Incentives

We welcome your business in Frostburg.  In addition to having a business friendly atmosphere in a great community, there are many tax credits and other incentives available to support locating or growing your business in our community. If you have questions about any of these programs or locating a business in the City of Frostburg, please reach out to the Community Development Director, L. J. Bennett.  She will be glad to assist you.  She may be reached at 301-689-6000 ext. 105 or by email.

Opportunity Zone

A large portion of the City is located within an Opportunity Zone.  Opportunity Zones authorized by the federal tax act in 2017 offer a financial incentive to larger developers for investing in certain geographic areas.  The City has a few key properties poised for development located in an Opportunity Zone. Learn more about Opportunity Zones here!

Enterprise Zone Tax Credit

Most of the commercial and industrial land in the City is located within the Frostburg Enterprise Zone.  Businesses certified in the Enterprise Zone may be eligible for both property and income tax credits.  More information about the Enterprise Zone program in Maryland is available online.  For information about becoming certified, contact City Hall.

Rehabilitation of Commercial Structures Tax Credit

The City of Frostburg and Allegany County also offer incentives for code compliance improvements associated with the rehabilitation of commercial structures. A property tax credit is available for the rehabilitation of existing commercial structures in which a qualifying investment is made. A "qualifying investment" has the purpose of bringing the structure into compliance with current building codes relating to safety or accessibility. This includes elevators, fire suppression systems, means of ingress and egress, or architectural and/or engineering services related to installation or rehabilitation of these features. The investment cannot be less than $250,000, and the tax credit must not exceed 50% of the qualified investment. For more information, contact Elaine Jones at 301-689-6000, ext. 103. There are also numerous incentives available through the State of Maryland, depending on the type and size of the business.

Historic Tax Credits

Properties within the Historic District in Frostburg may also be eligible for historic tax credit programs, preservation grants, and historic preservation loans. Learn more about funding opportunities for projects within the Historic District here.

Arts & Entertainment Grants & Tax Credits

The Maryland State Arts Council offers many funding opportunities for artists, arts-based nonprofits, and arts & entertainment venues within the district. Learn more about opportunities for independent artists here, and find information about opportunities for nonprofits here.

Want to know more? Visit the database of Maryland Financial Incentives for Businesses, or give us a call at 301-689-6000 ext. 105.