The Arts & Entertainment (A&E) District designation offers Maryland counties and municipalities tax incentives and other tools to encourage activity and investment in specific geographic areas where the arts are part of an economic development strategy.
Donor Name: Maryland State Arts Council
State: Maryland
County: All Counties
Type of Grant: Grant
Deadline (mm/dd/yyyy): 04/01/2022
Details:
Maryland was one of the first states in the country to develop a statewide designation program for these types of districts by establishing Maryland’s Arts & Entertainment (A&E) Districts program. Since the creation of the A&E Districts program through legislation enacted in 2001, 29 districts have been established, spurring arts-based economic development in communities throughout the state. The designation makes available incentives to promote arts activity and investment within specified geographic areas.
The benefits currently offered to designated districts include:
- locally determined property tax credits for new construction or renovation of certain buildings that create live-work space for artists and/or space for arts and entertainment enterprises;
- an income tax subtraction modification for income derived from artistic work executed and sold within the districts by “qualifying residing artists”; and
- an exemption from the Admissions and Amusement tax levied by an “arts and entertainment enterprise” or “qualifying residing artist” in a district.
The State’s goal for the A&E Districts program is to develop, promote, and support diverse artistic and cultural centers in communities throughout Maryland that preserve a sense of place, provide unique local experiences, attract tourism, and spur economic revitalization and neighborhood pride.
Strategies supported by the program include but are not limited to:
- creating accessible and unique arts destinations;
- leveraging the State’s regional identities, natural resources, and heritage;
- facilitating opportunities for dynamic arts experiences that actively engage community members and attract visitors;
- enabling artists of all disciplines to live, work, and create an economically prosperous future; and
- investing in the power of place.
Eligibility Criteria
To be eligible, the applicant should be able to document a threshold level of existing arts and cultural assets. To be designated, the applicant must present a compelling, arts-based case for designation. Elements considered when reviewing applicant eligibility and applications include:
- A high concentration of artistic, cultural, or entertainment enterprises
- Well-established anchor attraction(s)
- A number of signature events and/or festivals, including seasonal events and festivals
- Boundary overlap and coordination plans with other revitalization designations (e.g. Maryland Main Street, Heritage Area, etc.)
- Inclusion of arts and entertainment in the area’s current and/or future revitalization strategy(ies)
- Potential for affordable housing (rental or purchase) and studio, exhibition, or performance space
- Transportation and accessibility plans for the proposed district
- Availability of local government and private redevelopment resources
- Incentives capable of increasing the number of residents and businesses
- Measurable goals and objectives specifically for arts and entertainment
- Viable strategies for reaching stated goals and objectives
- Strong leadership and a well-articulated management plan
- Defined management budget with realistic associated income and expense projections with identified income sources
- Professional paid personnel dedicated in total or in part to the A&E District operations and programming
For more information, visit A&E District Designation.
