The law states that if a business expects to receive a property tax credit for the next taxable year beginning on July 1 when the tax bill is actually issued, then the local Zone administrator must certify to the Department of Assessments and Taxation the qualifying eligibility of a particular business by no later than the end of the preceding calendar year on December 31. Certification letters from a zone administrator must mention the qualifying date and the first year July 1 credit date.

Example 1. ABC Corporation applies to the local Zone administrator on November 1, 2015. The administrator certifies ABC's eligibility to the Department of Assessments and Taxation on December 30, 2015. ABC completes its capital improvements on May 1, 2016. ABC is eligible for a property tax credit on the next July 1, 2016 tax bill when the first taxes will have been levied on the new improvements.

Example 2. XYZ Corporation applies to the local Zone administrator on January 31, 2016. The administrator certifies XYZ's eligibility to the Department on February 1, 2016. XYZ also completes its capital improvements on May 1, 2016. XYZ Corporation will not be eligible for the Enterprise Zone property tax credit on the next July 1, 2016 tax bill when taxes are first levied on the new improvements but must wait until the following July 1, 2017 tax bill because certification of the eligibility came after December 31, 2015.
 
Example 3. NOP Corporation applies to the local Zone administrator on June 1, 2016. The administrator certifies NOP's eligibility to the Department on July 1, 2016. NOP completes its capital improvements on October 1, 2016 and a one-half tax year bill for the new improvements is issued to NOP on January 1, 2017. NOP will not be eligible for the tax credit on January 1, 2017 half-year levy but must wait to receive the credit until the next full year's tax bill is issued on July 1, 2017.

 Apart from the fact that a business must be certified as qualifying by the end of the calendar year preceding the next taxable year on July 1, the granting of an Enterprise Zone property tax credit also is affected by the timing of the completion of capital improvements and the assessment of these improvements.


PARTIAL YEAR CREDIT

 Businesses which receive three-quarter, one-half, or one-quarter year tax bills because the capital improvements are not assessed for the first time by the Department of Assessments and Taxation until after July 1 must wait to receive the property tax credit until the following July 1 tax bill unless a business attempts to enact Tax Property Article §9-103(e)(1)(ii). If both the Department of Commerce and the local County Finance office approve partial year credit, the calculation would be the same but an additional multiplier of the partial year % will be added.

Example 3 (Above with Base Year and Partial Year Credit Approval). NOP Corporation applies to the local Zone administrator on June 1, 2016. The administrator certifies NOP's eligibility to the Department on July 1, 2016. NOP completes its capital improvements on October 1, 2016 and a one-half tax year bill for the new improvements is issued to NOP on January 1, 2017. If NOP is approved by both the Department of Commerce and the Local County Finance office to receive the credit during the initial base year and the local County Finance office allows partial year credits, NOP would be able to receive a credit of 80% x ½ of the eligible assessment for 2016 and the base year for calculation would be July 1, 2015.