Revitalization Tax Credit
Revitalization/Redevelopment tax credits encourage redevelopment and investment in inner-beltway communities of Prince George’s County. The credits are available in all census tracts inside the Beltway where the median household income does not exceed the County’s median. Eligible improvements to real property located within these districts shall be allowed a tax credit on County real property taxes.
Eligible improvements include:
- construction, reconstruction, or extension of non-residential structures;
- reconstruction or extension of existing residential structures;
- construction or reconstruction of new single-family residential structures that are built on lots on which a residential structure has been razed or demolished within the prior five years, or on vacant lots between adjacent lots with single-family residential structures;
- new construction in developments of less than ten one-family dwellings;
- new construction in developments of ten or more one-family dwellings, or new multi-family units, may be eligible for the tax credit upon resolution of the County Council.
For the first tax year following the year in which the improvements are completed and assessed, non-residential improvements receive a tax credit for 100% of the amount of the County property tax imposed on the increased assessment. The tax credit is reduced to 80% in the second tax year, 60% in the third year, 40% in the fourth year, and 20% in the fifth year.
Residential improvements for the first tax year following the year in which the improvements are completed and assessed, receive a tax credit of 100% of the amount of the County property tax imposed on the increased assessment. The tax credit is reduced to 66% in the second tax year, and 33% in the third year. The maximum amount of eligible residential improvements is $200,000 per dwelling unit.