MD
Maryland House Bill HB27

Maryland 2022 Regular Session

Maryland House Bill HB27 Compare Versions

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1- LAWRENCE J. HOGAN, JR., Governor Ch. 449
21
3-– 1 –
4-Chapter 449
5-(House Bill 27)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ Italics indicate opposite chamber/conference committee amendments.
9+ *hb0027*
810
9-Historic Revitalization Tax Credit and Enterprise Zone Tax Credits – Funding
10-and Extension Alterations and Eligibility
11+HOUSE BILL 27
12+Q3 (2lr0317)
13+ENROLLED BILL
14+— Ways and Means/Budget and Taxation —
15+Introduced by Delegates Luedtke and Smith
1116
12-FOR the purpose of altering certain limitations on a certain credit against the State income
13-tax for certain commercial rehabilitation projects; establishing the Small
14-Commercial Project Trust Account within the Historic Revitalization Tax Credit
15-Reserve Fund; requiring the Governor, in certain fiscal years, to include in the
16-annual State budget an appropriation of at least a certain amount for the Reserve
17-Fund and the Trust Account; altering the aggregate amount of initial tax credit
18-certificates that may be issued for small commercial projects; extending for a certain
19-number of years the termination date of the tax credit; altering eligibility for and the
20-calculation of a certain credit against the property tax imposed on certain qualified
21-property located in certain enterprise zones; and generally relating to the historic
22-revitalization tax credit tax incentives for improvements to historic and enterprise
23-zone properties.
17+Read and Examined by Proofreaders:
2418
25-BY repealing and reenacting, with amendments,
26- Article – State Finance and Procurement
27-Section 5A–303(d), 5A–303(c)(2)(i), (d), (e), and (j)
28- Annotated Code of Maryland
29- (2021 Replacement Volume)
19+_______________________________________________
20+Proofreader.
21+_______________________________________________
22+Proofreader.
3023
31-BY repealing and reenacting, without amendments,
32- Article – Tax – Property
33- Section 9–103(a)(1) and (6) and (b)(1)
34- Annotated Code of Maryland
35- (2019 Replacement Volume and 2021 Supplement)
24+Sealed with the Great Seal and presented to the Governor, for his approval this
3625
37-BY repealing and reenacting, with amendments,
38- Article – Tax – Property
39- Section 9–103(d) and (e)(1)
40- Annotated Code of Maryland
41- (2019 Replacement Volume and 2021 Supplement)
26+_______ day of _______________ at _________________ _______ o’clock, ________M.
4227
43- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
44-That the Laws of Maryland read as follows:
28+______________________________________________
29+Speaker.
4530
46-Article – State Finance and Procurement
31+CHAPTER ______
4732
48-5A–303.
49- Ch. 449 2022 LAWS OF MARYLAND
33+AN ACT concerning 1
5034
51-– 2 –
52- (c) (2) (i) For any commercial rehabilitation, the State tax credit allowed
53-under this section may not exceed the lesser of:
35+Historic Revitalization Tax Credit and Enterprise Zone Tax Credits – Funding 2
36+and Extension Alterations and Eligibility 3
5437
55- 1. A. [$3,000,000] $5,000,000 for any commercial
56-rehabilitation other than a Level 1 or Level 2 opportunity zone project;
38+FOR the purpose of altering certain limitations on a certain credit against the State income 4
39+tax for certain commercial rehabilitation projects; establishing the Small 5
40+Commercial Project Trust Account within the Historic Revitalization Tax Credit 6
41+Reserve Fund; requiring the Governor, in certain fiscal years, to include in the 7
42+annual State budget an appropriation of at least a certain amount for the Reserve 8
43+Fund and the Trust Account; altering the aggregate amount of initial tax credit 9
44+certificates that may be issued for small commercial projects; extending for a certain 10
45+number of years the termination date of the tax credit; altering eligibility for and the 11
46+calculation of a certain credit against the property tax imposed on certain qualified 12
47+property located in certain enterprise zones; and generally relating to the historic 13
48+revitalization tax credit tax incentives for improvements to historic and enterprise 14
49+zone properties. 15 2 HOUSE BILL 27
5750
58- B. [$3,150,000] $5,250,000 for a Level 1 opportunity zone
59-project; or
6051
61- C. [$3,300,000] $5,500,000 for a Level 2 opportunity zone
62-project; or
6352
64- 2. the maximum amount specified under the initial credit
65-certificate issued for the rehabilitation.
53+BY repealing and reenacting, with amendments, 1
54+ Article – State Finance and Procurement 2
55+Section 5A–303(d), 5A–303(c)(2)(i), (d), (e), and (j) 3
56+ Annotated Code of Maryland 4
57+ (2021 Replacement Volume) 5
6658
67- (d) (1) (I) In this subsection[,] THE FOLLOWING WORDS HAVE THE
68-MEANINGS INDICATED .
