1. A. The Department may monitor a project for compliance and require reports from the applicant demonstrating compliance with this chapter, the Act and any agreement with the Department.

2. B. The Comptroller or the Secretary may not recapture a State tax credit authorized under this chapter if:

   1. (1) The catalytic revitalization project is transferred, in whole or in part, by fee simple transfer of real property or by transfer of an ownership interest in the entity that owns the project to a new owner; and
   2. (2) The Secretary has issued a final tax credit certificate for the catalytic revitalization project under Regulation .06C of this chapter.
3. C. After 30 days of providing written notice to the Department, the original recipient of an initial tax credit issued under this chapter may transfer the initial tax credit certificate to one or more other individuals, nonprofit organization, or business entities.
4. D. The transfer of an initial tax credit need not involve a transfer of the catalytic revitalization project, whether by fee simple transfer of real property or a transfer of a portion or all of the ownership interest that the original recipient holds in the entity that owns the real property to a new owner or owners.
5. E. An initial tax credit certificate may not be transferred to another person without the express written consent of the original recipient or be transferred as part of the involuntary transfer of the real property ownership interest in an entity that owns the real property without the prior written consent of the original recipient of the certificate and the Secretary.
6. F. The Secretary may revoke an initial credit certificate on a finding by the Secretary that the recipient is not in compliance with the initial credit certificate or an agreement with the Department regarding the initial credit certificate.
7. G. If the Secretary revokes an initial credit certificate under §F of this regulation, the Secretary may award an initial credit certificate to another applicant, provided that the award does not exceed the amount of the revoked initial credit certificate.
8. H. The Secretary may not revoke a tax credit certificate awarded on or before July 1, 2024 unless the individual, nonprofit organization, or business entity that received the tax credit certificate ceases rehabilitation of the catalytic revitalization project for which the tax credit was awarded.

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

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