Design For Life Tax Incentives
The Montgomery County Department of Permitting Services (DPS) has launched a revised Design for Life (referred to as “DFL” or “Design for Life”) Incentive Program intended to increase the stock of visitable and livable housing in Montgomery County through tax incentives, promotion of Design for Life principles and businesses engaged in providing housing that meets Design for Life standards and through collaboration with stakeholder partners. The tax credits element of the program is authorized by Council Bill 5-13, Property Tax Credit- Accessibility Features. The bill details the property tax and impact tax credits of the Design for Life program which are intended to incentivize builders and property owners to install accessibility features in existing and new construction. A key objective of the Design for Life program is to increase the stock of existing and new residences usable by people of diverse abilities.
The enhanced program couples promotion of DFL projects, designers and builders with tax credits to help offset the cost of accessible improvements. Credits against School Impact Tax are available to help offset developer costs associated with providing visitable housing. Property tax credits are available for DFL improvements that make new housing achieve certain levels of accessibility and for accessible retrofits to an existing home. The program is structured to stimulate the demand for, production and marketing of accessible housing and to encourage homeowners/contractors to include DFL features by making accessible improvements more affordable.
Please review the following documents for a complete understanding of the Design For Life Tax Incentive Program.
- Bill 5-13 Property Tax Credit – Accessibility Features – legislation approved by the Montgomery County Council effective July 1, 2014.
- Proposed Executive Regulation 3-14 Design For Life Tax Incentives – explains how Bill 5-13 Property Tax Credit – Accessibility Features will be implemented. Included in this Executive Regulation are definitions, application and processing procedures for requesting property tax credits and Development Impact Tax for School Improvement credits and certification procedures for the same. This executive regulation also describes the purpose and procedures for the Design for life Builder/Homeowner and Project Certification Program.
- Disclosure of Availability of Property Tax Credits for Accessibility Improvements – template for seller and buyer of new single family residential real property in Montgomery County.
- Impact Tax Credit Certification Agreement – template tax credit agreement for builders constructing multiple single family dwellings meeting Level I Accessibility Standards.
- Application for Residential Building Permit – for Single Family Dwellings, Townhouses, Duplexes
- Application for Commercial Building Permit – for Multifamily Dwellings
- Building Permit – Supplemental Design For Life Application – submitted with application for Building Permit detailing proposed Design for Life Accessibility Features and/or Level I or II Accessibility Standards.
- Design for Life Technical Guidelines - manual that provides technical guidance on the design and inspection requirements for implementation of Bill 5-13 Property Tax Credit – Accessibility Features.
- Application for Design for Life Tax Credits – submitted to DPS after work has been inspected and the final inspection approved.