59+BY repealing and reenacting, without amendments, 6
60+ Article – Tax – Property 7
61+ Section 9–103(a)(1) and (6) and (b)(1) 8
62+ Annotated Code of Maryland 9
63+ (2019 Replacement Volume and 2021 Supplement) 10
6964
70- (II) “Reserve Fund” means the Historic Revitalization Tax Credit
71-Reserve Fund established under paragraph (2) of this subsection.
65+BY repealing and reenacting, with amendments, 11
66+ Article – Tax – Property 12
67+ Section 9–103(d) and (e)(1) 13
68+ Annotated Code of Maryland 14
69+ (2019 Replacement Volume and 2021 Supplement) 15
7270
73- (III) “TRUST ACCOUNT” MEANS THE SMALL COMMERCIAL
74-PROJECT TRUST ACCOUNT ESTABLISHED U NDER PARAGRAPH (4) OF THIS
75-SUBSECTION.
71+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
72+That the Laws of Maryland read as follows: 17
7673
77- (2) (i) There is a Historic Revitalization Tax Credit Reserve Fund that
78-is a continuing, nonlapsing special fund that is not subject to § 7–302 of this article.
74+Article – State Finance and Procurement 18
7975
80- (ii) The money in the Fund shall be invested and reinvested by the
81-Treasurer, and interest and earnings shall be credited to the General Fund.
76+5A–303. 19
8277
83- (iii) If the fees paid in any fiscal year are less than the directly related
84-administrative costs of operating the Historic Revitalization Tax Credit Program, funds in
85-the Reserve Fund shall be used for the directly related administrative costs of the Program.
78+ (c) (2) (i) For any commercial rehabilitation, the State tax credit allowed 20
79+under this section may not exceed the lesser of: 21
8680
87- (3) (i) Subject to the provisions of this subsection, the Director shall
88-issue an initial credit certificate for each commercial rehabilitation for which a plan of
89-proposed rehabilitation is approved and the fees charged under subsection (b)(7)(i) of this
90-section are paid.
81+ 1. A. [$3,000,000] $5,000,000 for any commercial 22
82+rehabilitation other than a Level 1 or Level 2 opportunity zone project; 23
9183
92- (ii) An initial credit certificate issued under this subsection shall
93-state the maximum amount of credit under this section for which the commercial
94-rehabilitation may qualify.
95- LAWRENCE J. HOGAN, JR., Governor Ch. 449
84+ B. [$3,150,000] $5,250,000 for a Level 1 opportunity zone 24
85+project; or 25
9686
97-– 3 –
98- (iii) 1. Except as otherwise provided in this subparagraph and in
99-subsection (b)(7)(v) of this section, for any fiscal year, the Director may not issue initial
100-credit certificates for credit amounts in the aggregate totaling more than the amount
101-appropriated to the Reserve Fund for that fiscal year in the State budget as approved by
102-the General Assembly.
87+ C. [$3,300,000] $5,500,000 for a Level 2 opportunity zone 26
88+project; or 27
10389
104- 2. If the aggregate credit amounts under initial credit
105-certificates issued in a fiscal year total less than the amount appropriated to the Reserve
106-Fund for that fiscal year as a result of the limitation under subsection (b)(6) of this section,
107-any excess amount may be issued under initial credit certificates for projects in a county or
108-Baltimore City in the same fiscal year, without regard to the limitation under subsection
109-(b)(6) of this section.
90+ 2. the maximum amount specified under the initial credit 28
91+certificate issued for the rehabilitation. 29
11092
111- 3. Subject to subsubparagraph 2 of this subparagraph, if the
112-aggregate credit amounts under initial credit certificates issued in a fiscal year total less
113-than the amount appropriated to the Reserve Fund for that fiscal year, any excess amount
114-shall remain in the Reserve Fund and may be issued under initial credit certificates for the
115-next fiscal year.
93+ (d) (1) (I) In this subsection[,] THE FOLLOWING WORDS HAVE THE 30
94+MEANINGS INDICATED . 31
11695
117- 4. For any fiscal year, if funds are transferred from the
118-Reserve Fund under the authority of any provision of law other than paragraph [(4)] (5) of
119-this subsection, the maximum credit amounts in the aggregate for which the Director may
120-issue initial credit certificates shall be reduced by the amount transferred.
96+ (II) “Reserve Fund” means the Historic Revitalization Tax Credit 32
97+Reserve Fund established under paragraph (2) of this subsection. 33 HOUSE BILL 27 3
12198
122- 5. In each fiscal year, the Director shall estimate the amount
123-of fees to be collected based on the amount appropriated to the Reserve Fund and reserve
124-the difference between the estimated fees and estimated directly related administrative
125-costs of the Program to be used to administer the Program.
12699
127- 6. If the reservation of funds to administer the Program
128-under subsubparagraph 5 of this subparagraph is not necessary to cover the directly related
129-administrative costs of the Program, any excess amount shall remain in the Reserve Fund
130-and may be issued under initial credit certificates for the next fiscal year.
