City Approves Economic Development Incentive Programs

Frederick, MD – The Mayor and Board of Aldermen approved a package of economic development incentives aimed at job creation, revitalization and capital investment during the July 19^th Public Meeting at City Hall. The incentive package, which includes a combination of new and reauthorized property tax credit programs, provides the City’s Department of Economic Development with tools to encourage increased economic development activity.
 
The New Jobs and Enhanced New Jobs Property Tax Credit Program is a new program that provides an incentive to companies expanding both in physical space and in new job creation. Recognizing the importance both of small business as well as the attraction of major employers, the program is two-tiered. The first tier, or New Jobs Tax Credit, provides a property tax credit for businesses expanding by 5,000 square feet and adding 25 jobs over a two year period. The second tier of the program, the Enhanced New Jobs Tax Credit, targets large employers that occupy 250,000 square feet of newly-constructed space and employ more than 2,500 people.

Another new program is the Historic Preservation Property Rehabilitation Tax Credit Program, which provides the owners of designated historic properties with a tax credit on the real estate taxes for the rehabilitation of that historic building. The property tax credit is valued at 10% of the documented expenses for the exterior renovation of a historic property.   

In addition to the two new programs, the City made minor changes and reauthorized several existing property tax credit programs, including the Downtown Property Rehabilitation Tax Credit, the Golden Mile Rehabilitation Tax Credit Program, the Vacant Commercial Structures Rehabilitation Property Tax Credit, the Downtown Frederick Arts and Entertainment District Incentive Program, and the Brownfields Mitigation Property Tax Credit Program.

“The City strives to provide an environment that supports business growth, job creation and capital investment,” said Mayor Randy McClement. “These property tax credit programs are an important component to supporting continued economic development in our community, while also promoting the revitalization and rehabilitation of the City’s existing commercial property.”

“The goal of each program is to spur job creation, revitalization and capital reinvestment in the City of Frederick,” stated Richard Griffin, the City’s Director of Economic Development. “Property tax credits are one tool in economic development, and were recommended by the Blighted and Vacant Property Committee as an incentive for rehabilitating and filling vacant buildings.”

“We greatly appreciate the focus of the Mayor and Board on supporting existing businesses and attracting new firms to the City in these tough economic times,” said Matt Holbrook, Regional Partner at St. John’s Properties. “More than ever, businesses are seeking the greatest value in their decision to stay, relocate, and/or expand in any given locality. It’s critical for the City to stay competitive with all the other surrounding jurisdictions to ensure the long-term health of our business community.”

For more information on the City’s property tax credit programs, contact the Department of Economic Development at 301-600-6360.

 

DED is a full-service economic development department of the City of Frederick with the mission to create economic opportunity in the City through job creation, revitalization and reinvestment. To learn more visit www.businessinfrederick.com or call at 301-600-6360.