ARTS & ENTERTAINMENT DISTRICTS

TAXIncentives

MARYLAND A&E PROGRAM

Administered by MSAC

Legislated in 2001

20 Districts to date

10 Year Designation

MSAC A&E PROGRAM

Districts Span the State Geographically

Rural, Suburban and Metropolitan Environments

Majority under 100 acres - largest almost 300 acres

Maryland A&E Districts

A&E PROGRAM GOAL

The goal is to develop, promote and support healthy vibrant creative clusters in communities throughout Maryland:

• Create accessible, unique arts destinations • Supply opportunities for dynamic and participatory arts experiences• Encourage community involvement and neighborhood revitalization• Give artists the opportunity to live, work and

create an economically prosperous future

A&E TAX INCENTIVES:

Encourage creation of areas where artists can live, work, create and prosper.

Rejuvenate and animate public and private spaces to shape the physical and social character of a town or neighborhood based on arts and culture.

Spur economic and community revitalization through cultural vitality.

A&E TAX INCENTIVES

1. Real Property Tax Credit

2. Income Tax Subtraction Modification

3. Admissions and Amusement Tax Abatement

Real Property Tax Credit

New Construction (whole or in part) or renovations to certain buildings located in the District

Create live-work space for artists/or space for A&E Enterprises

A&E Enterprise is one that is dedicated to the Visual or Performing Arts

Real Property Tax Credit

Governing body of the county or municipality determines

Years of eligibility - up to 10 years

Amount of credit - up to 100% usually on a descending basis

Real Property Tax Credit

Building must be zoned:

CommercialManufacturingIndustrial

Real Property Tax Credit

Building Permit

Certified eligibility by A&E District or local government

Contact both State and Local Department of Assessment and Taxation

Income Tax Subtraction for Artists

Qualifying residing artists pay no state or local tax on qualifying income

Maryland Tax Form 502AE

Income Tax Subtraction for Artists

Qualifying residing must:

Own or rent real property within the county or Baltimore City where the A&E District is located

Income Tax Subtraction for Artists

Qualifying residing must:

Derive income from the sale or performance of an original creative work within the A&E District –

That the artist created, wrote, composed or executed within the district

Income Tax Subtraction for Artists

Does not apply to:

The creation or execution of industry oriented or industry related production such as a commercial or advertising copy.

Services such as tailoring, clothing alteration, or jewelry repair.

Income Tax Subtraction for Artists

Does not apply to:

The creation or execution of industry oriented or industry related production such as a commercial or advertising copy.

Services such as tailoring, clothing alteration, or jewelry repair.

Admissions and Amusements TaxAbatement

Levied on gross receipts from admissions.

Imposed by Maryland’s counties and municipalities and is collected by the State.

Rate of tax varies up to 10 %.

Admissions and Amusements TaxAbatement

Arts &Entertainment Enterprises (those dedicated to the visual or performing arts) located in an A&E District and qualified residing artists are exempted from payment of the Admission and Amusement Tax.