131100
132- (iv) 1. Subject to [subsubparagraph 2] SUBSUBPARAGRAPHS 2
133-THROUGH 5 of this subparagraph, for each of fiscal years 2018 through [2024] 2031, the
134-Governor shall include in the budget bill an appropriation to the Reserve Fund.
101+ (III) “TRUST ACCOUNT” MEANS THE SMALL COMMERCIAL 1
102+PROJECT TRUST ACCOUNT ESTABLISHED U NDER PARAGRAPH (4) OF THIS 2
103+SUBSECTION. 3
135104
136- 2. For each of fiscal years 2023 and 2024 THROUGH 2031,
137-the Governor shall include in the budget bill an appropriation to the Reserve Fund of at
138-least $12,000,000 $20,000,000.
105+ (2) (i) There is a Historic Revitalization Tax Credit Reserve Fund that 4
106+is a continuing, nonlapsing special fund that is not subject to § 7–302 of this article. 5
139107
140- 3. FOR EACH OF FISCAL YE ARS 2025 AND 2026, THE
141-GOVERNOR SHALL INCLUD E IN THE BUDGET BILL AN APPROPRIATION TO THE
142-RESERVE FUND OF AT LEAST $24,000,000 $16,000,000.
143- Ch. 449 2022 LAWS OF MARYLAND
108+ (ii) The money in the Fund shall be invested and reinvested by the 6
109+Treasurer, and interest and earnings shall be credited to the General Fund. 7
144110
145-– 4 –
146- 4. FOR EACH OF FISCAL YE ARS 2027 THROUGH 2031,
147-THE GOVERNOR SHALL INCLUD E IN THE BUDGET BILL AN APPROPRIATION TO THE
148-RESERVE FUND OF AT LEAST $36,000,000 $20,000,000.
111+ (iii) If the fees paid in any fiscal year are less than the directly related 8
112+administrative costs of operating the Historic Revitalization Tax Credit Program, funds in 9
113+the Reserve Fund shall be used for the directly related administrative costs of the Program. 10
149114
150- 5. 3. THE AMOUNTS AMOUNT DESCRIBED UNDER
151-SUBSUBPARAGRAPHS 2 THROUGH 4 SUBSUBPARAGRAPH 2 OF THIS SUBPARAGRAPH
152-SHALL BE IN ADDITION TO THE APPROPRIATION S TO THE TRUST ACCOUNT
153-REQUIRED UNDER PARAG RAPH (4) OF THIS SUBSECTION .
115+ (3) (i) Subject to the provisions of this subsection, the Director shall 11
116+issue an initial credit certificate for each commercial rehabilitation for which a plan of 12
117+proposed rehabilitation is approved and the fees charged under subsection (b)(7)(i) of this 13
118+section are paid. 14
154119
155- (v) Notwithstanding the provisions of § 7–213 of this article, the
156-Governor may not reduce an appropriation for the Reserve Fund in the State budget as
157-approved by the General Assembly.
120+ (ii) An initial credit certificate issued under this subsection shall 15
121+state the maximum amount of credit under this section for which the commercial 16
122+rehabilitation may qualify. 17
158123
159- (vi) The Director may not issue an initial credit certificate for any
160-fiscal year after fiscal year [2024] 2031.
124+ (iii) 1. Except as otherwise provided in this subparagraph and in 18
125+subsection (b)(7)(v) of this section, for any fiscal year, the Director may not issue initial 19
126+credit certificates for credit amounts in the aggregate totaling more than the amount 20
127+appropriated to the Reserve Fund for that fiscal year in the State budget as approved by 21
128+the General Assembly. 22
161129
162- (4) (I) WITHIN THE RESERVE FUND, THERE IS A SMALL
163-COMMERCIAL PROJECT TRUST ACCOUNT.
130+ 2. If the aggregate credit amounts under initial credit 23
131+certificates issued in a fiscal year total less than the amount appropriated to the Reserve 24
132+Fund for that fiscal year as a result of the limitation under subsection (b)(6) of this section, 25
133+any excess amount may be issued under initial credit certificates for projects in a county or 26
134+Baltimore City in the same fiscal year, without regard to the limitation under subsection 27
135+(b)(6) of this section. 28
164136
165- (II) 1. THE TRUST ACCOUNT IS ESTABLISHE D FOR THE
166-ISSUANCE OF TAX CRED IT CERTIFICATES FOR SMALL COMMERCIAL PRO JECTS.
137+ 3. Subject to subsubparagraph 2 of this subparagraph, if the 29
138+aggregate credit amounts under initial credit certificates issued in a fiscal year total less 30
139+than the amount appropriated to the Reserve Fund for that fiscal year, any excess amount 31
140+shall remain in the Reserve Fund and may be issued under initial credit certificates for the 32
141+next fiscal year. 33
167142
168- 2. FUNDS IN THE TRUST ACCOUNT SHALL BE USED
169-ONLY FOR TRANSFERS F ROM THE RESERVE FUND TO THE GENERAL FUND IN
170-ACCORDANCE WITH PARA GRAPH (5) OF THIS SUBSECTION W ITH RESPECT TO TAX
171-CREDIT CERTIFICATES ISSUED FOR SMALL COM MERCIAL PROJECTS .
