High Performance Tax Credit
High Performance Market-Rate Rental Housing Tax Credit
There are two types of High Performance Market-Rate Rental Housing Tax Credit – citywide 10- year tax credit and a 15-year credit for targeted areas. Both are aimed at encouraging development of new or converted market-rate apartments in the City. The tax credit is based on the increase in the value of real property due to improvements that were made.
Citywide 10-year tax credit:
- For newly constructed, wholly renovated, or converted from non-residential building
- Contains more than 20 residential units
- Construction/conversion costs exceeds $60,000 per unit
- Meets minimum of LEED Silver certification or the Baltimore City Green Building Code Standard Two Green Star rating
- Projects that are eligible for the City’s Historic (CHAP) Tax Credit are not eligible
15-year tax credit:
- For newly constructed or converted from a non-residential building
- Contains more than 50 residential units
- Construction/conversion costs exceeds $60,000 per unit
- Meets minimum of LEED Silver certification or the Baltimore City Green Building Code Standard Two Green Star rating
- Only eligible in targeted areas. Please visit CityView at this link to determine where the targeted areas are.
Below is the breakdown for both 10 and 15-year tax credits.
| Targeted 15-year | Citywide 10-year | |
|---|---|---|
| Year 1 | 100 percent | 80 percent |
| Year 2 | 100 percent | 80 percent |
| Year 3 | 80 percent | 80 percent |
| Year 4 | 80 percent | 80 percent |
| Year 5 | 80 percent | 80 percent |
| Year 6 | 70 percent | 70 percent |
| Year 7 | 60 percent | 60 percent |
| Year 8 | 50 percent | 50 percent |
| Year 9 | 50 percent | 40 percent |
| Year 10 | 50 percent | 30 percent |
| Year 11 | 40 percent | |
| Year 12 | 30 percent | |
| Year 13 | 20 percent | |
| Year 14 | 20 percent | |
| Year 15 | 20 percent |
For more information, please contact us at info@BaltimoreDevelopment.com. Application deadlines are rolling until Dec 31, 2017.