Ch. 667

1999 LAWS OF MARYLAND

(i) Listed in the National Register of Historic Places;

(ii) Designated as a historic property under local law;

(iii) 1. Located in a historic district listed on the National
Register of Historic Places or in a local historic district; and

2. Certified by the Director of the Maryland Historical Trust
as contributing to the significance of the district; or

(iv) Located in a certified heritage area and which has been
certified by the Maryland Heritage Areas Authority as contributing to the
significance of the certified heritage area.

(5) "Certified rehabilitation" means rehabilitation of a certified heritage
structure which the Director certifies is substantial rehabilitation in conformance
with the rehabilitation standards of the United States Secretary of the Interior.

(6) "Director" means the Director of the Maryland Historical Trust.

(7) "Local historic district" means a district that the governing body of a
county or municipal corporation, or the Mayor and City Council of Baltimore, has
designated under local law as historic. 

(8) "Qualified rehabilitation expenditure" means any amount [expended
in the rehabilitation of a structure] that is properly chargeable to capital account
AND IS EXPENDED IN THE REHABILITATION OF A STRUCTURE THAT BY THE END OF
THE TAXABLE YEAR IN WHICH THE CERTIFIED REHABILITATION IS COMPLETED IS A
CERTIFIED HERITAGE STRUCTURE.

(9) "Substantial rehabilitation" means rehabilitation of a structure for
which the qualified rehabilitation expenditures, during the 24-month period selected
by the taxpayer ending with or within the taxable year, exceed:

(i) For owner-occupied residential property, $5,000; or

(ii) For all other property, the greater of:

1. The adjusted basis of the structure; or

2. $5,000.

(b) (1) Subject to subsection (c) of this section, for the taxable year in which
a certified rehabilitation is completed, a business entity or an individual may claim a
tax credit in an amount equal to 25% of the taxpayer's qualified rehabilitation
expenditures for the rehabilitation.

(2) The same tax credit may not be applied more than once against
different taxes.

(c) If the credit allowed under this section in any taxable year exceeds the
total tax otherwise payable by the business entity or the individual for that taxable
year, the business entity or individual may apply the excess as a credit for succeeding
years until the earlier of: