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*hb1279*
HOUSE BILL 1279
Q3, C8 6lr3132
By: Delegates Ruff, Acevero, Addison, Amprey, Conaway, Kaufman, Lopez,
Martinez, Phillips, Solomon, Stinnett, and Wolek
Introduced and read first time: February 12, 2026
Assigned to: Ways and Means
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 4, 2026
CHAPTER ______
AN ACT concerning 1
Catalytic Revitalization Project Tax Credit – Alterations 2
FOR the purpose of altering eligibility for and the manner for claiming a certain credit 3
against the State income tax that certain persons may claim for certain construction 4
and rehabilitation c osts for certain catalytic revitalization projects in the State; 5
altering certain limitations on the Secretary of Housing and Community 6
Development to accept certain applications and award certain tax credit certificates 7
adding applications promoting certain workforce housing to the types of applications 8
that certain regulations governing the application process for the catalytic 9
revitalization project tax credit must emphasize ; and generally relating to the 10
catalytic revitalization project tax credit. 11
BY repealing and reenacting, without amendments, 12
Article – Housing and Community Development 13
Section 4–1801(l) and 6–903(a) 14
Annotated Code of Maryland 15
(2019 Replacement Volume and 2025 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Housing and Community Development 18
Section 6–901, 6–902, and 6–903(b) 6–901 and 6–904 19
Annotated Code of Maryland 20
(2019 Replacement Volume and 2025 Supplement) 21
2 HOUSE BILL 1279
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Housing and Community Development 3
4–1801. 4
(l) “Workforce housing” means: 5
(1) rental housing that is affordable for a household with an aggregate 6
annual income between 50% and 100% of the area median income; or 7
(2) homeownership housing that: 8
(i) except as provided in item (ii) of this item, is affordable to a 9
household with an aggregate annual income between 60% and 120% of the area median 10
income; or 11
(ii) in target areas that are recognized by the Secretary for purposes 12
of administering the Maryland Mortgage Program, is affordable to a household with an 13
aggregate annual income between 60% and 150% of the area median income. 14
6–901. 15
(A) In this subtitle[, “catalytic] THE FOLLOWING WORDS HAVE THE MEANINGS 16
INDICATED. 17
(B) “CATALYTIC revitalization project” means the substantial rehabilitation of a 18
property in the State: 19
(1) [that was formerly owned by the State or the federal government; 20
(2)] the rehabilitation of which will foster economic, housing, and 21
community development within the community in which the property is located; and 22
(2) (I) 1. A. THAT WAS FORMERLY OWNED BY THE FEDERAL 23
GOVERNMENT; OR 24
B. THAT WAS FORMERLY OR IS CURRENTLY OWNED B Y 25
THE STATE; AND 26
[(3)] 2. that is out of service and was formerly used as a college or 27
university, K–12 school, hospital, mental health facility, or military facility or installation; 28
OR 29
(II) THAT IS LOCATED: 30
HOUSE BILL 1279 3
1. WITHIN A TRANSIT –ORIENTED DEVELOPMENT OR A 1
SITE PENDING DESIGNATION AS A TRANSIT–ORIENTED DEVELOPMENT; 2
2. ON A PARCEL OF REAL PROPERTY SHARING A 3
BOUNDARY LINE WITH A SITE DESCRIBED UNDER ITEM 1 OF THIS ITEM; OR 4
3. WITHIN A ONE –HALF MILE RADIUS OF A PASSENGER 5
BOARDING AND ALIGHTING LOCATION OF A SUBWAY, LIGHT RAIL, OR RAILROAD. 6
(C) “TRANSIT–ORIENTED DEVELOPMENT” HAS THE MEANING STAT ED IN § 7
7–101 OF THE TRANSPORTATION ARTICLE. 8
(D) (C) “WORKFORCE HOUSING” HAS THE MEANING STATED IN § 4–1801 9
OF THIS ARTICLE. 10
(E) “WORKFORCE HOUSING PRO JECT” MEANS A PROJECT IN W HICH AT 11
LEAST 20% OF THE RESIDENTIAL U NITS PRODUCED ARE WO RKFORCE HOUSING 12
UNITS. 13
6–902. 14
(a) [An] EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION , AN 15
individual, a nonprofit organization, or a business entity may claim a tax credit in an 16
amount equal to: 17
(1) for a project issued a single tax credit certificate on completion, 20% of 18
the amount stated in the final tax credit certificate issued by the Secretary under § 6 –903 19
of this subtitle for 5 consecutive taxable years beginning with the taxable year in which a 20
final tax credit certificate is issued; or 21
(2) for a phased project issued a tax credit certificate on completion of a 22
phase, 100% of the amount stated in the final tax credit certificate issued by the Secretary 23
under § 6–903 of this subtitle for the taxable year in which the final tax credit certificate is 24
issued. 25
(b) IF THE PROJECT IS A WORKFORCE HOUSING PROJECT, AN INDIVIDUAL, 26
A NONPROFIT ORGANIZATION, OR A BUSINESS ENTITY MAY CLAIM THE TAX CREDIT 27
IN AN AMOUNT EQUAL TO: 28
(1) ONE–HALF OF THE AMOUNT STATED IN A F INAL TAX CREDIT 29
CERTIFICATE ISSUED BY THE SECRETARY UNDER § 6–903 OF THIS SUBTITLE THAT 30
