Urban Discoveries Baltimore

In Annapolis last week, the Maryland state legislature discussed a proposal  (SB 258/HB 309) to extend the state’s historic tax credit program, and Baltimore has as much to gain by its passing as anywhere in the state. The Maryland Heritage Structure Rehabilitation Tax Credit has been on the books for ten years and is set to lapse in July of 2009. Since 2002, however, its impact on Baltimore has been significantly blunted by budgetary limitations as well as efforts to ensure the fair application of program resources throughout the state. The current proposal would restore the tax credit to something like its glory days.

Up for debate is whether the high cost–Governor O’Malley has suggested the allocation of $100 million over five years–will be offset by the program’s benefit to the state economy. Baltimore-based research group the Abell Foundation says yes. In a March 2 newsletter, the foundation dedicated seven pages to enumerating the program’s virtues. The report separately examined the impact of commercial and residential development, both of which are affected by the program, and concluded favorably in both cases. Among its claims: “Although not usually thought of as a jobs program, historic renovation is a labor-intensive process which creates jobs–especially valuable in an economic downturn such as we are experiencing.”

Recently the Sun has also come down on the side of the tax credit, if in slightly more touchy-feely language: “It promotes economic development, preserves historic buildings, encourages Smart Growth and promotes the greening of America.”

To date the tax credit has benefited such Baltimore projects as the American Can Complex in Canton and Tide Point in Locust Point, as well as numerous sites throughout Maryland.

What direction would you like to see the state and city take over the next five years?

Posted in: Development NewsNo Comments