City Incentives

Below is a summary of locally-administered business incentives programs -- with a brief overview of the eligibility, benefits, & application process of each. These summaries are not comprehensive. For full details and requirements, please visit the links provided.

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--- Conditional Grants ----- 

GROW Grant Program 

  • Eligibility: Property improvement projects for City businesses with fewer than 25 full-time employees - AND - that are within the industries of advanced technology, manufacturing, life sciences, and IT, OR in a location that would provide a catalytic effect on the area immediately surrounding the business
  • Benefits: 1:1 matching grant up to maximum of $5,000 (and up to $10,000 match for graduates of FITCI)
  • Application: A meeting with the Department of Economic Development is required prior to application; application must then be submitted PRIOR to the commencement of the work 
  • Full program details 
  • Download Application 

Façade Improvement Grant Program

---- Administered by the Downtown Frederick Partnership, Golden Mile Alliance, & East Frederick Rising

  • Eligibility: Facade improvement projects to businesses located in one of three program areas
  • Benefits: 1:1 match on qualified exterior facade improvements up to $10,000 (*up to $23,500 in Golden Mile area)
  • Application: Contact administering organization directly for specific application procedure
  • Full program details: 

Mission: Interior 

---- Administered by the Downtown Frederick Partnership

  • Eligibility: Interior improvement projects to businesses located in Downtown Frederick
  • Benefits: 1:1 match on qualified interior improvements up to $5,000
  • Application: The application deadline normally falls in late Winter/early Spring. Contact Downtown Frederick Partnership at 301-698-8118 for application procedure details.
  • Full program details

Fire Suppression Program

---- Administered by the Downtown Frederick Partnership

  • Eligibility: the owner of a commercial, multi-family residential or mixed-use building must be seeking a new water connection of up to 4 inches to the City water main in an existing building > 50 years old
  • Benefits: Provides a grant of up to $15,000 for connection to City’s water main
  • Application: Contact Downtown Frederick Partnership at 301-698-8118 for application procedure details. 
  • Full program details


----- Tax Credits -----

Business Personal Property Tax : Phase Out 

  • Eligibility: The City business personal property tax is currently being phased out automatically for all businesses. Application for an additional exemption is available to manufacturing equipment acquired after January 1, 2015
  • Benefits: a 10-year tax phase out (provided through tax credits) of City's business property tax - to be completed 2025; manufacturing equipment acquired after January 1, 2015 may be eligible for a 100% tax credit
  • Application: For those seeking the manufacturing exemption - return the Application Form to the City's Department of Economic Development on or before October 1st each year 
  • Full program details
  • Download Application

Enterprise Zone

  • Eligibility: New and existing businesses located in designated Golden Mile area and with qualifying property improvements and/or job creation
  • Benefits: 
    • 10 year City/County tax credit based on increase in real property tax assessments (80% during the first 5 years, then decreasing 10% annually)
    • a one-time $1,000 state income tax credit for each qualified employee filling a new position
    • a three year state income tax credit for each qualified new economically disadvantaged employee ($3000 in Year One, $2000 in Year Two, $1000 in Year Three)
  • Application: To capture the property tax credit, capital projects must receive certification prior to the commencement of work. Income tax credits can be claimed within the year of the employee's hire. 
  • Application form
  • Full program details

Vacant Commercial Property 

  • Eligibility: Rehabilitation of a commercial property that has been vacant and marketed for at least 18 of the last 24 months prior to the start of rehabilitation
  • Benefit: 7 year property tax credit (City and County) on the increased assessed value of the property and calculated by the City's Exemption Schedule
  • Application: Following the completion of project work, submit application and all back-up documentation by April 30th for the tax credit to be applied on the following Fiscal Year’s bill 
  • Full program details
  • Download Application

New Jobs and Enhanced Jobs 

  • Eligibility: Construction of a 5,000 SF in new or expanded facilities AND the creation 25 net new full time jobs over a 24 month period
  • Benefits: 6 year tax credit based on the MSDAT assessed value of the new/expanded facility ---- 52% Credit (Year 1 and 2), 39% Credit (Year 3 and 4), 26% (Years 5 and 6)
  • Application: A LOI must be completed prior to the start of hiring and construction
  • Full program details 
  • Download Application 

High Performance Buildings 

  • Eligibility: New LEED certified (or equivalent) buildings 
  • Benefits: Tax credit granted as percentage of the City’s property tax, determined by the performance rating of the building
  • Application: Following the completion of project work, submit application and all back-up documentation by April 30th for the tax credit to be applied on the following Fiscal Year’s bill 
  • Full program details
  • Download Application

Commercial and Industrial Business 

  • Eligibility: Manufacturing business making new investments totaling at least $100,000 AND adding at least 3 net new full-time jobs.
  • Benefits: A 10 year tax credit of 20% - 100% (depending on investment/job creation size) of the incremental tax increase attributable to the new investment as determined by the MSDAT
  • Application: Contact the Department of Economic Development
  • Full program details


Historic Preservation Property Rehabilitation 

  • Eligibility: HPC approved rehabilitation work to the exterior of a building located with the Historic District Overlay  
  • Benefits: a property tax credit (City and County) for 25% of eligible work, up to a maximum of $7,500
  • Application: Applications are due by April 1st following the calendar year in which the expenditures were incurred
  • Full program details: call the Planning Department at 301-600-1499
  • Download Application


Downtown Property Rehabilitation 

  • Eligibility: Rehabilitation of property located in Downtown Frederick
  • Benefits: 7 year property tax credit (City and County) on the increased assessed value of the property and calculated by the City's Exemption Schedule
  • Application: Following the completion of project work, submit application and all back-up documentation by April 30th for the tax credit to be applied on the following Fiscal Year’s bill. Contact the Department of Economic Development for the application.
  • Full program details


Arts and Entertainment District 

  • Eligibility*: Qualifying Arts & Entertainment enterprises located in the A&E District
  • Benefits:
    • Property tax credit (City & County) based on the increase in assessed valuation on a portion of commercial property renovated/constructed for a certified arts use
    • State income tax subtraction modification for qualifying artists for income derived from their in-district sales 
    • Exemption from the Admissions and Amusement Tax

Brownfields Property 

  • Eligibility: Voluntary cleanup or corrective action plan of a qualified brownfields property
  • Benefit: 5 year tax credit (City) of 50% of the property tax attributable to the increase in the assessment of the qualified site, including improvements added to the site during the credit period
  • Application: Contact the Department of Economic Development. 
  • Full program details