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Montgomery County Historic Tax Credit Program
The City of Rockville participates in Montgomery County’s preservation tax credit program. This program, established in 1979, Montgomery County Code, Chapter 52, Article VI, considers yearly exterior maintenance expenses, although structural repairs and pruning of trees away from a historic structure may also be included. Ordinary maintenance does not require prior HDC approval, but all other exterior work must have prior Historic District Commission (HDC) approval to be eligible.

BENEFIT: 25% of eligible expenditures are refunded from property taxes paid.

Montgomery County refunds 25% of the amount expended during the calendar year, and certified by the HDC for rehabilitation of locally designated historic resources as a credit against property taxes paid. Normal or routine exterior maintenance is covered. Items not covered include new construction or additions, interior work. Maintenance work that requires HDC prior approval, such as replacing original materials with a substitute material, such as the replacement of a tin roof with asphalt shingles, may also qualify for the tax credit with HDC approval. The tax refund credit is allowed for the tax year immediately following the year in which the work or any portion thereof is completed. Any unused portion of this tax credit may be carried forward for as many as five (5) subsequent tax years.  
 
Work eligible for tax credit must meet the following criteria:

  1. Be designated as a historic resource in Rockville.
  2. Be exterior work only.
  3. Be undertaken with an approved Certificate of Approval, or be ordinary maintenance expenses that exceed $1,000 in any one year, and is recommended for tax credits by the Historic District Commission. (Take before and after photos.)
  4. Work must be done after the date of historic designation.
  5. Work should be performed by a contractor with an approved Maryland State Home Improvement License, a Federal Tax Identification number, and a valid license issued by Montgomery County.
  6. Labor costs of the property owner are not eligible, but expenditures for materials are allowable.

The Montgomery County Tax Credit Program is administered by the Montgomery County Department of Finance at 240-777-8931. Rockville property owners must submit application materials to the City’s Historic Preservation Division for processing. Applications are reviewed by the Historic District Commission and then forwarded to the County for final review and disbursement of the tax credit.

Applications should be postmarked by April 1 of each year.

More information about the program and detailed application instructions are available at the Montgomery County Historic Preservation Instructions for Filing a Tax Credit.