County Historic Preservation Tax Credit
To encourage the restoration and preservation of privately-owned structures designated on the Master Plan for Historic Preservation either individually or within a historic district, the Montgomery County Council in 1984 passed legislation providing for a tax credit against County real property taxes (Chapter 52, Article VI). In summary, eligible work includes repairs, restoration, or preservation of exterior features of designated structures. Examples of eligible projects would include (but not be limited to) painting, repairing roofs or windows or replacing them in-kind, repairing architectural trim or ornament, uncovering and repairing original siding, re-pointing brick or stone foundations or chimneys, restoring a documented feature such as a dormer or porch that was previously altered or removed, and repairing and maintaining outbuildings such as barns and garages. New construction and interior work are expenditures that are not eligible.
The tax credit is 10% of documented expenses for exterior maintenance, restoration or preservation work. The work must be certified eligible by the Historic Preservation Commission (HPC). The tax credit is allowed for the tax year immediately following the calandar year in which the work or any distinct portion thereof is completed.
NOTE: The tax year is January 1-December 31, and the application deadline is always April 1 of the following year.
In other words, tax credit applications are reviewed by the HPC in the spring of every year and the approved tax credit is applied to tax bills received by property owners that summer. Any unused portion of this tax credit may be carried forward for as many as five years. If the property were subsequently removed from the Master Plan for Historic Preservation, any unused portion of the tax credit would immediately lapse. A property not listed on the Master Plan for Historic Preservation at the time the work is undertaken is not eligible for the preservation tax credit.
The Winter 2007 issue of our newsletter, The Preservationist, included a front-page article on historic building maintenance that may be eligible for the historic tax credit.
- Instructions for Filling a County Tax Credit Application
- Frequently Asked Question (FAQ)
- Tax Credit Application Instructions (new County Tax Credit Application coming soon.)
- State and Federal Tax Credit Programs
Please note that unlike the County tax credit application, the State application is due in advance of the work.
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