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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0511*
HOUSE BILL 511
Q3, C8 6lr1870
By: Delegates Edelson, Clippinger, and Lewis
Introduced and read first time: January 27, 2026
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Catalytic Revitalization Project Tax Credit – Alterations 2
FOR the purpose of altering the definition of “catalytic revitalization project”; altering 3
eligibility for and the amount of a certain credit against the S tate income tax that 4
certain persons may claim for certain construction and rehabilitation costs for 5
certain catalytic revitalization projects in the State ; altering certain limitations on 6
the Secretary of Housing and Community Development to accept certain applications 7
and award certain tax credit certificates; requiring the Department of Housing and 8
Community Development to publish certain information and guidance; requiring the 9
Secretary to adopt certain regulations; and generally relating to the c atalytic 10
revitalization project tax credit. 11
BY repealing and reenacting, with amendments, 12
Article – Housing and Community Development 13
Section 6–901, 6–902(a) and (c), 6–903(a), (b), and (f)(1), and 6–904 14
Annotated Code of Maryland 15
(2019 Replacement Volume and 2025 Supplement) 16
BY adding to 17
Article – Housing and Community Development 18
Section 6–903(g) 19
Annotated Code of Maryland 20
(2019 Replacement Volume and 2025 Supplement) 21
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22
That the Laws of Maryland read as follows: 23
Article – Housing and Community Development 24
6–901. 25
2 HOUSE BILL 511
In this subtitle, “catalytic revitalization project” means the substantial rehabilitation 1
of a HISTORIC property in the State: 2
(1) that: 3
(I) was formerly owned by the State or the federal government; OR 4
(II) IS A SUBSTANTIALLY VACANT OR FUNCTIONALLY 5
OBSOLESCENT PRIVATELY OWNED COMMERCIAL PROPERTY; 6
(2) the rehabilitation of which will foster economic, housing, and 7
community development within: 8
(I) the community in which the property is located; 9
(II) AN ARTS AND ENTERTAINMENT DISTRICT DESIGNATED 10
UNDER TITLE 4, SUBTITLE 7 OF THE ECONOMIC DEVELOPMENT ARTICLE; 11
(III) A MAIN STREET MARYLAND COMMUNITY DE SIGNATED BY 12
THE DEPARTMENT; OR 13
(IV) A PRIORITY FUNDING ARE A DESIGNATED UNDER TITLE 5, 14
SUBTITLE 7B OF THE STATE FINANCE AND PROCUREMENT ARTICLE; and 15
(3) that is out of service and [was formerly used as a college or university, 16
K–12 school, hospital, mental health facility, or military facili ty or installation ] HAS AT 17
LEAST 250,000 SQUARE FEET OF EXIST ING IMPROVEMENTS AND A MINIMUM 18
INTENDED INVESTMENT OF $50,000,000. 19
6–902. 20
(a) An individual, a nonprofit organization, or a business entity may claim a tax 21
credit in an amount equal to: 22
(1) for a project issued a single tax credit certificate on completion, [20%] 23
25% of the amount stated in the final tax credit certificate issued by the Secretary under § 24
6–903 of this subtitle for [5] 4 consecutive taxable years beginning with the taxable ye ar 25
in which a final tax credit certificate is issued; or 26
(2) for a phased project issued a tax credit certificate on completion of a 27
phase, 100% of the amount stated in the final tax credit certificate issued by the Secretary 28
under § 6–903 of this subtitle for the taxable year in which the final tax credit certificate is 29
issued. 30
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(c) The Secretary may issue multiple final tax credit certificates for a project that 1
is issued an initial tax certificate under this section if: 2
(1) the project has been determined by the Secretary to be in phases; 3
(2) a phase of the project has been completed; 4
(3) a final tax credit certificate is not issued for more than [20%] 25% of 5
the project’s eligible expenses to date; and 6
(4) a final tax credit certificate is not issued that would exceed the 7
aggregated limit of a project’s credit under § 6–903(b) of this subtitle. 8
6–903. 9
(a) (1) Subject to the limitations of paragraph (2) of this subsection and 10
subsection (b) of this section, on application by an individu al, a nonprofit organization, or 11
a business entity, the Secretary shall issue: 12