143+ 4. For any fiscal year, if funds are transferred from the 34
144+Reserve Fund under the authority of any provision of law other than paragraph [(4)] (5) of 35 4 HOUSE BILL 27
172145
173- (III) THE TRUST ACCOUNT CONSISTS OF :
174146
175- 1. MONEY APPROPRIATED I N THE STATE BUDGET FOR
176-THE TRUST ACCOUNT; AND
147+this subsection, the maximum credit amounts in the aggregate for which the Director may 1
148+issue initial credit certificates shall be reduced by the amount transferred. 2
177149
178- 2. ANY OTHER MONEY FROM ANY OTHER SOURCE
179-ACCEPTED FOR THE BEN EFIT OF THE TRUST ACCOUNT.
150+ 5. In each fiscal year, the Director shall estimate the amount 3
151+of fees to be collected based on the amount appropriated to the Reserve Fund and reserve 4
152+the difference between the estimated fees and estimated directly related administrative 5
153+costs of the Program to be used to administer the Program. 6
180154
181- (IV) FOR EACH OF FISCAL YE ARS 2024 THROUGH 2031, THE
182-GOVERNOR SHALL INCLUD E IN THE BUDGET BILL AN APPROPRIATION TO THE
183-TRUST ACCOUNT OF AT LEAST $4,000,000 $2,000,000.
155+ 6. If the reservation of funds to administer the Program 7
156+under subsubparagraph 5 of this subparagraph is not necessary to cover the directly related 8
157+administrative costs of the Program, any excess amount shall remain in the Reserve Fund 9
158+and may be issued under initial credit certificates for the next fiscal year. 10
184159
185- [(4)] (5) (i) Except as provided in this paragraph, money appropriated
186-to the Reserve Fund shall remain in the Fund.
187- LAWRENCE J. HOGAN, JR., Governor Ch. 449
160+ (iv) 1. Subject to [subsubparagraph 2] SUBSUBPARAGRAPHS 2 11
161+THROUGH 5 of this subparagraph, for each of fiscal years 2018 through [2024] 2031, the 12
162+Governor shall include in the budget bill an appropriation to the Reserve Fund. 13
188163
189-– 5 –
190- (ii) 1. Within 15 days after the end of each calendar quarter, the
191-Trust shall notify the Comptroller as to each commercial rehabilitation completed and
192-certified during the quarter:
164+ 2. For each of fiscal years 2023 and 2024 THROUGH 2031, 14
165+the Governor shall include in the budget bill an appropriation to the Reserve Fund of at 15
166+least $12,000,000 $20,000,000. 16
193167
194- A. the maximum credit amount stated in the initial credit
195-certificate for the project; and
168+ 3. FOR EACH OF FISCAL YE ARS 2025 AND 2026, THE 17
169+GOVERNOR SHALL INCLUD E IN THE BUDGET BILL AN APPROPRIATION TO THE 18
170+RESERVE FUND OF AT LEAST $24,000,000 $16,000,000. 19
196171
197- B. the final certified credit amount for the project.
172+ 4. FOR EACH OF FISCAL YE ARS 2027 THROUGH 2031, 20
173+THE GOVERNOR SHALL INCLUD E IN THE BUDGET BILL AN APPROPRIATION TO THE 21
174+RESERVE FUND OF AT LEAST $36,000,000 $20,000,000. 22
198175
199- 2. On notification that a project has been certified, the
200-Comptroller shall transfer an amount equal to the maximum credit amount stated in the
201-initial credit certificate for the project from the Reserve Fund to the General Fund.
176+ 5. 3. THE AMOUNTS AMOUNT DESCRIBED UNDER 23
177+SUBSUBPARAGRAPHS 2 THROUGH 4 SUBSUBPARAGRAPH 2 OF THIS SUBPARAGRAPH 24
178+SHALL BE IN ADDITION TO THE APPROPRIATION S TO THE TRUST ACCOUNT 25
179+REQUIRED UNDER PARAG RAPH (4) OF THIS SUBSECTION . 26
202180
203- (iii) 1. On or before October 1 of each year, the Trust shall notify
204-the Comptroller as to the maximum credit amount stated in the initial credit certificate for
205-each commercial rehabilitation for which the initial credit certificate has expired under
206-subsection (c)(3) of this section as of the end of the prior fiscal year.
181+ (v) Notwithstanding the provisions of § 7–213 of this article, the 27
182+Governor may not reduce an appropriation for the Reserve Fund in the State budget as 28
183+approved by the General Assembly. 29
207184
208- 2. On notification that the initial credit certificate for a
209-project has expired under subsection (c)(3) of this section, the Comptroller shall transfer an
210-amount equal to the maximum credit amount stated in the initial credit certificate for the
211-project from the Reserve Fund to the General Fund.
185+ (vi) The Director may not issue an initial credit certificate for any 30
186+fiscal year after fiscal year [2024] 2031. 31
212187
213- (e) (1) Subject to the provisions of this subsection, the Director shall issue an
214-initial credit certificate for each approved small commercial project on a first–come,
215-first–served basis.
188+ (4) (I) WITHIN THE RESERVE FUND, THERE IS A SMALL 32
189+COMMERCIAL PROJECT TRUST ACCOUNT. 33
190+ HOUSE BILL 27 5
216191
217- (2) An initial credit certificate issued under this subsection shall state the
218-maximum amount of tax credit for which the applicant is eligible.
219192
220- (3) (i) [The] BEFORE FISCAL YEAR 2024, THE Director may not issue
221-an initial credit certificate under this subsection after the aggregate amount of initial credit
222-certificates issued for small commercial projects totals $5,000,000.
193+ (II) 1. THE TRUST ACCOUNT IS ESTABLISHE D FOR THE 1
194+ISSUANCE OF TAX CRED IT CERTIFICATES FOR SMALL COMMERCIAL PRO JECTS. 2
223195
224- (ii) [For] BEFORE FISCAL YEAR 2024, FOR a targeted project, the
225-Director may not issue an initial credit certificate under this subsection:
196+ 2. FUNDS IN THE TRUST ACCOUNT SHALL BE USED 3
197+ONLY FOR TRANSFERS F ROM THE RESERVE FUND TO THE GENERAL FUND IN 4
198+ACCORDANCE WITH PARA GRAPH (5) OF THIS SUBSECTION W ITH RESPECT TO TAX 5
199+CREDIT CERTIFICATES ISSUED FOR SMALL COM MERCIAL PROJECTS. 6
226200
227- 1. after the aggregate amount of initial credit certificates
228-issued for agricultural structures totals $1,000,000; or
201+ (III) THE TRUST ACCOUNT CONSISTS OF : 7
229202
230- 2. after the aggregate amount of initial credit certificates
231-issued for post–World War II structures totals $1,000,000.
203+ 1. MONEY APPROPRIATED I N THE STATE BUDGET FOR 8
204+THE TRUST ACCOUNT; AND 9
232205
233- (III) BEGINNING FISCAL YEAR 2024 AND EACH FISCAL YEAR
234-THEREAFTER , THE DIRECTOR MAY NOT ISSU E INITIAL CREDIT CER TIFICATES FOR
235-SMALL COMMERCIAL PRO JECTS UNDER THIS SUB SECTION FOR CREDI T AMOUNTS IN Ch. 449 2022 LAWS OF MARYLAND
206+ 2. ANY OTHER MONEY FROM ANY OTHER SOURCE 10
207+ACCEPTED FOR THE BEN EFIT OF THE TRUST ACCOUNT. 11
236208
237-– 6 –
238-THE AGGREGATE TOTALI NG MORE THAN THE AMO UNT OF FUNDS IN THE SMALL
239-COMMERCIAL PROJECT TRUST ACCOUNT ESTABLISHED U NDER SUBSECTION (D)(4)
240-OF THIS SECTION.
209+ (IV) FOR EACH OF FISCAL YE ARS 2024 THROUGH 2031, THE 12
210+GOVERNOR SHALL INCLUD E IN THE BUDGET BILL AN APPROPRIATION TO THE 13
211+TRUST ACCOUNT OF AT LEAST $4,000,000 $2,000,000. 14
241212
242- (j) (1) Subject to the provisions of this subsection, the provisions of this section
243-and the tax credit authorized under this section shall terminate as of July 1, [2024] 2031.
213+ [(4)] (5) (i) Except as provided in this paragraph, money appropriated 15
214+to the Reserve Fund shall remain in the Fund. 16
244215
245- (2) On and after July 1, [2024] 2031:
216+ (ii) 1. Within 15 days after the end of each calendar quarter, the 17
217+Trust shall notify the Comptroller as to each commercial rehabilitation completed and 18
218+certified during the quarter: 19
246219
247- (i) the tax credit authorized under this section may be claimed for:
220+ A. the maximum credit amount stated in the initial credit 20
221+certificate for the project; and 21
248222
249- 1. a rehabilitation project, other than a commerc ial
250-rehabilitation, for which an application for approval of a plan of proposed rehabilitation
251-was received by the Director on or before June 30, [2024] 2031; or
223+ B. the final certified credit amount for the project. 22
252224
253- 2. a commercial rehabilitation for which an initial credit
254-certificate has been awarded under subsection (d) of this section; and
225+ 2. On notification that a project has been certified, the 23
226+Comptroller shall transfer an amount equal to the maximum credit amount stated in the 24
227+initial credit certificate for the project from the Reserve Fund to the General Fund. 25
255228
256- (ii) the Director shall continue to report to the Governor and the
257-General Assembly as required under subsection (i) of this section for as long as any
258-rehabilitation project for which the tax credit may be claimed remains incomplete.
