Three Levels of Incentives

This state program provides three levels of incentives that are open to eligible artists, businesses/organizations and property owners.

Abatement of Admissions & Amusement Tax

The admissions and amusement tax gross receipts from any admissions and amusement charge levied by an arts and entertainment enterprise or qualifying residing artist in an arts and entertainment district of the City are exempt for a period of 10 years from June 30, 2013.

Property Tax Credit

The owner of a manufacturing, commercial, or industrial building that is located in an arts and entertainment district; and is wholly or partially renovated for use by a qualifying residing artist or an arts and entertainment enterprise can be eligible for a property tax credit for 6 years, as long as the building is used by a qualifying residing artist or an arts and entertainment enterprise.

City of Cambridge Property Tax Application (PDF)

Property owners must use this application to apply for the Cambridge A&E property tax credit.

Artist Income Tax Deduction - New 2014 Legislation

Any artist, who resides in Maryland, creates artistic work in any of the 22 A&E Districts and sells that work in any of the 22 Districts will be eligible for the artist's income tax incentive. The act takes effect July 1, 2014 and is applicable to all taxable years beginning after December 31, 2013.

New definition "Qualifying residing artist" means an individual who:
(a) owns or rents residential real property in the state;
(b) conducts a business in any arts and entertainment district; and
(c) derives income from the sale or performance within any arts and entertainment district of an artistic work that the individual wrote, composed, or executed, either alone or with others, in any arts and entertainment district.

This change leverages a statewide market for artists, empowering you as A&E managers with a stronger incentive to attract artists to locate studios, galleries, and performance venues in underutilized spaces within Districts and to cross promote both Districts and artists.

MD Form 502AE (PDF)

This is the income tax subtraction modification form that must be submitted with state income tax returns. This tax benefit only applies at the state level.