IS ATTRIBUTABLE TO THE PRODUCTION OF THE WORKFORCE HOUSING UNITS IN THE 31
TAXABLE YEAR IN WHICH THE FINAL TAX CREDIT CERTIFICATE IS ISSUED AND THE 32
IMMEDIATELY FOLLOWING TAXABLE YEAR; AND 33
4 HOUSE BILL 1279
(2) ONE–THIRD OF THE AMOUNT STATED IN THE FINAL TAX CREDIT 1
CERTIFICATE ISSUED BY THE SECRETARY UNDER § 6–903 OF THIS SUBTITLE THAT 2
IS ATTRIBUTABLE TO PROJECT COSTS NOT ATTRIBUTABLE TO THE PRODUCTION OF 3
THE WORKFORCE HOUSING UNITS IN EACH OF THE 3 CONSECUTIVE TAXABLE YEARS 4
FOLLOWING THE TAXABLE YEARS DESCRIBED UNDER ITEM (1) OF THIS SUBSECTION. 5
(C) The Comptroller or the Secretary may not recapture a tax credit authorized 6
under this subtitle if: 7
(1) the catalytic revitalization project is transferred, in whole or in part, by 8
fee simple transfer of real property or by transfer of an ownership interest in the entity 9
that owns the project to a new owner; and 10
(2) the Secretary has issued a final tax credit certifica te for the catalytic 11
revitalization project under § 6–903 of this subtitle. 12
[(c)] (D) The Secretary may issue multiple final tax credit certificates for a 13
project that is issued an initial tax certificate under this section if: 14
(1) the project has been determined by the Secretary to be in phases; 15
(2) a phase of the project has been completed; 16
(3) a final tax credit certificate is not issued for more than 20% of the 17
project’s eligible expenses to date; and 18
(4) a final tax credit certificate is not issued that would exceed the 19
aggregated limit of a project’s credit under § 6–903(b) of this subtitle. 20
6–903. 21
(a) (1) Subject to the limitations of paragraph (2) of this subsection and 22
subsection (b) of this section, on application by an individual, a nonprofit organization, or 23
a business entity, the Secretary shall issue: 24
(i) an initial tax credit certificate in an amount equal to 20% of the 25
individual’s, nonprofit organization’s, or business entity’s estimated new construction costs 26
and rehabilitation costs for the project; and 27
(ii) on completion of the catalytic revitalization project or a phase of 28
the catalytic revitalization project, a final tax credit certificate in an amount equal to 20% 29
of the individual’s, nonprofit organization’s, or business entity’s actual new construction 30
costs and rehabilitation costs for the project. 31
HOUSE BILL 1279 5
(2) For purposes of calculating the credit authorized under paragraph (1) 1
of this subsection, new construction costs: 2
(i) must be related to the construction of new structures that 3
connect, expand, or integrate the existing structures to be rehabilitated; and 4
(ii) may not exceed 50% of the total costs of the catalytic 5
revitalization project. 6
(b) (1) Except as provided in paragraph [(2)(ii)] (3)(II) of this subsection, the 7
Secretary may not: 8
(i) accept applications and award initial credit certificates for 9
catalytic revitalization projects more than once [within a 2–year period] EACH YEAR; or 10
(ii) issue tax credit certificates for credit amounts in the aggregate 11
totaling more than [$15,000,000 within a 2–year period] $30,000,000 EACH YEAR. 12
(2) THE SECRETARY MAY NOT ACC EPT APPLICATIONS AND AWARD 13
INITIAL CREDIT CERTI FICATES FOR CATALYTI C REVITALIZATION PROJECTS THAT 14
ARE TRANSIT –ORIENTED DEVELOPMENT PROJECTS OR WORKFORC E HOUSING 15
PROJECTS UNLESS THE SECRETARY CERTIFIES THAT THE STATE HAS NOT YET MET 16
CONTINUED PRODUCTION TARGETS FOR HOUSING UNITS. 17
(3) (i) The Secretary may revoke an initial credit certificate on a finding 18
by the Secretary that the recipient is not in compliance with the initial credit certificate or 19
an agreement with the Department regarding the initial credit certificate. 20
(ii) If the Secretary revokes an initial credit certifica te under 21
subparagraph (i) of this paragraph, the Secretary may award an initial credit certificate to 22
another applicant, provided that the award does not exceed the amount of the revoked 23
initial credit certificate. 24
6–904. 25
The Secretary, in consultation with the Department of Commerce, shall adopt 26
regulations to carry out the provisions of this subtitle, including regulations that: 27
(1) establish procedures and standards for certifying new construction 28
costs and rehabilitation costs under this subtitle; 29
(2) establish an application process for the issuance of tax credit 30
certificates under this subtitle, with an emphasis on applications that promote affordable 31
housing OR WORKFORCE HOUSING; and 32
6 HOUSE BILL 1279
(3) establish procedures for the approval of project pha ses for tax credit 1
certificates issued under this subtitle. 2
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 3
1, 2026 , and shall be applicable to all initial credit certificates issued for the catalytic 4
revitalization project tax credit on or after July 1, 2026. 5
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.