Chapter 07 – High-Performance Newly Constructed Dwellings

The application process for obtaining the tax credit,

The criteria for qualifying for the tax credit,

The application process for obtaining a certification of the dwelling as a highperformance newly constructed dwelling,

The criteria for maintaining eligibility for the tax credit,

How the tax credit is applied, whether it is transferable and when the tax credit program will terminate, and

The effect of other tax credits on how the High-Performance Newly Constructed Dwelling Tax Credit is applied to a dwelling.

“Closing Documentation” means any form from the settlement of the sale of real estate that contains the address of the property transferred, the parties to the transfer, and the date of the transfer.

“Credit” means the tax credit described in these regulations for highperformance newly constructed dwellings.

“DHCD” means the Baltimore City Department of Housing and Community Development.

“Finance” means the Baltimore City Department of Finance.

“HERS” means the Home Energy Rating System.

“High performance” has the meaning stated in MD <cite data-doc="Md. Code" data-path="gtp|9242">Tax-Property Article, §9242(a)</cite>.

“LEED” means the U.S. Green Building Council’s Leadership in Energy and Environmental Design.

“Newly constructed dwelling” has the meaning stated in <cite data-doc="City of Baltimore, Md., Code" data-path="|28">City Code Article 28</cite>, §10-18.1(a)(3).

“NGBS” means the National Green Building Standard.

“Owner” has the meaning stated in MD <cite data-doc="Md. Code" data-path="gtp|9-304">Tax-Property Article, §9-304(d)</cite>.

“System” means the Department of Finance’s Online Tax Credit Application System.

“Vacant dwelling” has the meaning stated in <cite data-doc="City of Baltimore, Md., Code" data-path="|28">City Code Article 28</cite>, §10-18.1(a)(5).

Begins at 50 percent of the tax imposed on the qualifying property in the first full tax year in which the property qualifies and

Decreases by 10 percent in each of the four following years.

Beginning in the sixth full tax year after the property initially qualifies; or

If continuing eligibility requirements are not met.

Purchase and occupy as the property owner’s principal residence a highperformance newly constructed dwelling;

Receive a high-performance certification from DHCD;

File a state income tax return as a resident of Baltimore City for each taxable year for which the credit is sought;

The property owner may not be receiving the credit previously authorized under <cite data-doc="City of Baltimore, Md., Code" data-path="|28|§10-5">City Code Article 28, § 10-5</cite>; and

The property owner shall timely submit a completed application in accordance with the specifications in § .05.

Be one of the following:

Be located within the City of Baltimore;

Be purchased by the owner-occupant following completion of the dwelling, or be constructed on land that was purchased by the owner-occupant prior to construction of the dwelling;

Receive an occupancy permit following the construction or conversion; and

Meet the standards set forth in the Maryland <cite data-doc="Md. Code" data-path="gtp|9-242">Tax-Property Article, § 9-242(a)</cite>.

The high-performance certification date,

The date on which the use and occupancy permit was issued,

The first assessment notice of the newly constructed dwelling, or

The date of settlement.

An application for the tax credit that is both:

A final occupancy permit for the completed dwelling; and

A certification of the property as a high-performance newly constructed dwelling by the DHCD.

Submit a completed application within 90 days of the issuance of a final occupancy permit for the dwelling, and

Include complete documentation of the construction cost of the new dwelling.

This system can be accessed via the internet at the following url: <u>https://propertytaxcredits.baltimorecity.gov</u>

An applicant shall create a user account to gain access to the application system.

The user account may be used to apply for this and other tax credits for the property.

Connectivity issues experienced by the applicant, or

Issues beyond the control of the City of Baltimore’s Department of Finance.

For a timely submitted application, the Department of Finance shall provide the relevant details of the subject property to DHCD for certification of the property.

For a newly-constructed dwelling built on vacant land DHCD shall review the plans to determine whether the dwelling was constructed according to the high-performance elements of the Baltimore City Residential Building Code.

Dwellings constructed prior to 2015 or that were substantially renovated without obtaining a new construction plan number and plan approval from the DHCD permit center shall qualify for the credit by completing one of the following:

Failure to file certification documentation required under .05(F)(3) with Finance within 30 days of receipt shall result in rejection of the application and the applicant may not reapply.

A copy of the final occupancy permit issued for the property after construction or rehabilitation was completed,

A copy of any building permit issued during the construction or rehabilitation of the property,

A copy of the closing documentation issued to the purchaser at the time of settlement on the new dwelling or the land on which it was built, and

Other required documents available at the time of application.

Submit a letter with the application stating that no occupancy permit was issued prior to settlement, and

Email a copy of the occupancy permit to <u>tax.credits@baltimorecity.gov</u> when it is received.

Is in full compliance with the building, fire, and related codes of Baltimore City;

Maintains its high-performance rating; and

Is the applicant’s principal residence.

The application of any credit awarded to the property under Maryland Tax Property Article §§ 9-104 and 9-105; and

Any other real property tax credit other than the credit specified in .08(B).