1. A. Upon the approval of an application, the Department shall issue an initial tax credit certificate to the applicant:

   1. (1) Allocating the initial amount of the State tax credit for the project; and
   2. (2) Specifying the terms and conditions of the State tax credit.

2. B. Subject to the limitations of §C of this regulation:

   1. (1) An initial State tax credit certificate shall equal 20 percent of the applicant’s estimated new construction costs and rehabilitation costs for the project; and
   2. (2) Upon completion of the project or a phase of the project, a final tax credit certificate shall equal 20 percent of the applicant’s actual new construction costs and rehabilitation costs for the completed phase of the project.
3. C. For purposes of calculating the credit authorized under §B of this regulation, the portion of costs that are attributed to new construction costs may not exceed 50 percent of the total costs of the catalytic revitalization project or phase.
4. D. A final tax credit certificate may not be issued for more than 20 percent of the project’s eligible expenses to date.
5. E. A final tax credit certificate may not be issued that would exceed the aggregated limit of a project’s initial tax credit certificate.

Authority: Housing and Community Development Article, §6-904, Annotated Code of Maryland

Effective date: March 17, 2025 (52:5 Md. R. 236)