Arts & Entertainment District
Arts and Entertainment (A&E) District Tax Credit
The Arts and Entertainment (A&E) District Tax Credit encourages redevelopment and investment in designated Arts and Entertainment Districts within Prince George's County by providing a property tax credit for qualifying building improvements.
The credit supports the creation and preservation of spaces for qualified residing artists and arts and entertainment enterprises by reducing the County property taxes associated with eligible improvements.
Credit Amount
The credit applies to the County portion of the real property tax attributable to the increase in assessed value resulting from eligible improvements.
The tax credit is available on a 10-year declining schedule:
| Tax Year | Credit Amount |
|---|---|
| Years 1–2 | 100% |
| Years 3–4 | 80% |
| Years 5–6 | 60% |
| Years 7–8 | 40% |
| Years 9–10 | 20% |
Note: The credit applies only to the portion of the building occupied and used by a qualified residing artist or arts and entertainment enterprise.
Eligibility Requirements
To qualify for the Arts and Entertainment District Tax Credit, all of the following requirements must be met:
- The property must be located entirely within a State-designated Arts and Entertainment District in Prince George's County.
- The building must be classified as a commercial, industrial, or manufacturing property.
- The building must be newly constructed, renovated, or retrofitted for use by:
- A qualified residing artist; or
- A qualified arts and entertainment enterprise.
- The eligible portion of the property must be dedicated to qualifying arts-related uses.
Eligible Properties
Eligible properties include commercial, industrial, or manufacturing buildings located within a designated Arts and Entertainment District that are improved to provide:
- Artist housing;
- Artist studio space;
- Art galleries;
- Performance venues;
- Creative workspaces; or
- Other qualifying arts and entertainment uses.
Eligible Districts
The credit is available only for properties located within a State-designated Arts and Entertainment District in Prince George's County, including portions of:
- Hyattsville
- North Brentwood
- Brentwood
- Mount Rainier
The district generally follows the Route 1 (Baltimore Avenue) and Route 1A (Rhode Island Avenue) corridors.
How the Credit Is Calculated
The credit applies only to the increase in assessed value resulting from eligible construction or renovation.
The calculation process includes:
- The Maryland Department of Assessments and Taxation (SDAT) establishes the property's assessment before construction or renovation.
- After the improvements are completed, SDAT determines the property's new assessed value.
- The County calculates the increase in assessment attributable to the eligible improvements.
- The graduated tax credit is applied to the County property tax on the eligible assessment increase according to the 10-year schedule.
Important Information
- The credit applies only to the increased assessment resulting from eligible improvements.
- Only the portion of the building occupied by a qualified artist or arts and entertainment enterprise is eligible.
- This credit cannot be combined with certain other local property tax incentives, including the Enterprise Zone Property Tax Credit, on the same eligible portion of the property.
Questions?
For additional information, please contact the Treasury Division at 301-952-4030 or email prop_tax_credits@co.pg.md.us
Authority
County Bill CB-10-2010