Historic Tax Credit Savings Explained
Baltimore may be the 'Greatest City in America', but the property taxes are very high, and can limit the purchase power of potential home buyers. Unlike most city developers, CCD&D has years of experience leveraging the city's tax incentives to the advantage of home buyers. The experts at CCD&D have successfully completed numerous renovations that comply with the Baltimore City Historical Tax Credit guidelines (CHAP Historical and Architectural Preservation / Tax Incentives). The credit lasts for 10 years and can save the homeowner more than $50k over its lifespan, but the paperwork and regulations are no walk in the park. Let CCD&D deal with the CHAP headache and enjoy thousands of dollars in savings each year.
Standard taxes for a property in Baltimore City are ~$2.248 for every $100 of assessed property value (see detailed description from Live Baltimore). The tax credit appears as a “Special Credit” on the tax bill, so if the credit is already active you can see the value on last year’s tax bill. Feel free to read more on the Baltimore City - About CHAP page, and see an example below:
Standard taxes for a property in Baltimore City are ~$2.248 for every $100 of assessed property value (see detailed description from Live Baltimore). The tax credit appears as a “Special Credit” on the tax bill, so if the credit is already active you can see the value on last year’s tax bill. Feel free to read more on the Baltimore City - About CHAP page, and see an example below:
Calculating the CHAP Tax Credit (Fictional Example)
A. Pre-Renovation Value = $150,000
B. Post-Renovation Value = $400,000
C. Baltimore City Tax Rate = 2.248%
Annual Historic Credit = (B-A) * C = $5,620 (which is $56,200 in property tax savings over 10 years!)
A. Pre-Renovation Value = $150,000
B. Post-Renovation Value = $400,000
C. Baltimore City Tax Rate = 2.248%
Annual Historic Credit = (B-A) * C = $5,620 (which is $56,200 in property tax savings over 10 years!)
So What are Some of the Benefits of the CHAP Credit?
- Drastically reduced mortgage payments - typically around $500/month depending on the size of the credit
- More purchase power - typically qualify for $40k-$80k higher sales price with same payment
- Pay off your loan quicker with the savings.
- Less cash to close (lower tax escrow) means more in your pocket and better financing options
- CHAP credit is transferable - HUGE help with re-sale.
- CHAP credit still applies if you chose to use your home as a rental property.
Am I Eligible for a Credit?
Check out our full listing and map of historical districts under our 'Neighborhoods' tab!
