Tax Credits & Incentives

Tax credits stimulate growth in key areas of the economy. Thus, tax credits are a mutual win for a county seeking job growth and companies in target areas or industries. We offer the following tax credits for businesses seeking to startup, expand, or relocate within the county:

Opportunity Zones

This new initiative provides federal income tax benefits for investments in designated communities for the next 10 years. The program was designed to stimulate business investments and improve the quality of life for residents. Taxes on capital gains are deferred, reduced, or even eliminated when invested in opportunity zones. Charles County has designations in three areas:

  1. An area west of US 301 in Waldorf – the southbound side – from the county line to Berry Road, encompassing the proposed Waldorf Station (Greenberg Gibbons) development;
  2. The Town of Indian Head;
  3. An area east of US 301 in Waldorf – the northbound side – from the County line to Berry Road, encompassing the Waldorf Urban Redevelopment Corridor.

Learn about the specifics of the initiative by clicking here. Or, visit the website of the Maryland Department of Housing and Community Development for more information.

Commercial Real Property Improvement and Rehabilitation Tax Credit

The Commercial Real Property Improvement & Rehabilitation Tax Credit defers and phases in new real estate property taxes that result from increased property value due to property renovations.  To qualify for the credit, a property must be in a Priority Funding Area (PFA), which includes most of the developed areas of the County.  An interactive map is available through the Maryland Department of Planning.  Commercial property owners must apply for the credit through the Economic Development Department.  Once approved, the credit will be applied to new taxes generated by the increase in property value, as determined by property assessments from the State of Maryland. 

The increase in the assessed value must be greater than $100,000 and not exceed $3,000,000. The credit will be 100% in the first year, 80% in year two, 60% in year three, 40% in year four, and 20% in year five.

Download Commercial Real Property Improvement & Rehabilitation Tax Credit application

Recordation Tax Credit

Eligible businesses may be considered for full or partial waiver of recordation tax. The business must maintain at least 10 or more new, permanent full-time positions or make a capital investment sufficient to yield a substantial increase in annual commercial tax revenue. New, relocating, or expanding businesses are eligible for consideration. Creation of jobs paying above-average Charles County wages and/or significant capital investment required.

Maryland Financial Incentives for Businesses

Check this list of business funding programs from the State of Maryland.

Incentives for Key Industries

Manufacturing Equipment Tax Exemption
This incentive declares manufacturing equipment and inventory exempt from personal property taxes in Charles County.

HUBZone

Operated by the Small Business Association, the HUBZones program assists small companies that operate and employ people in “Historically Underutilized Business (HUB)Zones”. Businesses who partake in the HUBZone program are eligible to compete for the program’s set-aside contracts. HUBZone-certified businesses also get a 10 percent price evaluation preference in full and open contract competitions.

In Charles County, the Town of Indian Head and a part of Waldorf qualify for this program.

Full qualification criteria can be found in Title 13 Part 126 Subpart B of the Code of Federal Regulations (CFR). Or, take the preliminary qualification assessment at the SBA’s Certify website.

Learn more about HUBZones by clicking here.

 

 

 

Get in the Zone: Charles County has Opportunity Zones in three key census tracks.

 

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