An economic gamechanger, the Eastern Howard County Enterprise Zone is a massive incentive program for businesses along Route 1 and in Columbia Gateway, offering tax credits to businesses looking to reinvest in their properties and tax benefits to those looking to grow their employment base. The new Eastern Howard County Enterprise Zone — and first ever in our jurisdiction — will generate capital investment and encourage economic development as well as job creation that will benefit residents and businesses in the heart of our Route 1 Corridor and Columbia Gateway District.
Established by the Maryland Department of Commerce in , Enterprise Zones have long proven their ability to drive economic growth across Maryland by incentivizing capital investments in businesses and creating new jobs. Several additional parcels just north of MD adjacent to MD are also included in the new zone.
This property tax credit is for new investment in commercial and industrial improvements and reduces the property tax increase following renovations or new structural improvements.
The credit applies for 10 years, starting at 80 percent for the first five years and declining by 10 percent each year thereafter. Under the Enterprise Zone program, the State reimburses counties 50 percent of the lost property tax revenue from the increased assessment. The credit only applies to the increased property tax liability that occurs following qualifying investment, not to the preexisting assessed value. Residential and government-owned properties are not eligible for Enterprise Zone benefits.
This project will allow businesses to receive property and income tax credits, making this a win-win for the business community and the residents of Howard County. These plans also recognize the market pressures within the Route 1 Corridor, shifting investment from job-creating commercial and industrial uses toward residential redevelopment.