229+ (iii) 1. On or before October 1 of each year, the Trust shall notify 26
230+the Comptroller as to the maximum credit amount stated in the initial credit certificate for 27
231+each commercial rehabilitation for which the initial credit certificate has expired under 28
232+subsection (c)(3) of this section as of the end of the prior fiscal year. 29
259233
260- SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
261-as follows:
234+ 2. On notification that the initial credit certificate for a 30
235+project has expired under subsection (c)(3) of this section, the Comptroller shall transfer an 31
236+amount equal to the maximum credit amount stated in the initial credit certificate for the 32
237+project from the Reserve Fund to the General Fund. 33 6 HOUSE BILL 27
262238
263-Article – Tax – Property
264239
265-9–103.
266240
267- (a) (1) In this section the following words have the meanings indicated.
241+ (e) (1) Subject to the provisions of this subsection, the Director shall issue an 1
242+initial credit certificate for each approved small commercial project on a first–come, 2
243+first–served basis. 3
268244
269- (6) (i) “Qualified property” means real property that is:
245+ (2) An initial credit certificate issued under this subsection shall state the 4
246+maximum amount of tax credit for which the applicant is eligible. 5
270247
271- 1. not used for residential purposes;
248+ (3) (i) [The] BEFORE FISCAL YEAR 2024, THE Director may not issue 6
249+an initial credit certificate under this subsection after the aggregate amount of initial credit 7
250+certificates issued for small commercial projects totals $5,000,000. 8
272251
273- 2. used in a trade or business by a business entity that meets
274-the requirements of § 5–707 of the Economic Development Article; and
252+ (ii) [For] BEFORE FISCAL YEAR 2024, FOR a targeted project, the 9
253+Director may not issue an initial credit certificate under this subsection: 10
275254
276- 3. located in an enterprise zone that is designated under
277-Title 5, Subtitle 7 of the Economic Development Article.
255+ 1. after the aggregate amount of initial credit certificates 11
256+issued for agricultural structures totals $1,000,000; or 12
278257
279- (ii) “Qualified property” includes personal property on real property
280-that is located in a focus area as defined in § 5–701 of the Economic Development Article.
281- LAWRENCE J. HOGAN, JR., Governor Ch. 449
258+ 2. after the aggregate amount of initial credit certificates 13
259+issued for post–World War II structures totals $1,000,000. 14
282260
283-– 7 –
284- (b) (1) The governing body of a county or of a municipal corporation shall grant
285-a tax credit under this section against the property tax imposed on the eligible assessment
286-of qualified property.
261+ (III) BEGINNING FISCAL YEAR 2024 AND EACH FISCAL YEAR 15
262+THEREAFTE R, THE DIRECTOR MAY NOT ISSU E INITIAL CREDIT CER TIFICATES FOR 16
263+SMALL COMMERCIAL PRO JECTS UNDER THIS SUB SECTION FOR CREDIT A MOUNTS IN 17
264+THE AGGREGATE TOTALI NG MORE THAN THE AMO UNT OF FUNDS IN THE SMALL 18
265+COMMERCIAL PROJECT TRUST ACCOUNT ESTABLISHED U NDER SUBSECT ION (D)(4) 19
266+OF THIS SECTION. 20
287267
288- (d) (1) [The] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS
289-SUBSECTION, THE appropriate governing body shall calculate the amount of the tax credit
290-under this section equal to a percentage of the amount of property tax imposed on the
291-eligible assessment of the qualified property, as follows:
268+ (j) (1) Subject to the provisions of this subsection, the provisions of this section 21
269+and the tax credit authorized under this section shall terminate as of July 1, [2024] 2031. 22
292270
293- (i) 80% in each of the 1st 5 taxable years following the calendar year
294-in which the property initially becomes a qualified property;
271+ (2) On and after July 1, [2024] 2031: 23
295272
296- (ii) 70% in the 6th taxable year;
273+ (i) the tax credit authorized under this section may be claimed for: 24
297274
298- (iii) 60% in the 7th taxable year;
275+ 1. a rehabilitation project, other than a commercial 25
276+rehabilitation, for which an application for approval of a plan of proposed rehabilitation 26
277+was received by the Director on or before June 30, [2024] 2031; or 27
299278
300- (iv) 50% in the 8th taxable year;
279+ 2. a commercial rehabilitation for which an initial credit 28
280+certificate has been awarded under subsection (d) of this section; and 29
301281
302- (v) 40% in the 9th taxable year; and
282+ (ii) the Director shall continue to report to the Governor and the 30
283+General Assembly as required under subsection (i) of this section for as long as any 31
284+rehabilitation project for which the tax credit may be claimed remains incomplete. 32
285+ HOUSE BILL 27 7
303286
304- (vi) 30% in the 10th taxable year.
