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:
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.
The State of Maryland reimburses each local jurisdiction 50% of the revenue lost as a result of offering the Enterprise Zone Real Property Tax Credit. This is subject to approval in the annual budget.
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.