Property Tax - Credit for Commercial Buildings Rented to Small Businesses

Local property tax break for small business rentals

The law lets Baltimore City, counties, and towns create a local property tax credit for some commercial buildings. To qualify, you must own a commercial building rented or rent-to-own at fair market value to a small business. The building must be in one of these districts: a state Arts and Entertainment District, a Main Street Maryland community, a Baltimore Main Street area, or another local Business Improvement District. Each local government sets the credit amount, how long it lasts, extra eligibility rules, and how to apply. You can claim the credit only where a local law is in place. The law takes effect June 1, 2026 and applies to taxable years starting after June 30, 2026.