305287
306- (2) FOR NEWLY CONSTRUCTED QUALIFIED PROPERTY T HAT
307-PROVIDES BOTH OFFICE AND RETAIL SPACE AND BECAME ELIGIBLE FOR THE CREDIT
308-UNDER THIS SECTION O N OR AFTER JANUARY 1, 2019, BUT BEFORE JANUARY 1,
309-2022, THE APPROPRIATE GOVERNING BODY SHALL CALCULATE THE AMOUNT OF
310-THE TAX CREDIT UNDER THIS SECTION EQUAL T O A PERCENTAGE OF TH E AMOUNT
311-OF PROPERTY TAX IMPO SED ON THE ELIGIBLE ASSESSMENT OF THE QU ALIFIED
312-PROPERTY AS FOLLOWS :
288+ SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 1
289+as follows: 2
313290
314- (I) 80% IN EACH OF THE 1ST 8 TAXABLE YEARS FOLLO WING
315-THE CALENDAR YEAR IN WHICH THE PROPERTY I NITIALLY BECOMES A Q UALIFIED
316-PROPERTY;
291+Article – Tax – Property 3
317292
318- (II) 70% IN THE 9TH TAXABLE YEAR ;
293+9–103. 4
319294
320- (III) 60% IN THE 10TH TAXABLE YEAR ;
295+ (a) (1) In this section the following words have the meanings indicated. 5
321296
322- (IV) 50% IN THE 11TH TAXABLE YEAR ;
297+ (6) (i) “Qualified property” means real property that is: 6
323298
324- (V) 40% IN THE 12TH TAXABLE YEAR ; AND
299+ 1. not used for residential purposes; 7
325300
326- (VI) 30% IN THE 13TH TAXABLE YEAR .
327- Ch. 449 2022 LAWS OF MARYLAND
301+ 2. used in a trade or business by a business entity that meets 8
302+the requirements of § 5–707 of the Economic Development Article; and 9
328303
329-– 8 –
330- [(2)] (3) The Department shall allocate the eligible assessment to the
331-nonresidential part of the qualified property at the same percentage as the square footage
332-of the nonresidential part is to the total square footage of the building.
304+ 3. located in an enterprise zone that is designated under 10
305+Title 5, Subtitle 7 of the Economic Development Article. 11
333306
334- [(3)] (4) For purposes of calculating the amount of the credit allowed
335-under this section, the amount of property tax imposed on the eligible assessment shall be
336-calculated without reduction for any credits allowed under this title.
307+ (ii) “Qualified property” includes personal property on real property 12
308+that is located in a focus area as defined in § 5–701 of the Economic Development Article. 13
337309
338- [(4)] (5) For qualified property located in a focus area, the appropriate
339-governing body shall calculate the amount of the tax credit under this section equal to 80%
340-of the amount of property tax imposed on the eligible assessment of the qualified property:
310+ (b) (1) The governing body of a county or of a municipal corporation shall grant 14
311+a tax credit under this section against the property tax imposed on the eligible assessment 15
312+of qualified property. 16
341313
342- (I) FOR NEWLY CONSTRUCTE D QUALIFIED PROPERTY THAT
343-PROVIDES BOTH OFFICE AND RETAIL SPACE AND BECAME ELIGIBLE FOR THE CREDIT
344-UNDER THIS SECTION O N OR AFTER JANUARY 1, 2019, BUT BEFORE JANUARY 1,
345-2022, FOR EACH OF THE 13 TAXABLE YEARS FOLLOW ING THE CALENDAR YEAR IN
346-WHICH THE PROPERTY I NITIALLY BECOMES A Q UALIFIED PROPERTY ; OR
314+ (d) (1) [The] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 17
315+SUBSECTION, THE appropriate governing body shall calculate the amount of the tax credit 18
316+under this section equal to a percentage of the amount of property tax imposed on the 19
317+eligible assessment of the qualified property, as follows: 20
347318
348- (II) FOR ANY OTHER QUALIF IED PROPERTY , for each of the 10
349-taxable years following the calendar year in which the property initially becomes a qualified
350-property.
319+ (i) 80% in each of the 1st 5 taxable years following the calendar year 21
320+in which the property initially becomes a qualified property; 22
351321
352- (e) (1) A tax credit under this section is available to a qualified property for no
353-more than 10 consecutive years OR, IN THE CASE OF NEWLY CONSTRUCTED QUALIFIE D
354-PROPERTY THAT PROVIDES BOTH OFFICE AND RETAIL SPACE AND BECAME ELIGIBLE
355-FOR THE CREDIT UNDER THIS SECTION ON OR AFTER JANUARY 1, 2019, BUT BEFORE
356-JANUARY 1, 2022, NO MORE THAN 13 CONSECUTIVE YEARS , beginning with:
322+ (ii) 70% in the 6th taxable year; 23
357323
358- (i) the taxable year following the calendar year in which the real
359-property initially becomes a qualified property; or
324+ (iii) 60% in the 7th taxable year; 24
360325
361- (ii) the taxable year in which the real property initially becomes a
362-qualified property, subject to the approval of the appropriate local governing body and the
363-Secretary of Commerce.
326+ (iv) 50% in the 8th taxable year; 25
364327
365- SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall be
366-applicable to all taxable years beginning after December 31, 2021.
