HB 539
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader
House Bill 539 (Delegate Buckel)
Ways and Means Budget and Taxation
Historic Revitalization Tax Credit - Certified Historic Structure and Single-
Family, Owner-Occupied Residence - Definitions
This bill alters the definition of a certified historic structure and single-family, owner-occupied
residence under the Historic Revitalization Tax Credit Program to include a structure that (1) is
located on property owned by the Department of Natural Resources (DNR) or one of its units;
(2) is occupied by a person under an agreement with DNR by which the person pays for
rehabilitation of the structure as a condition of occupancy; and (3) qualifies to be designated
under current law as a certified historic structure or is eligible to be listed in the National
Register of Historic Places, as determined by the Director of the Maryland Historical Trust
(MHT). The bill takes effect July 1, 2021, and applies to tax year 2021 and beyond.
Fiscal Summary
State Effect: General fund revenues may decrease by $35,000 in FY 2022 due to
additional residential tax credits claimed against the income tax. Future year revenue losses
reflect annualization and termination of the tax credit program. Special fund revenues
increase minimally in FY 2022 through 2025 due to additional administrative fees at MHT.
Expenditures are not affected.
(in dollars) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
GF Revenue ($35,000) ($70,000) ($70,000) ($35,000) $0
SF Revenue - - - - $0
Expenditure 0 0 0 0 0
Net Effect ($35,000) ($70,000) ($70,000) ($35,000) $0
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: None.
Small Business Effect: None.
 Analysis
Current Law:
Historic Revitalization Tax Credit Program
The Historic Revitalization Tax Credit Program provides tax credits for commercial, small
commercial, and owner-occupied residential property rehabilitations. The value of the
refundable credit is based on the type of rehabilitation undertaken and up to a percentage
of qualified rehabilitation expenditures.
Applying for the credit is a three-part process administered by MHT within the Maryland
Department of Planning. MHT must charge certification fees that are sufficient to pay the
cost of administering the State and federal historic tax credit.
MHT can award tax credits for the rehabilitation of a single-family, owner-occupied
residence through June 30, 2024. A single-family, owner-occupied residence is a structure
or a portion of a structure occupied by the owner and the owner’s immediate family as their
primary or secondary residence. A single-family, owner-occupied residence also includes
a residential unit in a cooperative project owned or leased to a cooperative housing
corporation and leased for exclusive occupancy to, and occupied by, a member of the
corporation and the member’s immediate family.
MHT evaluates the historic significance of a structure. A certified historic structure is a
structure that is (1) individually listed on the National Register of Historic Places;
(2) designated as a historic property under local law and determined to be eligible for listing
in the National Register; (3) located in a historic district listed on the National Register of
Historic Places or in a local historic district and determined to be eligible for listing on the
National Register of Historic Places and is certified to be contributing to the district or area;
or (4) located in a certified historic heritage area and certified by the Maryland Heritage
Areas Authority as contributing to the area.
A certified historic structure does not include a structure that is owned by the State, a
political division of the State, or the federal government.
Maryland Resident Curatorship – Department of Natural Resources
Established in 1982, the Maryland Resident Curatorship Program offers a person the right
to lifetime tenancy in a historic property in exchange for restoring and maintaining the
property and periodically sharing it with the public.
HB 539/ Page 2
State Fiscal Effect: The bill expands the definition of certified historic structure and
single-family, owner-occupied residence to include a structure that is owned by DNR and
occupied by a person under an agreement by which the person pays for rehabilitation of
the structure as a condition of occupancy.
DNR and MHT estimate that four structures will be rehabilitated each year and receive
$70,000 in tax credits. Given the bill’s effective date and June 30, 2024 termination of the
tax credit program, it is assumed that general fund revenues will decrease by $35,000 in
fiscal 2022, $70,000 annually in fiscal 2023 and 2024, and by $35,000 in fiscal 2025.
Special fund revenues increase minimally in fiscal 2022 through 2025 due to additional
certification fee revenue at MHT.
Additional Information
Prior Introductions: HB 640 of 2020, a similar bill, passed the House and was referred
to the Senate Budget and Taxation Committee, but no further action was taken.
Designated Cross File: SB 447 (Senator Edwards) - Budget and Taxation.
Information Source(s): Department of Natural Resources; Maryland Department of
Planning; Department of Legislative Services
Fiscal Note History: First Reader - February 1, 2021
an/jrb Third Reader - March 5, 2021
Analysis by: Robert J. Rehrmann Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 539/ Page 3