Catalyzing investment in downtown Baltimore.
The Downtown RISE PILOT is a property tax incentive that supports new construction and rehabilitation of hotel, office, retail, multifamily residential, and mixed-use projects within the Downtown RISE District.
Authorized by the Maryland General Assembly and signed into law by Governor Wes Moore, the program allows qualifying projects to replace Baltimore City real property tax with a negotiated annual payment, reducing the upfront tax burden during critical development and stabilization phases.
Working in partnership with the Baltimore City Board of Estimates, BDC evaluates each project’s financial necessity and structures a payment in lieu of taxes (PILOT) agreement that provides long-term predictability for developers while ensuring the City continues to receive revenue.
Eligible economic development projects may qualify for a full or partial exemption from Baltimore City real property tax for the term of a negotiated payment in lieu of taxes (PILOT) agreement.
In place of standard property taxes, the owner pays an annually negotiated PILOT payment to Baltimore City, set through agreement with the Board of Estimates — giving developers a predictable, long-term cost basis for financing and underwriting.
The program is intended for owners of economic development projects — newly constructed or rehabilitated commercial or multifamily residential property — located within the Downtown RISE District.
To qualify, a project must:
- Be located within the Downtown RISE District (Ward 4, Precincts 1–3; Ward 22, Precincts 1–2; and Ward 21, Precinct 5)
- Include at least one of the following uses: hotel, office building, retail facility, multifamily residential facility, or a mixed-use facility combining these uses
- Demonstrate financial necessity for the exemption to the satisfaction of the Baltimore City Board of Estimates
- Apply to enter into a PILOT agreement with the City of Baltimore.
- BDC, as the City’s designated agency, manages the application process. BDC conducts an economic analysis of the project, including an assessment of financial necessity.
- The owner and the BDC negotiate and enter into a PILOT agreement specifying the annual payment due in lieu of property taxes.The agreement must be approved by BDC’s Board and the City’s Board of Estimates.
- The PILOT becomes effective once the owner has building permits issued and satisfies or waives all financing conditions required for construction.
- The agreement remains in place for its full negotiated term, with the project reported annually to the City Council and General Assembly.
Applicants should confirm project eligibility and financing readiness before submitting an application.Please email BDC at downtownrise@baltimoredevelopment.com to schedule a pre-application meeting.
Required documentation generally includes:
- Completed PILOT application
- Project scope confirming an eligible use (hotel, office, retail, multifamily residential, or mixed-use)
- Documentation supporting financial necessity for the exemption
- Issued building permits
- Proof that financing conditions for construction have been satisfied or waived
Important Information
To be eligible, owners must apply, have building permits issued, and satisfy or waive all financing conditions on or before June 30, 2036. The authorizing law remains in effect for 10 years from its April 2026 enactment; PILOT agreements entered into before that date remain in effect for their full negotiated term. Baltimore City reports annually to the City Council and General Assembly on projects awarded a PILOT agreement.