(i) an initial tax credit certificate in an amount equal to [20%] 25% 13
of the individual’s, nonprofit organization’s, or business entity’s estimated new construction 14
costs and rehabilitation costs for the project; and 15
(ii) on completion of the catalytic revitalization project or a phase of 16
the catalytic revitalization project, a final tax credit certificate in an amount equal to [20%] 17
25% of the individual’s, nonprofit org anization’s, or business entity’s actual new 18
construction costs and rehabilitation costs for the project. 19
(2) For purposes of calculating the credit authorized under paragraph (1) 20
of this subsection, new construction costs: 21
(i) must be related to th e construction of new structures that 22
connect, expand, or integrate the existing structures to be rehabilitated; and 23
(ii) may not exceed 50% of the total costs of the catalytic 24
revitalization project. 25
(b) (1) Except as provided in paragraph [(2)(ii)] (3)(II) of this subsection, the 26
Secretary may not: 27
(i) accept applications and award initial credit certificates for 28
catalytic revitalization projects more than once within a [2–year] 1–YEAR period; or 29
(ii) issue tax credit certificates for credit amounts in the aggregate 30
totaling more than [$15,000,000] $35,000,000 within a [2–year] 1–YEAR period. 31
4 HOUSE BILL 511
(2) THE DEPARTMENT SHALL ADJU ST THE MAXIMUM AMOUNT FOR 1
TAX CREDIT CERTIFICATES IN THE AGGREGATE SPECIFIED IN PARAGRAPH (1)(II) OF 2
THIS SUBSECTION EVER Y YEAR , BEGINNING JULY 1, 2027, TO REFLECT ANY 3
AGGREGATE INCREASE I N THE CONSUMER PRICE INDEX FOR ALL URBAN 4
CONSUMERS (CPI–U) FOR THE WASHINGTON METROPOLITAN AREA, OR ANY 5
SUCCESSOR INDEX, FOR THE PREVIOUS YEAR. 6
[(2)] (3) (i) The Secretary may revoke an initial credit certificate on a 7
finding by the Secretary that the recipient is not in compliance with the initial credit 8
certificate or an agreement with the Department regarding the initial credit certificate. 9
(ii) If the Secretary revokes an initial credit certificate under 10
subparagraph (i) of this paragraph, the Secretary may award an initial credit certificate to 11
another applicant, provided that the award does not exceed the amount of the revoked 12
initial credit certificate. 13
(f) (1) The amount of the tax credit stated in the final tax credit certificate 14
that is allowed, but not claimed, under this subtitle may be transferred, by written 15
instrument, in whole or in part, to any individual, nonprofit organizatio n, or business 16
entity, INCLUDING A FINANCIAL INSTITUTION FOR PROJECT FINANCING PURPOSES. 17
(G) THE DEPARTMENT SHALL: 18
(1) ON OR BEFORE JULY 1, 2026, AND EACH JULY 1 THEREAFTER, 19
PUBLISH ON THE DEPARTMENT’S WEBSITE THE AVAILABLE CREDIT AMOUNT AND 20
DETAILS ON THE PROCESS TO APPLY FOR THE ISSUANCE OF TAX CREDIT 21
CERTIFICATES UNDER THIS SUBTITLE; AND 22
(2) ISSUE GUIDANCE ON A TIMELINE FOR THE ISS UANCE OF INITIAL 23
AND FINAL TAX CREDIT CERTIFICATES FOR APPLICANTS WHO W ISH TO UTILIZE 24
CREDIT CERTIFICATES TO SECURE PROJECT FINANCING. 25
6–904. 26
The Secretary, in consultation with the Department of Commerce, shall adopt 27
regulations to carry out the provisions of this subtitle, including regulations that: 28
(1) establish procedures and standards for certifyi ng new construction 29
costs and rehabilitation costs under this subtitle , INCLUDING COST –CERTIFICATION 30
REQUIREMENTS FOR ANY NEW CONSTRUCTION OR SITE IMPROVEMENT COSTS THAT 31
ARE INTEGRAL TO THE REHABILITATION; 32
(2) establish an application process for the is suance of tax credit 33
certificates under this subtitle, with an emphasis on applications that: 34
HOUSE BILL 511 5
(I) promote affordable housing , ECONOMIC GROWTH , OR JOB 1
CREATION; AND 2
(II) HAVE A CATALYTIC IMP ACT ON ADVANCING THE 3
PLACE–BASED ECONOMIC AND C OMMUNITY DEVELOPMENT GOALS OF A 4
DESIGNATED MAIN STREET MARYLAND COMMUNITY OR ARTS AND 5
ENTERTAINMENT DISTRICT; and 6
(3) establish procedures for the approval of project phases for tax credit 7
certificates issued under this subtitle. 8
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 9
1, 2026 , and shall be applicable to all initial credit certificates issue d for the catalytic 10
revitalization project tax credit on or after July 1, 2026. 11