City of Rockville Tax Incentive Program

The Miller Bill is a property tax credit program offered through the City of Rockville for qualified new and expanding businesses. The program assists the city in bringing Class A office space to the market and in jumpstarting construction in the area; benefits go directly to the businesses creating new employment.

What is needed for tax credit eligibility?

• Offices: Construct or expand by at least 5,000 square feet of premises in the Town Center, by buying, building, or leasing new premises for office use above the first floor of the new premises, or by 60,000 square feet elsewhere in the city.



• Hotels: Construct or expand by at least 100,000 square feet of premises in the Town Center on which the business entity conducts business by buying, building, or leasing new premises for hotel use, or by 200,000 square feet elsewhere in the city.



• Employ at least 25 persons in new, permanent, full-time positions within the new or expanded premises in the city during a 2-year period.



• All credits are passed through to the tenants who are required to pay the city property tax.

What is the amount of tax credit?

The tax credit that a taxpayer may claim against the city real and personal property taxes is the following percentages of property tax imposed on the new or expanded premises:

• 52% first and second taxable years in which a credit is allowed.



• 39% third and fourth taxable years in which a credit is allowed.



• 26% fifth and sixth taxable years in which a credit is allowed.

A taxpayer also may claim a tax credit against certain state taxes (individual or corporate income tax, insurance premiums tax, or financial institution franchise tax) in the following percentages of property tax imposed on the new or expanded premises:

• 28% first and second taxable years in which credit is allowed.



• 21% third and fourth taxable years in which a credit is allowed.



• 14% for the last 2 taxable years in which a credit is allowed.

Contact REDI for further information on the Miller Bill property tax credit program.