Committee approves new dwelling tax credit

The re-authorization of a tax credit for purchasing a “new” home is headed back to the Baltimore City Council for approval.

The Taxation, Finance and Economic Development Committee voted 3-0, with two members absent, to send the bill back for consideration by the entire council on Monday.

The Newly Constructed Dwelling Tax Credit provides a 50 percent real tax credit for the first year after purchasing a home with a building permit issued after Oct. 1, 1994. The credit is then reduced by 10 percent a year until it expires.

According to figures from the city, there were $3.6 million of these  tax credits awarded in the city in 2013. That number is expected to be $3.2 million in 2014. Since 1996 the city has issued $35.3 million in credits.

Councilman Bill Henry, who is running for state Senate, sponsored the re-authorization bill in April because he was afraid the Finance Department may let the credit sunset. But Henry was one of two committee members who missed the vote.

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