Tax paying property owners may apply for a property tax credit equal to 25 percent of the properly documented expenditures incurred for exterior work that contributes to the restoration or preservation of a structure designated by the City of Frederick (Historic Preservation Overlay).
In order to be eligible, the project must have prior HPC approval and a permit unless the project is only for eligible work on the Minor Rehabilitation List. Not all work that receives HPC approval is necessarily eligible for the tax credit. In order to qualify, minimum eligible expenditures must total at least $500. The maximum total credit for any given year is $7,500.
Applications are due on April 1st following the calendar year in which the expenditures were incurred and are applied to next year’s tax bill. If the amount of the credit exceeds the tax liability, the amount can be carried over for up to five years. The credit is transferrable if the property is sold before the credit is fully claimed. The City may recapture the credit if the structure is subsequently demolished.
ELIGIBLE: Examples of eligible work include, but are not limited to:
Repointing
Repairing windows, doors, sills and lintels
Repairing or replacing roofs in-kind or with a historically appropriate material
Exterior painting
Replacing deteriorated trim, siding or ornament in-kind
Restoring or repairing an architectural feature, such as a porch or shutters, based on documentary or physical evidence
Installing storm windows or storm doors
Replacing vinyl or other modern windows with historically appropriate windows based on documentary or physical evidence
Replacing modern metal or hollow doors with historically appropriate doors based on documentary or physical evidence
Gutters and downspout repair or replacement
Uncovering and repairing original siding
INELIGIBLE:
Interior work
New construction or an addition
New building features or site features not based on documentary evidence
The installation or repair of mechanical equipment
The installation or repair of electrical or plumbing systems
The installation or repair of utilities (not including work on the Minor Rehabilitation List)
The installation or repair of solar or geothermal systems
Plantings or tree removal
Professional services
Value of property owners’ time
Permit fees
Work completed without prior HPC approval and a permit unless on the Minor Rehabilitation List.
Application forms and details are available in the Planning Department or online here.
Instructions on how to apply can be found at here. You may also call 301-600-1499 for more information.