Council supports Route 1 tax credit to boost property improvements in Elk Ridge

The Howard County Council held a legislative public hearing on June 16, 2025, to discuss Council Bill 46-2025, which aims to reestablish and enhance the Route 1 tax credit program. This initiative is designed to encourage property owners along the Route 1 corridor to undertake renovations and improvements that will revitalize the area.

Jennifer Jones, head of the Economic Development Authority, presented the bill, highlighting several key provisions intended to make the tax credit more appealing. Notably, the bill proposes to remove the current size limit of 15 acres for eligible properties, allowing larger sites to participate. This change could potentially increase the number of properties that can benefit from the tax credit, enhancing the visual impact of improvements along Route 1.

Additionally, the bill would permit mixed-use properties to apply for the tax credit, provided that the improvements support the commercial or industrial components of the property. The removal of the $100,000 cap on tax credits per project is another significant change, which aims to facilitate more substantial and visually transformative projects. However, landscaping enhancements would still be capped at $100,000.

The proposed legislation also introduces flexibility in prioritizing impactful projects if demand for tax credits increases, allowing the Department of Planning and Zoning (DPZ) to identify and support the most beneficial projects. Furthermore, the bill seeks to extend the tax credit program for an additional five years, with a sunset provision set for the end of fiscal year 2031.

Kristen O'Connor from the Department of Planning and Zoning emphasized the program's success over the past decade, noting that it has allocated $1.3 million in property tax credits, supporting improvements on 21 properties and contributing to the overall revitalization of the Route 1 corridor.

The council members engaged in discussions regarding the implications of removing the tax credit cap and how to manage larger projects effectively. Questions were raised about the financial administration of the credits and the potential for rolling over unused credits in future years.

Overall, the hearing underscored the county's commitment to enhancing the Route 1 corridor through strategic financial incentives, with the council expected to consider the bill favorably in the coming sessions.