Westminster Historic District Commission
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Tax Credits for Historic Rehabilitation

The City of Westminster offers two tax credits for the rehabilitation of qualified historic structures.  Provided the work meets eligibility criteria, property owners can receive:

• 10% of the qualified expenses for the restoration and preservation of an eligible historic property, applied to the local real property tax liability of the property, or 5% of the qualified expenses for the construction of an architecturally compatible new structure on an eligible historic property,

          and

• The difference between the local real property tax, but for the tax credit, would be payable on the assessed value of an eligible historic property after the completion of eligible work; and the local real property tax that would be payable on the assessed value of the property if the eligible work was not done, for a period of 10 years.

Click here for a printable application for the City’s Historic Rehabilitation Tax Credits.      
    

► For more information, see the frequently asked questions below
     or contact Tim Rogers at (410) 848 - 4628 or email

►More help is available!  Find out about State and Federal tax credits!

Frequently asked Questions about the City's Historic Tax Credits program

Is my property eligible for the local tax credits?

            A property is eligible for the tax credits if it is located within the City’s Historic District Zone, or listed individually in the National Register of Historic Places, or identified as a contributing property located within the City’s National Register District.  The City’s National Register District includes Downtown Westminster and most of Old Town Westminster.  For a determination of eligibility for a property, please feel free to contact Tim Rogers, Secretary to the Historic District Commission at (410) 848 – 4628.

What projects are eligible for the local tax credits?

            Many rehabilitation and preservation projects are eligible for the tax credits.  Examples include the repair or in-kind replacement of exterior features of a structure; work that is necessary to maintain the physical integrity of a structure; routine maintenance of a structure; and major interior rehabilitation, including heating, plumbing, electrical, and related work.  All eligible work shall conform to the Secretary of the Interior’s Standards for Rehabilitation to the extent possible.

            Landscape maintenance and new landscape plantings are not eligible for the tax credits.

            The Historic District Commission must certify all work as eligible before the work has begun.  For this reason, a preliminary application must be received and approved by the Commission prior to starting any work that is to be included in the tax credit.

What is the process?

            First, you should verify that your property is eligible for the tax credits (see above).  Application for the tax credits should be made once you have a clear understanding of the scope and cost of the project, and always before work begins.  You should be ready to fill out the application once you have received an estimate from a contractor, although a contractor’s estimate is not required for application.  The Historic District Commission will review your application and determine what elements of the project are eligible for the credits.

            The work may begin once you have received preliminary approval from the Commission.  Upon project completion, submit an application for final approval with documentation showing the breakdown of expenses, and that the work was done in accordance with the preliminary approval.  The Commission will review the application and, if satisfied, will grant final approval with a determination of eligible work and qualified expenses.  The applicant may then request that the Finance Department apply the tax credits to the property.

Must a licensed contractor perform the work to retain eligibility?

            Work must be completed in accordance with the County’s fire, electrical, plumbing, and related building codes as amended by the City.  Work that does not require a licensed contractor under these codes may be completed by an individual other than a licensed contractor and still retain eligibility.

            Labor costs are considered qualified expenses if a licensed contractor performs the work; otherwise, only materials costs are eligible.

Do I have to spend a certain amount of money to be eligible for the tax credits?

            Qualified expenses must be $5,000.00 or greater over a twenty-four month period to be eligible for the rehabilitation tax credit.  Qualified expenses must be $25,000.00 or more to be eligible for the tax assessment credit.  Several projects for a structure may be combined on one application to meet the minimum expense provided all work is completed within two years.

Do the tax credits place restrictions on what I can do with my property?

            While your tax credit is in effect(i.e., while you are receiving the benefit), the approved work must not be changed without the express written approval of the Commission.  Any unused tax credit will lapse in the event that approved work is modified or demolished without Commission approval. 

            The tax credits do not place any permanent restrictions on the property.