Eligibility for Enterprise Zone Benefits
To qualify for the Enterprise Zone benefits, a business must first be located within the zone.
Enterprise Zone Map
The business must also meet the minimum requirements for construction/rehabilitation investment or job creation. In addition, the program is restricted to certain business types.
The minimum requirements for construction/rehabilitation investment or job creation are as follows:
In City Center (CC-MU Zoning Area): $5,000 construction or rehabilitation investment or
1 new job created
Outside City Center: $50,000 construction or rehabilitation investment or
5 new jobs created
Note: For investment, machinery & equipment purchases are not eligible.
A new job is defined as:
• Full time, permanent position (35 hours or more per week)
• Earning 150% of the federal minimum wage
• Employed for at least six months before claiming credit
• Not previously existed in Washington County before the business’ location or expansion in the Enterprise Zone
Eligible business types are as follows:
- Corporate/Regional Offices
- Service Industries
- Mercantile/Retail, if located within City Center
Incentives Offered through the Enterprise Zone
The Enterprise Zone incentives are available to commercial projects only. There are two (2) components of the incentive:
Real Property Tax Credits:
Ten-year credit against local real property taxes on the value of a portion of real property improvements. Properties located in the City receive the tax credit on both the City and County property taxes.
- Year 1-5: 80% (of the change in assessed value)
- Year 6: 70%
- Year 7: 60%
- Year 8: 50%
- Year 9: 40%
- Year 10: 30%
Income Tax Credit:
One or three-year credit for wages paid to eligible new employees. General credit is a one-time, $1,000 credit per new worker. For economically disadvantaged employees, credit increase to a total of $6,000 per worker distributed over three years (or $2,000 per worker for 3 years).
Administration and Forms
The Enterprise Zone is administered by the Hagerstown-Washington County Economic Development Commission (EDC). Point of contact is:
Complete program guidelines apply.
Click on this link for the full Program Guidelines & Application.