Maryland tax credit program seeks to focus funding on small commercial projects

The Maryland T&E Committee meeting on February 3, 2025, spotlighted the critical role of the historic revitalization tax credit, a program that has seen overwhelming demand, far exceeding available funds. Last year, requests for the credit reached a staggering $38 million, highlighting its popularity and the significant private investment it generates—$8 million for every $2 million in tax credits allocated.

During the session, officials emphasized the importance of maintaining the program in its current form, despite budget constraints. They suggested that if cuts were necessary, the focus should shift towards the less-utilized small commercial credit component, which currently holds about $2.3 million in unassigned credits. This recommendation aims to ensure that the most impactful aspects of the program continue to thrive.

In addition to tax credits, the meeting also addressed the Maryland 250 commission, which recently received $1.5 million in ARPA funding. This funding is earmarked for small grants and regional festivals, with plans to support local commissions that have emerged across the state.

Committee members raised concerns about the accessibility of funding opportunities, advocating for a centralized platform akin to a Maryland version of grants.gov. This would help organizations navigate available grants more effectively.

As the meeting concluded, officials reassured attendees that preparations for the 2030 census are already underway, with a focus on reaching underserved populations to ensure accurate representation and funding.

The discussions underscored the committee's commitment to fostering economic growth through strategic funding initiatives while navigating the challenges of budgetary constraints.