Tax Credits for Historic Properties

Both the State of Maryland and Montgomery County offer homeowners property tax credits for expenses associated with work on historic homes, as described below. Homeowners should contact the State and the County for further information and to apply for the credits. Historic Takoma can provide technical assistance to homeowners. Contact HTI or send an inquiry to info@historictakoma.org to request assistance.

Homeowners have the opportunity to earn a state income tax credit equal to 20 percent of qualified rehabilitation expenditures. The credit is capped at $50,000 in a 24-month period and must have a minimum of $5,000 of eligible expenses to qualify. The state homeowner tax credit may be used with local historic tax credits, although Maryland Historic Trust review is independent of local review and may not be waived or substituted for local approval. 

Further information about the State program is available from the Maryland Historical Trust.

Montgomery County provides a tax credit of 25% of improvement costs on a historic property. Eligible work includes repairs, restoration, or preservation of exterior features of designated structures. Examples of eligible projects include, but are not limited to painting; repairing roofs or windows or replacing them in-kind; repairing architectural trim or ornament; uncovering and repairing original siding; repointing brick or stone foundations or chimneys restoring a documented feature such as a dormer or porch that was previously altered or removed; repairing and maintaining outbuildings such as barns and garages. Note that new construction and interior work are not eligible and that application must be made prior to the start of any construction work.

Further information about the County program is available from the Montgomery County Planning Department.