The BRAC program is used to focus growth in areas already designated for growth and provide local governments with financial assistance for public infrastructure in these well-defined areas. The program also aligns 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 a pro rata share.
Local jurisdiction receives:
- Payment of 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 bonds, including Tax Increment Financing bonds, issued for infrastructure improvements.
- Priority consideration for financing assistance for projects or operations from various state agencies.
Benefits are available for 10 years from the time the first project in the zone is a designated as a qualified property. 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.
- 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
Application deadlines are April 15 and October 15 each year. Please review BRAC Revitalization and Incentive Zone Application Instructions.
For more information about BRAC contact:
Mark A. Vulcan, Program Manager, Tax Incentives
Maryland Department of Commerce, Office of Finance Programs