Baltimore– A key legislative panel today heard arguments for the reauthorization of what some say is Maryland’s most effective smart growth tool. Environmental and redevelopment advocates touted the success of the program in the past and its future advantages. The improved Maryland Heritage Structure Rehabilitation Tax Credit would renew incentives for developers and individuals to rehabilitate older buildings and historic areas. This redevelopment would reduce Maryland’s greenhouse gas emissions, save our open space, and reduce the number of miles Marylanders have to drive.
“The historic tax credit is an excellent policy tool. It will ensure investment throughout Maryland,” said Mike Sherling, Policy Associate at Environment Maryland. “Right now, we have an opportunity to renew and enhance a policy tool that will greatly promote smart growth in Maryland.”
Detractors of the bill have incorrectly criticized Baltimore City for over-using the credits. While Baltimore has many historic buildings, every jurisdiction in Maryland has taken advantage of the tax credit in the past. “This tax credit will spur economic investment all over Maryland,” added Sherling, “In the past, every qualified application from outside of Baltimore City has received the tax credit, while about half of the qualified applications from Baltimore City have been rejected because of constraints on the number of tax credits that can go to properties in Baltimore City.”
The Senate held a hearing today to discuss this bill in the Budget and Tax committee, while the House of Delegates will hold its hearing the next day in the Ways and Means committee tomorrow, March 5. If the bills pass favorably through the committees, the updated credit will spur economic activity, as each tax credit dollar used generates over $8 in economic output.
The Heritage Structure Rehabilitation Tax Credit has many environmental benefits. By redeveloping older cities, Maryland can give people more transit options, reduce its greenhouse gas contributions, and reduce run-off pollution going into the Bay.
“The committees in the general assembly have the ability to recommend a tax credit that will promote an environmentally friendly form of development,” added Sherling, “By investing in these historic areas, we’re saving our forests and farms across Maryland from overdevelopment.”
Additionally, the Maryland Heritage Structure Rehabilitation Tax Credit will provide bonuses to redevelopment that is certified as LEED Gold or higher. This will significantly reduce the energy use of the buildings and their corresponding greenhouse gas contributions. “The benefits of this tax credit are numerous,” concluded Sherling, “the General Assembly needs to reauthorize this smart growth tool.”
