The Heritage Preservation Tax Credit Program, is a program that is administered by the Maryland Historical Trust. The tax credit offers property owners a Maryland income tax credit equivalent to 20% of the qualified capital costs expended in the rehabilitation of a "certified heritage structure." The maximum credit for Residential projects is $50,000.

Homebuyers buying a Schultz property with the Maryland State Historic Tax Credit can expect the following:

1. APPLICATION - After acquiring the property, if eligible, Schultz Development will make application for the Maryland State Historic Tax Credit.
2. CONDITIONAL APPROVAL - Schultz Development will receive conditional approval for the property tax credit.
3. REVIEW - Upon completion of the renovation, the Maryland Historical Trust will examine the property and grant final approval to Schultz Development.
4. FINAL APPROVAL - A certificate will be issued to Schultz Development confirming tax credit approval.
5. TRANSFER - Prior to settlement, the tax credit will be transferred into the name of the homebuyer.
6. RECEIPT OF REBATE - When the homebuyer files their Maryland state tax returns for the upcoming year, they will submit the tax credit documentation with their tax return. The buyer will receive a cash rebate equivalent to the amount of the rebate minus any owed state income tax.

EXAMPLE:
Schultz Development spends: $200,000 rehabilitating the structure.
The tax credit is worth: $40,000 ($200,000 * 20%).
The homebuyer owes: $6,000 in state income tax.
The homebuyer receives a: $34,000 ($40,000 - $6,000) rebate.

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