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.
| Years after purchase |
Percentage deductible each year |
| 1 to 5 |
40 percent |
| 6 |
35 percent |
| 7 |
30 percent |
| 8 |
25 percent |
| 9 |
20 percent |
| 10 |
15 percent |
| 11 and over |
0 percent |
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
