Neighborhood Stabilization Credit

If you purchased a home in the Waverly or Landsdowne 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 Baltimore County over a ten-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.

Qualifications

To qualify for the credit:

• You must have purchased a home in the Waverly or Landsdowne section of Baltimore City, or in the Hillendale, Northbrook, Pelham Woods or Taylor/Dartmouth sections of Baltimore County.
• In Baltimore City, the credit must have been applied for by Dec. 31, 2002.
• In Baltimore County, the credit must have been applied for by Dec. 31, 2005.
• The home must be the taxpayer's primary residence.

Claiming the credit

• Complete Maryland Form 502, 505 or 515 to claim the credit. The credit cannot be claimed on short Form 503.
• Complete Form 502CR and enter on line 1 of Part H the amount certified by Baltimore City or Baltimore County.
• File Form 502CR with your Maryland return, and include a copy of the certification from Baltimore City or Baltimore County.

If the credit exceeds your tax liability, the unused credit may be refunded.

For more information, contact:
Neighborhood Housing Services of Baltimore (for Baltimore County)
1055 Taylor Avenue
Baltimore, MD 21286
410-769-8820
phull@nhsbaltimore.com