Neighborhood Stabilization Credit

If you purchased a home in the Waverly section of Baltimore City, or in the Hillendale, Northbrook, Pelham Woods or Taylor/Dartmouth sections of Baltimore County, you may qualify for a tax credit on your Maryland income tax return. The credit is based on a property tax credit allowed by either Baltimore City or Blatimore County over a 10 year period.

The credit can be claimed in any tax year a property tax credit was allowed.

The property tax credit is a percentage of the property taxes paid each year on the home. The income tax credit is equal to 100 percent of the property tax credit allowed during the tax year.

Years after purchase Percentage deductible each year

1 to 5 40%

6 35%

7 30%

8 25%

9 20%

10 15%

11 and over 0%

QUALIFICATIONS

To Qualify For The Credit

In Baltimore City, the home must have been purchased during the period from July 1, 1996, through June 30, 2002.
In Baltimore County, the home must have been purchased during the period of July 1, 1996, through June 30, 2005.
To be eligible for a property tax credit, the purchaser must apply for the credit with Baltimore City or Blatimore County within six months of purchase.