Mayor, In Partnership with City Council, Announces Plans to Reauthorize Three Tax Credits
Tuesday Oct 19th, 2021
FOR IMMEDIATE RELEASE
CHAP, Newly Constructed Dwelling, and High Performance Market Rate Tax Credits Slated for Reauthorization
BALTIMORE, MD. (Tuesday, October 19, 2021) – Mayor Brandon M. Scott, in partnership with the City Council, is announcing plans to reauthorize three tax credits set to expire: the CHAP Tax Credit, the Newly Constructed Dwelling Tax Credit, and the High Performance Market Rate Tax Credit. The reauthorization bills associated with the credits were introduced by the City Council yesterday evening and will start to move through the City Council process for approval.
The Mayor will also establish a Tax Credit Review Committee, which will be tasked with evaluating Baltimore’s existing tax credits and ensuring the city’s incentive program sustainably and equitably grows the City’s tax base. The committee will be co-chaired by Councilmember Eric Costello and Downtown Partnership of Baltimore President Shelonda Stokes.
“I look forward to working closely with Council President Mosby, Councilman Costello, Shelonda Stokes, and the Tax Credit Review Committee to ensure our incentive structure is fit for today’s Baltimore, while simultaneously benefiting our residents, homeowners, local business community, and overall strategy for growth,” said Mayor Brandon M. Scott.
“Growing Baltimore in a responsible and equitable way is paramount, and getting our tax code right plays an important role in achieving that goal and ultimately transforming our city,” said City Council President Nick J. Mosby. “As Baltimore’s leaders, we must always be intentional about developing sustainable solutions that bolster smart and equitable development. I am excited to help establish this review committee and will do all I can to support and extend tax credits that deliver results.”
As the development timetables for projects can take years to come to fruition, the reauthorization of these three tax credits would build predictability into the process and aid projects in moving forward:
- CHAP Tax Credit — Incentivizes homeowners and small businesses to make substantive rehabilitation of buildings in historic neighborhoods, from row homes to the adaptive reuse of commercial properties.
- Newly Constructed Dwelling Tax Credit — Incentivizes construction of new row homes and the substantial rehabilitation of vacant homes.
- High Performance Market Rate Tax Credit — Incentivizes construction of new apartment buildings and the conversion of vacant commercial properties to apartment buildings.
“The reauthorization of these credits is critically important to growing our City, creating new jobs, and ensuring opportunity across all neighborhoods,” said Councilman Eric T. Costello, chairman of the Council’s Ways and Means Committee. “By establishing the Tax Credit Review Committee, the Mayor’s deliberate approach will make sure that we continue to offer credits that have demonstrated results in growing our city and that we act in a fiscally-prudent manner to drive economic development in all communities.”
“These tax credits have fueled development across the city so it’s important to keep them going while we perform a comprehensive review of what’s working, what’s not, and where we have unmet needs,” said Downtown Partnership President, Shelonda Stokes. “The process matters moving forward, as we create new tools to stimulate investment, equity, and economic opportunity.”
The membership of the Tax Credit Review Committee is still being finalized and will be announced in the coming weeks.