Residential Tax Credits
In recognition of the need to encourage property owners to invest in Hagerstown’s older, urban neighborhoods and make improvements to residential properties in these neighborhoods, the City of Hagerstown and Washington County adopted two new tax incentive programs in 2006: (1) Residential Rehabilitation; and (2) Conversion of Multi-Family to Single-Family Residences. This brochure summarizes the two local tax incentive programs that are available in the City of Hagerstown for rehabilitation of residential properties. For the purposes of these tax incentive programs, rehabilitation is defined as alterations and/or additions to existing buildings. The residential property must be located in Hagerstown’s Community Legacy Area.
Community Legacy Area Map
Tax Incentives
On both programs, a tax credit is allowed equal to the increase in assessment of the municipal property tax and county property tax resulting from the improvements to the property. The credit shall not exceed the amount of the cost of the qualifying improvements. The credit shall commence on July 1st of the tax year following completion of the rehabilitation project and shall run with the real estate for a period of five consecutive years. Eligibility for the tax credit is conditioned upon the property owner submitting to the City’s Planning Office an annual self-certification application to ensure continued compliance with the program’s eligibility requirements.
Residential Tax Credit Eligibility and Application Process
Tax Credit Application Forms
For more information, contact the Planning Office at e-mail or by telephone at (301) 790-4163, extension 138.
