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Bill

HB 840

Property Tax - Credit for Commercial Buildings Rented to Small Businesses

2026 Regular Session Introduced by Luke Clippinger and 1 co-sponsor

Maryland property tax credit rewards commercial landlords who rent to small businesses below market rates, aiming to make affordable workspace more available.

Hearing 2/17 at 1:00 p.m.
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WeVote Research Nonpartisan
Bill Summary · HB 840

Legislative bill overview

HB 840 establishes a property tax credit for owners of commercial buildings who rent space to small businesses at below-market rates. The bill incentivizes landlords to offer affordable commercial real estate by providing tax relief proportional to the rent reduction they offer qualifying small businesses. This targets the gap between small business needs for affordable workspace and market-rate commercial rents.

Why is this important

Small businesses often struggle to afford commercial real estate in competitive markets, which can limit entrepreneurship and economic development in communities. Property tax credits that encourage affordable commercial rent could help startups and small firms access workspace they otherwise couldn't afford. However, the actual impact depends heavily on how the bill defines "small business," "below-market rates," and the size of the tax credit offered.

Potential points of contention

  • Definition ambiguity: The bill's effectiveness hinges on how "small business" and "below-market rent" are defined—overly broad definitions could reduce tax revenue with minimal benefit, while narrow ones may help few businesses
  • Revenue loss vs. economic benefit: Policymakers will debate whether foregone tax revenue produces sufficient small business growth and job creation to justify the cost
  • Landlord incentive adequacy: The tax credit may not be large enough to motivate landlords to accept lower rents, especially in high-value commercial areas, limiting practical uptake

Compiled from official sources — confirm details with the bill’s official record.

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