Montgomery County is home to some of the region’s most beautiful and historically significant homes — from early farmhouses and Victorians in Brookeville and Kensington to mid-century gems in Silver Spring and Chevy Chase. Preserving that history is more than an act of love for architecture; it’s a contribution to the community’s character and legacy.

To help homeowners keep these properties in top condition, Montgomery County offers a Historic Preservation Tax Credit Program — a generous local incentive designed to offset the cost of maintaining and restoring designated historic homes. For many homeowners, this program can make the difference between “someday” and “let’s do it this year.”

At Design Builders, we believe that quality craftsmanship and historic preservation go hand in hand. Whether it’s restoring a porch, repairing a deck, or reworking exterior elements that define a property’s charm, this tax credit helps homeowners invest confidently in their homes’ future.

Understanding the Montgomery County Historic Preservation Tax Credit

The Montgomery County Historic Preservation Tax Credit provides a 25% credit on qualified exterior rehabilitation work, applied directly against your county property taxes.

This is not a rebate or grant — it’s a credit that reduces your annual property tax bill, with the option to carry forward unused portions for up to five years.

It’s designed for homeowners whose properties are officially designated as historic under the County’s Master Plan for Historic Preservation. That includes both individually listed properties and those located within recognized Historic Districts such as Takoma Park, Silver Spring, and Chevy Chase Village.

Who Is Eligible?

To qualify for the Montgomery County tax credit, a property must meet these key criteria:

1. Historic Designation:
   The property must be listed in the County’s Master Plan for Historic Preservation or be a contributing structure within a designated Historic District.
   (You can confirm your home’s status through the County’s Planning Department or the Montgomery Planning website.)

2. Type of Work:
   The credit only applies to exterior rehabilitation — interior work is not eligible.
   This includes structural repairs, exterior finishes, and restoration work visible from the outside.

3. Licensed Contractor:
   All work must be performed by a licensed contractor, ensuring that the work meets building codes and preservation standards.

4. Minimum Expenditure:
   You must spend at least $1,000 in qualified work during the calendar year.

5. Permits and Approvals:
   Some projects require a Historic Area Work Permit (HAWP). However, smaller “in-kind” repairs — meaning work that matches existing materials and design — generally do not need pre-approval.

What Kind of Work Qualifies?

Montgomery County’s credit applies to work that preserves or restores exterior historic features. Examples include:

• Repairing or replacing roofs with historically appropriate materials

• Restoring original wood windows and shutters

• Repairing porches, balconies, and decks

• Repointing masonry or stone foundations

• Restoring original siding or architectural trim

• Repairing decorative features such as brackets, columns, or railings

• Repairing historic outbuildings (barns, garages, carriage houses)

• Painting or surface refinishing when part of broader exterior restoration

• Professional design, engineering, or preservation consulting services

These projects all align beautifully with Design Builders’ strengths — particularly when it comes to rebuilding or restoring outdoor spaces like porches, decks, and screened enclosures that retain the home’s original charm.

Work That Does Not Qualify

Some expenses, however, are not eligible for the credit:

• New additions or new construction

• Interior renovations (kitchens, baths, etc.)

• Landscaping or tree work

• Installation of modern materials that alter original appearance

• Work performed without necessary permits or in violation of preservation guidelines

• Tool, equipment, or appliance purchases

The key is preservation, not modernization. The county rewards repairs that protect what’s already there — not transformations that erase it.

How the Tax Credit Works

Once your project is complete, you can apply for the tax credit by submitting documentation to the Historic Preservation Office (HPO) of the Montgomery County Planning Department.

Here’s how the process works:

1. Do the Work (During the Calendar Year):
   Complete eligible exterior rehabilitation between January 1 and December 31.

2. Keep Your Records:
   Save invoices, receipts, and “before and after” photos for each component of the project. The county requires proof of payment and detailed cost breakdowns.

3. Submit Your Application:
   Applications are due by April 1 of the following year.
   For example, work completed in 2024 must be submitted by April 1, 2025.

4. Review and Recommendation:
   The Historic Preservation Commission (HPC) reviews the application to confirm that the work meets historic standards. Approved projects are then sent to the County Department of Finance.

5. Tax Credit Issued:
   Once approved, your property tax bill will reflect a credit equal to 25% of eligible costs, applied for that tax year.
   If the full credit can’t be used in one year, it can be carried forward for up to five years.

Stacking Credits: Double the Benefit

Homeowners in Montgomery County can often combine local and state tax credits — a powerful opportunity that can substantially reduce the total cost of restoration.

For instance:

• The State of Maryland offers a 20% income tax credit for approved rehabilitation work on historic properties.

• The County of Montgomery offers a 25% property tax credit for the same type of project (exterior-only).

When used together, this means homeowners could recover nearly half of their eligible costs through tax savings.

It’s one of the most beneficial and underutilized programs available to Maryland homeowners.

Why It Matters

Montgomery County’s historic homes are part of what makes the region special. They tell the story of our communities — from the agrarian past to the suburban growth of the 20th century. Preserving them is about more than aesthetics; it’s about maintaining the integrity and charm that make our neighborhoods feel like home.

The county’s tax credit program:

• Encourages responsible stewardship of historic properties

• Stimulates reinvestment in established neighborhoods

• Preserves architectural diversity and craftsmanship

• Helps maintain property values by keeping older homes in excellent condition

As more homeowners take advantage of the program, entire historic districts benefit — from revitalized streetscapes to stronger community pride.

Design Builders: A Partner in Preservation

For homeowners considering exterior rehabilitation projects — from repairing a porch to restoring a deck or re-imagining an outdoor kitchen — Design Builders brings decades of experience in quality craftsmanship and structural integrity.

Our team understands how to blend modern functionality with historic respect. We’re accustomed to working within the parameters of historic district guidelines, ensuring that your project not only meets code but enhances your home’s original design.

We can help you:

• Evaluate whether your property qualifies

• Plan a project that aligns with county preservation standards

• Prepare the documentation and photo evidence needed for your application

• Execute the work with precision, craftsmanship, and attention to detail

By partnering with professionals who respect both the past and the homeowner’s vision for the future, you can maximize your tax benefits while maintaining your home’s timeless beauty.

Start Preserving — and Saving

If you own a historic home in Montgomery County, there’s never been a better time to reinvest in it. The Historic Preservation Tax Credit rewards the kind of work that keeps neighborhoods beautiful, resilient, and full of character.

Design Builders can help you make the most of this opportunity — turning necessary repairs into smart investments that last for generations.

📞 Call us: (301) 875-2781
📧 Email: info@designbuildersmd.com
🌐 Visit: www.designbuildersmd.com