tax credit. This modification is intended to support and encourage the rehabilitation of historic properties by making it more accessible for homeowners to benefit from tax credits.

Contention

Although the intent of the bill is primarily to foster economic development through historic preservation, there may be contention surrounding how the lowered threshold could impact the allocation of state resources towards this credit program. Critics might argue that easier qualification for tax credits could lead to misuse or overextension of funds without achieving significant preservation outcomes. Furthermore, debates may also arise regarding the fiscal implications on the state budget, as reduced property tax revenues could affect local government funding and initiatives.