Across Maryland’s towns and cities, historic commercial buildings stand as pillars of character, identity, and opportunity. Whether former banks, mills, warehouses, or storefronts, these structures carry with them decades (or centuries) of story. And with the right investment, they can continue to serve modern uses — retail, restaurants, offices, housing — while preserving that heritage.

What Are the Commercial Credits?

Maryland divides commercial historic rehabilitation into two main categories:

Small Commercial (“Main Street”) Projects

• Designed for smaller-scale historic commercial buildings, often along downtowns or main streets.

• Credit rate: 20% of qualified rehabilitation expenses (same as the residential/historic homeowner program).

• Cap/Scope: Projects with up to $500,000 in eligible rehab costs typically qualify.

• Work must preserve historic integrity — for example: restoring a storefront façade, repairing masonry, rehabilitating windows, and other architectural features.

• The building must be a certified historic structure (listed or contributing to a historic district) and the work must comply with preservation standards.

• These projects help bridge the gap between preservation ideals and real-world financial feasibility.

Competitive Commercial Projects

• Intended for larger, income-producing historic buildings — mixed-use, adaptive reuse, large commercial or institutional properties.

• Credit rate: Also 20% of qualified expenses.

• These are not automatically approved — projects are evaluated in a competitive application processadministered by the Maryland Historical Trust (MHT).

• Because funding is limited, not all proposed projects receive credits; they compete based on criteria like economic impact, community benefit, design quality, and alignment with sustainable growth areas.

• These credits can unlock large-scale redevelopment in a way that aligns preservation with economic growth.

Why These Credits Matter — Especially for Outdoor / Structural Work

For businesses, property owners, and investors working on historic structures, these credits:

• Offset big costs: Historic materials and craftsmanship tend to be more expensive than modern replacements, especially when done correctly. A 20% credit can make a large difference in financial feasibility.

• Promote adaptive reuse: Rather than tearing down and rebuilding, property owners are more likely to invest in rehabilitation.

• Encourage maintenance of architectural integrity: Because eligible work must align with preservation standards, the credits help ensure that historic character isn’t sacrificed in pursuit of efficiency.

• Enable value-add outdoor / structural features: Especially in rehabilitation of commercial buildings, elements like porches, outdoor patios, terraces, and historically compatible site work often play a role. These credits can help recoup portions of those structural, exterior, or façade-related expenses (if they qualify) as part of the overall rehabilitation package.

Given your business’s strengths in outdoor living, decks, porches, screened additions, structural foundations, and exterior finishes, your team is well positioned to partner with commercial owners undertaking historic rehabs. You can help specify and build outdoor elements that enhance usability while staying within preservation guidelines.

A Recent Example: Liberty Trust Bank Building, Cumberland, MD

In November 2024, Governor Wes Moore announced a round of $20 million in historic revitalization tax creditsawarded to 10 commercial and institutional rehabilitation projects across Maryland. Office of Governor Wes Moore+1

One standout is the Liberty Trust Bank Building in Cumberland (Allegany County). Preservation Maryland+1

• Building & Role: A six-story early 20th-century structure (circa 1907), originally constructed as a bank, notable for its architecture and prominence on Baltimore Street. Preservation Maryland

• Project Vision: The rehabilitation plans call for converting the building into a fitness center on the ground floor, with residential apartment units on the upper levels. The work also includes restoring architectural details, including returning the Center Street side entrance to its original historic appearance. Preservation Maryland

• Credit Awarded: The project was awarded $1,500,000 in historic tax credits. Preservation Maryland

• Leverage & Community Impact: The investment is part of a larger $7.5 million rehabilitation valuation, leveraging additional capital beyond the tax credit itself. Preservation Maryland+1

This is exactly the kind of commercial rehabilitation — blending community benefit, financial viability, and historic preservation — that these tax credit programs are meant to enable.

Other projects chosen in that round include adaptive reuse of industrial buildings, former bank structures, and institutional buildings across Baltimore City and other counties. Office of Governor Wes Moore+1

How It Works in Practice

Here’s a simplified path that a property owner or developer might follow:

1. Select a historic property (certified or contributing).

2. Plan rehabilitation work — restore or repair structural and exterior components consistent with preservation standards; include architectural, engineering, and consultant fees.

3. Apply for credit through MHT using a Part 1 / Part 2 / Part 3 framework (pre-approval, work description, then post-completion certification).

4. Complete the work and document with invoices, photos, and proof of compliance.

5. Claim the tax credit against Maryland income taxes (or other eligible state obligations), subject to MHT approval or competitive award.

Projects under $500,000 (small commercial) may follow a more streamlined path, as long as they meet the eligibility criteria. Larger, competitive projects will be compared with other proposals each fiscal cycle.

Tips & Considerations for Success

• Start early: Planning, drawings, and compliance review can take months. Don’t begin construction until you have clear direction or approval.

• Use experienced professionals: Architects, preservation consultants, and contractors familiar with historic rehabilitation reduce risk of noncompliance.

• Document thoroughly: Maintain before/after photos, pay records, backup receipts, and clear distinction of eligible vs non-eligible costs.

• Structure the project smartly: If only part of a building is historic, segment the rehab work carefully so eligible costs can be clearly identified.

• Watch funding limits and competition: Competitive credits are limited — only the strongest proposals win. Leverage community benefit, economic impact, and architectural fidelity.

Conclusion: Opportunity Meets Craftsmanship

Maryland’s Commercial and Small Commercial Historic Rehabilitation Tax Credits offer powerful financial incentives to breathe new life into historic buildings. These credits help ensure that designs reflect both practicality and preservation — which is a balance you understand well at Design Builders.

By aligning your expertise in outdoor structures, structural foundations, and historically sensitive design with the needs of commercial property owners, you can play a role in transforming underutilized buildings into vibrant, historically grounded spaces.

If you would like to talk about how Design Builders can work with these credits, contact us at 301-875-2781 or email us at 301-875-2781.