Maryland is one of the first states in the country to develop Arts and Entertainment Districts on a statewide basis as a way to stimulate the economy and improve quality of life. Hagerstown’s Arts and Entertainment District was one of the first designated in Maryland. Hagerstown's Arts & Entertainment District Map

Incentives Offered through the Arts and Entertainment District

Real Property Tax Credit

The City and County agreed to provide a 50% property tax credit for 10 years on the increase in assessment, resulting from a renovation project to create artist housing or space for Arts and Entertainment enterprises. The tax credit shall apply only to that portion of the building occupied by the qualifying residing artist or arts and entertainment enterprise. The Arts and Entertainment District property tax credit shall not be granted for properties utilizing the Enterprise Zone property tax credit.

Admissions & Amusement Tax Exemption Program

Enterprises dedicated to visual or performing arts within the Arts and Entertainment District are exempt from the State of Maryland's Admissions and Amusement Tax collection. Businesses must qualify for the exemption and notify the State of Maryland's Comptroller's Office to be eligible.

Enterprises interested in participating in the Admissions & Amusement Tax Exemption Program should register with the Maryland State Comptroller’s Office using the Comptroller of Maryland Combined Registration Application (CRA). Click here for Form CRA.

Income Tax Subtraction Modification Program

Qualified residing artists who live in Maryland and sell artistic work in any of the State's A&E Districts are eligible for the income tax subtraction modification on income derived from their in-district sales (for performing artists, this includes income derived from performances in a district; for all qualified residing artists, this includes internet sales originating in a district.)

Eligible artists should submit Maryland State Tax Form 502AE when they file their state income tax returns. Additional eligibility information is available on the Maryland State Arts Council site here.

The A&E District programs are available because the City has been designated a State of Maryland Arts and Entertainment District through the Maryland Department of Business and Economic Development.