Washington County - Property Tax Credit - Economic Development Projects

Washington County businesses get property tax relief

Effective June 1, 2025, the law authorizes Washington County to grant business property tax credits by local law. It applies to taxable years beginning after June 30, 2025. Credits cover county property tax on qualifying commercial or industrial property that businesses own or lease. Businesses must conduct business in Maryland and be subject to state individual income, corporate income, or insurance premiums tax. Existing county businesses qualify by obtaining and occupying at least 1,500 square feet of new, renovated, or expanded space. They must also add at least 5 new permanent full-time jobs within 12 months. New county businesses must obtain and occupy at least 2,500 square feet and add at least 25 such jobs within 24 months. Both routes provide credits of 55% in years 1–2, 40% in years 3–4, and 25% in years 5–6. Alternatively, new or existing businesses qualify by investing at least $20 million in county capital improvements and creating 200 such jobs. Eligible investments include buying newly built premises, construction, renovation, or leasing previously unoccupied premises. This route credits 75% in years 1–5, then 70%, 65%, 60%, 55%, 50%, 45%, 40%, 35%, 30%, and 25% in years 6–15, respectively. The credit is zero starting in year 16. These percentages apply to county tax on the assessed value of the qualifying premises, not the business's entire tax bill. Before qualifying, businesses must give the county written notice stating their intent to claim the credit and expected qualification date. Full-time jobs require at least 840 work hours in 24 weeks. Qualifying jobs must be new, indefinite, located in the county, tied to the facility project, and filled for at least 12 months. Jobs from employment transfers, ownership changes, mergers, consolidations, restructuring, or contract shifts do not count. Transfer exclusions also cover affiliates linked by at least 80% ownership. Where applicable, landlords must reduce rent or lease payments by the credit amount. The county must set specific eligibility rules, additional limits, and implementation details by local law.