HUBZone

The HUBZone (Historically Underutilized Business Zone) Empowerment Contracting Program provides federal contracting preferences to businesses in certain urban and rural areas. It is a program of the Small Business Administration (SBA). HUBZone certification enables a business to be more competitive in contracting and procurement opportunities with the Federal government. 

Enterprise Zone

A ten-year credit against local real property taxes is offered for business improvements or new construction. The credit is based on new property taxes generated because of the expansion or new construction. In years 1-5, Baltimore City will waive 80% of the new property taxes generated. In years 6-10 the credit decreases 10% annually (70%, 60%, 50%, 40%, 30%).

The Employment Tax Credit is a one-to-three year tax credit for wages paid to new hires in the Enterprise Zone. The standard credit is a one-time $1,000 credit per new hire.

Opportunity Zone

Investors interested in taking advantage of Opportunity Zone tax benefit, must invest realized capital gains into a Qualified Opportunity Fund within 180 days that the capital gains are realized. The tax benefits associated with a Qualified Opportunity Fund are threefold:

  • Deferral on the original capital gains taxes invested in a Qualified Opportunity Fund until 2026 (or the sale of the investment)

  • Reduction of capital gains tax on the original capital gain investment by 10 percent after a 5-year hold and 15 percent after a 7-year hold

  • Tax-free appreciation on the original capital gains if an investment is held for at least 10 years; the investor pays no capital gains taxes on appreciation in the investment above the original capital gains investment.

Central Location with over 105 amenities nearby.