Hagerstown Arts and Entertainment (A&E) District

Maryland is one of the first states in the country to develop Arts and Entertainment Districts on a statewide basis as a way to stimulate the economy and improve quality of life. Hagerstown’s Arts and Entertainment District was one of the first designated in the State of Maryland. Hagerstown's Arts & Entertainment District Map

Incentives Offered through the Arts and Entertainment District

Real Property Tax Credit

The City and County both agreed to provide a 50% property tax credit for 10 years on the increase in assessment which results from a renovation project to create artist housing or space for Arts and Entertainment enterprises. The tax credit shall apply only to that portion of the building occupied by the qualifying residing artist or arts and entertainment enterprise. The Arts and Entertainment District property tax credit shall not be granted for properties utilizing the Enterprise Zone property tax credit.

Admissions & Amusement Tax Exemption Program

Enterprises dedicated to visual or performing arts located within the Arts and Entertainment District are exempt from the collection of the State of Maryland's Admissions and Amusement Tax. Businesses must qualify for the exemption and notification must be provided to the State of Maryland's Comptroller's Office in order to be eligible.
Enterprises interested in participating in the Admissions & Amusement Tax Exemption Program should register with the Maryland State Comptroller’s Office using the Comptroller of Maryland Combined Registration Application (CRA). Click here for Form CRA.

Income Tax Subtraction Modification Program

Qualifying artists who own or rent residential real property in the county where the Arts and Entertainment District is located, and who conduct business in the District, may be eligible for a Maryland personal income tax subtraction modification to eliminate state and local income tax on their income from the sale, publication, or production within the District of their artistic work that is written, composed, or executed within the District. This includes income derived from internet, mail order, and catalog sales of artistic work that is shipped from within the District to buyers in another location, if the qualifying artist created that artistic work within the District.

Artists who would like to take advantage of the program must submit the Maryland State Tax Form 502AE when they file their state income tax returns.

The A&E District programs are available as a result of the City's designation as a State of Maryland Arts and Entertainment District through the Maryland Department of Business and Economic Development.