1. ARTS & ENTERTAINMENT DISTRICTS TAXIncentives

2. MARYLAND A&E PROGRAM Administered by MSAC Legislated in 2001 20 Districts to date 10 Year Designation

3. MSAC A&E PROGRAM Districts Span the State Geographically Rural, Suburban and Metropolitan Environments Majority under 100 acres - largest almost 300 acres

4. Maryland A&E Districts

5. A&E PROGRAM GOAL The goal is to develop, promote and support healthy vibrant creative clusters in communities throughout Maryland: Create accessible, unique arts destinations Supply opportunities for dynamic and participatory arts experiences Encourage community involvement and neighborhood revitalization Give artists the opportunity to live, work and create an economically prosperous future

6. A&E TAX INCENTIVES: Encourage creation of areas where artists can live, work, create and prosper. Rejuvenate and animate public and private spaces to shape the physical and social character of a town or neighborhood based on arts and culture. Spur economic and community revitalization through cultural vitality.

7. A&E TAX INCENTIVES 1. Real Property Tax Credit 2. Income Tax Subtraction Modification 3. Admissions and Amusement Tax Abatement

8. Real Property Tax Credit New Construction (whole or in part) or renovations to certain buildings located in the District Create live-work space for artists/or space for A&E Enterprises A&E Enterprise is one that is dedicated to the Visual or Performing Arts

9. Real Property Tax Credit Governing body of the county or municipality determines Years of eligibility - up to 10 years Amount of credit - up to 100% usually on a descending basis

10. Real Property Tax Credit Building must be zoned: Commercial Manufacturing Industrial

11. Real Property Tax Credit Building Permit Certified eligibility by A&E District or local government Contact both State and Local Department of Assessment and Taxation

12. Income Tax Subtraction for Artists Qualifying residing artists pay no state or local tax on qualifying income Maryland Tax Form 502AE

13. Income Tax Subtraction for Artists Qualifying residing must: Own or rent real property within the county or Baltimore City where the A&E District is located

14. Income Tax Subtraction for Artists Qualifying residing must: Derive income from the sale or performance of an original creative work within the A&E District – That the artist created, wrote, composed or executed within the district

15. Income Tax Subtraction for Artists Does not apply to: The creation or execution of industry oriented or industry related production such as a commercial or advertising copy. Services such as tailoring, clothing alteration, or jewelry repair.

16. Income Tax Subtraction for Artists Does not apply to: The creation or execution of industry oriented or industry related production such as a commercial or advertising copy. Services such as tailoring, clothing alteration, or jewelry repair.

17. Admissions and Amusements Tax Abatement Levied on gross receipts from admissions. Imposed by Maryland’s counties and municipalities and is collected by the State. Rate of tax varies up to 10 %.

18. Admissions and Amusements Tax Abatement Arts &Entertainment Enterprises (those dedicated to the visual or performing arts) located in an A&E District and qualified residing artists are exempted from payment of the Admission and Amusement Tax.