ELLICOTT CITY, MD – Howard County Executive Calvin Ball today unveiled the county’s transformative, first-ever Enterprise Zone. An economic gamechanger, the Eastern Howard County Enterprise Zone is a massive incentive program for businesses along Route 1 and in Columbia Gateway, offering tax credits to businesses looking to reinvest in their properties and tax benefits to those looking to grow their employment base. Businesses in the Eastern Howard County Enterprise Zone interested in learning more about how the designation can elevate their business, should email the Howard County Economic Development Authority (HCEDA) at incentives@hceda.org.
“The new Eastern Howard County Enterprise Zone – and first ever in our jurisdiction – will generate capital investment and encourage economic development as well as job creation that will benefit residents and businesses in the heart of our Route 1 Corridor and Columbia Gateway District,” said Ball. “This Enterprise Zone designation will be a premier tool in Howard County’s strategy for business attraction and strategic redevelopment. Thank you to Governor Moore and the Maryland Department of Commerce for your vision, leadership, and partnership in growing Maryland’s economy.”
Established by the Maryland Department of Commerce in 1982, Enterprise Zones have long proven their ability to drive economic growth across Maryland by incentivizing capital investments in businesses and creating new jobs. One of just 36 such areas statewide in 20 jurisdictions, Howard County’s new Enterprise Zone encompasses 2,337 total acres of commercial and industrial properties along the Route 1 corridor roughly bounded by I-95 to the west, the Anne Arundel County line to the east, MD 100 to the north and MD 175 to the south. The zone also includes the 1,000-acre business park at Columbia Gateway roughly bounded by Snowden River Parkway to the west, I-95 to the east, MD 175 to the north and the CSX rail line to the south. Several additional parcels just north of MD 175 adjacent to MD 108 are also included in the new zone.
The largest incentive to businesses under the program is the Enterprise Zone Local Property Tax Benefit. This property tax credit is for new investment in commercial and industrial improvements and reduces the property tax increase following renovations or new structural improvements. The credit applies for 10 years, starting at 80 percent for the first five years and declining by 10 percent each year thereafter. Under the Enterprise Zone program, the State reimburses counties 50 percent of the lost property tax revenue from the increased assessment. The credit only applies to the increased property tax liability that occurs following qualifying investment, not to the preexisting assessed value. There is no loss in local property tax revenue from the baseline tax year prior to the zone’s creation. Residential and government-owned properties are not eligible for Enterprise Zone benefits.
Additionally, through its income tax credit, the Enterprise Zone program also encourages job growth by providing a one-time State income tax benefit of $1,000 for each new full-time employee hired in the zone. The program enhances this credit up to $6,000 total over three tax years for each economically disadvantaged employee hired.
“The Howard County Chamber views this opportunity zone as needed and essential during a difficult time in our state’s economy,” said Kristi Simon, President & CEO, Howard County Chamber of Commerce. “Maryland’s efforts to attract and retain business are limited by higher tax rates and employment requirements than our surrounding states. This project will allow businesses to receive property and income tax credits, making this a win-win for the business community and the residents of Howard County.”
The announcement was hosted at Saval Foodservice’s facility on Dorsey Road in Elkridge, a food distributor located within the newly designated Enterprise Zone.
“Howard County’s support and innovative programs have been critical to our growth and success over the years. The designation of this Enterprise Zone is a game-changer for businesses like ours and the surrounding community, said Paul Saval, Owner, Saval Foods LLC. We view our growth as an opportunity to give back to Howard County by supporting the community and other businesses through our partnerships and hiring efforts.”
Moreover, the Eastern Howard County Enterprise Zone and its incentives align with the County’s new General Plan, HoCo By Design, and recently announced preferred option for the Gateway Master Plan.
“The Eastern Howard County Enterprise Zone will not only help spur the revitalization of the Columbia Gateway innovation district but also to act as a significant job generator for the area,” said Lynda Eisenberg, Director, Howard County Department of Planning and Zoning.
As noted in HoCo By Design and its “Route 1 Corridor Plan: A Plan for Washington Boulevard” companion, both plans emphasize the Route 1 Corridor’s uniqueness and the importance of attracting public and private investment and spurring redevelopment to enhance the attractiveness and economic value of the area. These plans also recognize the market pressures within the Route 1 Corridor, shifting investment from job-creating commercial and industrial uses toward residential redevelopment.
“The Route 1 Corridor and Columbia Gateway are key regional employment centers both today and for our future,” said Jennifer Jones, CEO, HCEDA. “This new enterprise zone designation is another important tool in Howard County’s comprehensive strategy to encourage employment growth and targeted redevelopment.”
The Eastern Howard County Enterprise Zone is a bold step forward in realizing the vision set out in these plans and the incentives that accompany this designation set the stage for transformative redevelopment. This area will become an epicenter of economic growth, helping businesses reimaging underutilized spaces and attracting public and private investment that beautifies our community and creates family-supporting jobs.
“We would like to thank Dr. Ball for his continued commitment to providing economic opportunity and increased housing accessibility in Howard County,” said Sarah Rayne, CEO, Howard County Association of REALTORS. “The Enterprise Zone will serve as a catalyst for growth and revitalization on the Route 1 corridor between Routes 100 and 175 and for Columbia Gateway. We are supportive of bringing the enterprise zone and all of its benefits to Howard County.”
The Gateway Master Plan will provide a comprehensive, actionable roadmap to guide Gateway’s long-term transformation into an “innovation district” – a regional destination for new research and ideas within an area that is dynamic, mixed-use, connected, and creative. Spanning approximately 1,000 acres of business and industrial space, Gateway’s size, central location between Baltimore and the District of Columbia, and current configuration offer considerable potential for future growth and development. The plan positions Gateway as the region’s nerve center for groundbreaking research, trailblazing ideas, and bold entrepreneurship.
To learn more about the Eastern Howard County Enterprise Zone and related tax benefits, contact HCEDA at incentives@hceda.org.
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