Property Tax - Credit for Commercial Buildings Rented to Small Businesses

Budget Housing Small Business Taxes

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Senator Ferguson
Last action: 2026-05-26
Official status: Approved by the Governor - Chapter 603
Effective date: 2026-06-01

Plain English Breakdown

Checked against official source text during the last sync.

Property Tax Credit for Commercial Buildings Rented to Small Businesses

This law allows local governments in Maryland to provide tax credits to owners of commercial buildings that rent space to small businesses located in specific designated areas.

What This Bill Does

Allows the Mayor and City Council of Baltimore City or governing bodies of other counties or cities to create a property tax credit for commercial building owners who rent their spaces to small businesses.
Requires these rented commercial buildings to be in certain designated areas such as arts and entertainment districts, Main Street Maryland communities, or business improvement districts.
Gives local governments the power to set rules about how much the tax credit will be and how long it lasts.
Permits local authorities to establish additional criteria for businesses to qualify for this tax credit.

Who It Names or Affects

Owners of commercial buildings in designated areas who rent space to small businesses.
Small business owners renting spaces in these commercial buildings.
Local governments responsible for setting up and managing the tax credit program.

Terms To Know

Tax Credit: A reduction in the amount of taxes a person or company has to pay.
Designated Areas: Specific regions identified by local government as eligible for special tax benefits.

Limits and Unknowns

The exact details about how much the credit will be and who qualifies are left up to local governments.
It is not clear what specific criteria small businesses must meet to qualify for this tax benefit.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

373429/1

None

Favorable with Amendments { 373429/1 Adopted

Plain English: AMENDMENT TO SENATE BILL 767 (First Reading File Bill) On page 2, in line 2, strike “OR”; in line 4, after “DEVELOPMENT” insert “; (3) A BALTIMORE MAIN STREET AS DESIGNATED BY THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY; OR (4) ANY OTHER BUSINESS I MPROVEMENT DISTRICT AS DESIGNATED BY THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION”.

AMENDMENT TO SENATE BILL 767 (First Reading File Bill) On page 2, in line 2, strike “OR”; in line 4, after “DEVELOPMENT” insert “; (3) A BALTIMORE MAIN STREET AS DESIGNATED BY THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY; OR (4) ANY OTHER BUSINESS I MPROVEMENT DISTRICT AS DESIGNATED BY THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION”.
SB0767/373429/1 BY: Budget and Taxation Committee

Bill History

2026-05-26 Post Passage
Approved by the Governor - Chapter 603
2026-04-10 House
Favorable Report by Ways and Means
2026-04-02 House
Third Reading Passed (121-9)
2026-03-27 Senate
Returned Passed
2026-03-26 House
Favorable Adopted Second Reading Passed
2026-03-16 House
Hearing 3/24 at 1:00 p.m.
2026-03-05 Senate
Favorable with Amendments Report by Budget and Taxation
2026-02-27 House
Referred Ways and Means
2026-02-25 Senate
Third Reading Passed (41-1)
2026-02-23 Senate
Favorable with Amendments { 373429/1 Adopted
2026-02-23 Senate
Second Reading Passed with Amendments
2026-02-11 Senate
Hearing 3/03 at 1:30 p.m.
2026-02-06 Senate
First Reading Budget and Taxation
Maryland General Assembly
Text - First - Property Tax - Credit for Commercial Buildings Rented to Small Businesses
Maryland General Assembly
Vote - Senate - Committee - Budget and Taxation
Maryland General Assembly
Text - Third - Property Tax - Credit for Commercial Buildings Rented to Small Businesses
Maryland General Assembly
Vote - House - Committee - Ways and Means
Maryland General Assembly
Text - Chapter - Property Tax - Credit for Commercial Buildings Rented to Small Businesses

Official Summary Text

Authorizing the Mayor and City Council of Baltimore City and the governing body of a county or municipal corporation to grant, by law, a credit against the county or municipal corporation property tax imposed on a commercial building that is rented or rented to own at fair market value to a small business if the commercial building is located in a designated arts and entertainment district, a Main Street Maryland community, a designated Baltimore Main Street, or any other designated business improvement district.

Current Bill Text

Read the full stored bill text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0767*

SENATE BILL 767
Q1 6lr2428
CF HB 840
By: Senator Ferguson
Introduced and read first time: February 6, 2026
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 23, 2026

CHAPTER ______

AN ACT concerning 1

Property Tax – Credit for Commercial Buildings Rented to Small Businesses 2

FOR the purpose of authorizing the Mayor and City Council of Baltimore City and the 3
governing body of a county or municipal corporation to grant, by law, a credit against 4
the county or municipal corporation property tax imposed on a commercial building 5
that is rented to a small business if the commercial building is located in certain 6
areas; and generally relating to a property tax credit for commercial buildings rented 7
to small businesses. 8

BY adding to 9
Article – Tax – Property 10
Section 9–276 11
Annotated Code of Maryland 12
(2019 Replacement Volume and 2025 Supplement) 13

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
That the Laws of Maryland read as follows: 15

Article – Tax – Property 16

9–276. 17

(A) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 18
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY GRANT, BY LAW, 19
A TAX CREDIT AGAINST THE COUNTY OR MUNICIPAL CORPORATION PROPERTY TAX 20
2 SENATE BILL 767

IMPOSED ON A COMMERC IAL BUILDING THAT IS RENTED OR RENTED TO OWN AT 1
FAIR MARKET VALUE TO A SMALL BUSINESS IF THE COMMERCIAL BUILD ING IS 2
LOCATED IN: 3

(1) AN ARTS AND ENTERTAI NMENT DISTRICT DESIG NATED UNDER 4
TITLE 4, SUBTITLE 7 OF THE ECONOMIC DEVELOPMENT ARTICLE; OR 5

(2) A MAIN STREET MARYLAND COMMUNITY DE SIGNATED BY THE 6
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT; 7

(3) A BALTIMORE MAIN STREET AS DESIGNATED BY THE MAYOR AND 8
CITY COUNCIL OF BALTIMORE CITY; OR 9

(4) ANY OTHER BUSINESS I MPROVEMENT DISTRICT AS DESIGNATED 10
BY THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE GOVERNING BODY 11
OF A COUNTY OR MUNICIPAL CORPORATION. 12

(B) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 13
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY PROV IDE, BY 14
LAW, FOR: 15

(1) THE AMOUNT AND DURAT ION OF THE TAX CREDI T UND ER THIS 16
SECTION; 17

(2) ADDITIONAL ELIGIBILITY CRITERIA FOR THE TAX CREDIT UNDER 18
THIS SECTION; 19

(3) APPLICATION PROCEDUR ES FOR THE TAX CREDI T UNDER THIS 20
SECTION; AND 21

(4) ANY OTHER PROVISION NECESSARY TO CARRY O UT THE TAX 22
CREDIT UNDER THIS SECTION. 23

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 24
1, 2026, and shall be applicable to all taxable years beginning after June 30, 2026. 25