BRAC Revitalization and Incentive Zone Program
To focus growth in areas that are already designated for growth; provide local governments with financial assistance for public infrastructure in these well-defined areas; and align other state resources and programs to local governments and businesses located in the BRAC zones for a coordinated State effort on making the zones the focus of BRAC growth.
Funds must be used for infrastructure improvements. Each year, the amount to be paid to all local jurisdictions is the amount appropriated in the State budget up to $5,000,000. If the total amount applied for exceeds the cap, each jurisdiction receives pro rata share.
Designation Benefits
Local jurisdiction receives:
- 100% of state real property tax increment on qualified properties.
- Payment equal to 50% of the local jurisdiction’s real property tax increment on qualified properties.
- Funds can be used to pay back Tax Increment Financing bonds, used for infrastructure improvements.
- Priority consideration for financing assistance for projects or operations from various state agencies.
Eligibility Requirements
- County Applicant: A county may apply for designation of a BRAC Zone, but if any portion of the area is within a municipal corporation, must obtain municipal consent.
- Municipal Applicant: A municipality may apply for designation of a BRAC Zone but priority consideration will be given to municipal applicants that receive County support.
- Two or more political subdivisions may jointly apply for designation of a BRAC Zone if portions of the proposed area are within each of their common boundaries.
Designation Process
Jurisdictions may apply April 15 and October 15 each year and the Secretary may designate an area a BRAC Zone within 60 days of the submission date. The Secretary is limited to 6 zones in a calendar year and a county may not receive more than 2 designations for the duration of the program.
More information:
Mark A. Vulcan
Director, Tax Incentives
Maryland Department of Business and Economic Development
E-mail: mvulcan@choosemaryland.org
Resources
Statute - 2008
Legislative Changes - 2009
Application
Map of BRAC Zones