328+ (v) 40% in the 9th taxable year; and 26
367329
368- SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be
369-applicable to all taxable years beginning after June 30, 2022.
330+ (vi) 30% in the 10th taxable year. 27
370331
371- SECTION 2. 5. AND BE IT FURTHER ENACTED, That this Act s hall take effect
372-July June 1, 2022.
332+ (2) FOR NEWLY CONSTRUCTED QUALIFIED PROPERTY T HAT 28
333+PROVIDES BOTH OFFICE AND RETAIL SPACE AND BECAME ELIGIBLE FOR THE CREDIT 29 8 HOUSE BILL 27
373334
374-Approved by the Governor, May 16, 2022.
335+
336+UNDER THIS SECTION O N OR AFTER JANUARY 1, 2019, BUT BEFORE JANUARY 1, 1
337+2022, THE APPROPRIATE GOVERNING BODY SHALL CALCULATE THE AMOUNT OF 2
338+THE TAX CREDIT UNDER THIS SECTION EQUAL T O A PERCENTAGE OF TH E AMOUNT 3
339+OF PROPERTY TAX IMPO SED ON THE ELIGIBLE ASSESSMENT OF THE QU ALIFIED 4
340+PROPERTY AS FOLLOWS : 5
341+
342+ (I) 80% IN EACH OF THE 1ST 8 TAXABLE YEARS FOLLO WING 6
343+THE CALENDAR YEAR IN WHICH THE PROPERTY I NITIALLY BECOMES A Q UALIFIED 7
344+PROPERTY; 8
345+
346+ (II) 70% IN THE 9TH TAXABLE YEAR ; 9
347+
348+ (III) 60% IN THE 10TH TAXABLE YEAR ; 10
349+
350+ (IV) 50% IN THE 11TH TAXABLE YEAR ; 11
351+
352+ (V) 40% IN THE 12TH TAXABLE YEAR ; AND 12
353+
354+ (VI) 30% IN THE 13TH TAXABLE YEAR . 13
355+
356+ [(2)] (3) The Department shall allocate the eligible assessment to the 14
357+nonresidential part of the qualified property at the same percentage as the square footage 15
358+of the nonresidential part is to the total square footage of the building. 16
359+
360+ [(3)] (4) For purposes of calculating the amount of the credit allowed 17
361+under this section, the amount of property tax imposed on the eligible assessment shall be 18
362+calculated without reduction for any credits allowed under this title. 19
363+
364+ [(4)] (5) For qualified property located in a focus area, the appropriate 20
365+governing body shall calculate the amount of the tax credit under this section equal to 80% 21
366+of the amount of property tax imposed on the eligible assessment of the qualified property: 22
367+
368+ (I) FOR NEWLY CONSTRUCTE D QUALIFIED PROPERTY THAT 23
369+PROVIDES BOTH OFFICE AND RETAIL SPACE AND BECAME ELIGIBLE FOR THE CREDIT 24
370+UNDER THIS SECTION O N OR AFTER JANUARY 1, 2019, BUT BEFORE JANUARY 1, 25
371+2022, FOR EACH OF THE 13 TAXABLE YEARS FOLLOW ING THE CALENDAR YEAR IN 26
372+WHICH THE PROPERTY I NITIALLY BECOMES A Q UALIFIED PROPERTY ; OR 27
373+
374+ (II) FOR ANY OTHER QUALIF IED PROPERTY , for each of the 10 28
375+taxable years following the calendar year in which the property initially becomes a qualified 29
376+property. 30
377+
378+ (e) (1) A tax credit under this section is available to a qualified property for no 31
379+more than 10 consecutive years OR, IN THE CASE OF NEWLY CONSTRUCTED QUALIFIE D 32
380+PROPERTY THAT PROVIDES BOTH OFFICE AND RETAIL SPACE AND BECAME ELIGIBLE 33 HOUSE BILL 27 9
381+
382+
383+FOR THE CREDIT UNDER THIS SECTION ON OR AFTER JANUARY 1, 2019, BUT BEFORE 1
384+JANUARY 1, 2022, NO MORE THAN 13 CONSECUTIVE YEARS , beginning with: 2
385+
386+ (i) the taxable year following the calendar year in which the real 3
387+property initially becomes a qualified property; or 4
388+
389+ (ii) the taxable year in which the real property initially becomes a 5
390+qualified property, subject to the approval of the appropriate local governing body and the 6
391+Secretary of Commerce. 7
392+
393+ SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall be 8
394+applicable to all taxable years beginning after December 31, 2021. 9
395+
396+ SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be 10
397+applicable to all taxable years beginning after June 30, 2022. 11
398+
399+ SECTION 2. 5. AND BE IT FURTHER ENACTED, That this Act shall take effe ct 12
400+July June 1, 2022. 13
401+
402+
403+
404+
405+Approved:
406+________________________________________________________________________________
407+ Governor.
408+________________________________________________________________________________
409+ Speaker of the House of Delegates.
410+________________________________________________________________________________
411+ President of the Senate.