ANNAPOLIS, Md. — A state audit found that the Maryland Department of Planning failed to properly verify millions of dollars in historic tax credit claims and did not adequately monitor recipients to ensure compliance with program requirements.
The audit, released in April 2026 by the Maryland Office of Legislative Audits, reviewed the department’s fiscal operations from May 1, 2021, through September 15, 2025.
Auditors determined the agency did not consistently ensure that expenditures used to calculate Historic Revitalization Tax Credits were properly certified, as required under state law. In one example, two projects awarded a combined $3.3 million in tax credits lacked proper certification from a certified public accountant.
In one of those cases, a project involving approximately $15 million in reported expenses received a $3 million tax credit despite financial statements carrying a disclaimed opinion, meaning the accountant did not verify the underlying documentation. Another project’s financial documentation was certified by an accounting firm with no evidence of proper CPA credentials.
The audit also found the department did not monitor more than 1,100 completed projects to ensure they remained eligible for the credits. State law requires properties receiving the credits to maintain compliance for five years, with violations potentially triggering repayment of the tax benefit.
Because of the lack of oversight, auditors said they could not determine whether properties had undergone disqualifying changes during that period.
The Historic Revitalization Tax Credit program allows homeowners and businesses to claim credits ranging from 20% to 27.5% of qualified renovation expenses for historic properties. During the audit period, the department certified approximately $28.8 million in such credits.
The Maryland Department of Planning agreed with the audit’s findings and outlined corrective actions, including strengthening certification requirements, implementing review checklists, and developing procedures to monitor projects for compliance after completion.
Auditors said the proposed actions are sufficient to address the issues identified.
Read the full Maryland Department of Planning audit report below:
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