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Baltimore's CHAP Historic Tax Credit:
Appraisal Requirements & Process

Who orders the appraisal, what it must say, the 25% test and the credit math — explained in plain English by a 37-year Baltimore appraisal veteran

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Ed Drost · MD License #30004874 · CHAP Before & After Appraisals · 37+ Years Baltimore Experience
BaltimoresTrustedAppraiser.com › Free Resources › Baltimore CHAP Historic Tax Credit Guide
Quick answer
Baltimore's CHAP Historic Tax Credit is a 10-year City property tax credit that offsets the tax increase caused by a qualifying historic rehabilitation. It requires an appraisal with your initial application and a final appraisal within 90 days of completion. The City no longer provides these appraisals, so you hire a State of Maryland certified appraiser who meets the City's requirements, and no work may start until CHAP approves your application. Illustration: a home appraised at $250,000 before and $450,000 after is roughly $4,500 per year, or about $45,000 over 10 years (an estimate; the Department of Finance calculates the actual credit). Call Ed Drost at 443-904-5229 to get started.
ED

Written by Ed Drost · Maryland Certified Residential Appraiser · License #30004874

37+ years Baltimore City & County · CHAP Before & After Appraisals · Residential Appraisal Solutions, LLC · 443-904-5229

What Is the Baltimore CHAP Historic Tax Credit?

The Commission for Historical and Architectural Preservation — CHAP — administers Baltimore City's Historic Tax Credit for qualifying rehabilitations of landmark and historic-district properties. For 10 years after final certification, the credit offsets the increase in City property tax that results from the improvements.

In plain English: if your home is appraised at $250,000 before the project and $450,000 after it, the $200,000 increase is what the credit shelters. The City's Department of Finance does the actual calculation after CHAP certifies the work and the property is reassessed, and the credit appears on your tax bill as a “Special Credit.”

At the 2.248% City rate used in the City's own example (confirm the current rate), a $200,000 increase works out to about $4,496 a year, or roughly $45,000 over 10 years. Treat that as an estimate: values, rates and reassessments all change what the City ultimately applies.

CHAP Tax Credit — Illustrative Example
$250,000
Pre-rehabilitation appraised value (full cash value) — the baseline
$450,000
Post-rehabilitation appraised value — the $200,000 increase is what the credit offsets
≈ $45,000
Estimated 10-year credit at a 2.248% City rate (illustration only)
CHAP credit estimator
$62,50025% of pre-rehabilitation value (rehabilitation spend to reach)
$4,496Estimated annual credit
$44,960Estimated over 10 years

Estimate only. The Baltimore City Department of Finance calculates the actual credit after CHAP's final certification and the property's reassessment. Rates, assessments and values can change over the 10 years. Confirm the current City tax rate before relying on this figure.

Which Baltimore Neighborhoods Are Eligible?

To qualify, a property must be a Baltimore City Landmark or a contributing property in a historic district (CHAP's FAQ also lists the Baltimore National Heritage Area). The program covers dozens of neighborhoods, from the waterfront communities of the harbor to North Baltimore. If you are unsure whether your property qualifies, call CHAP at 410-396-4866 or call Ed Drost at 443-904-5229 for a quick read, but CHAP makes the final determination.

Hampden
Remington
Federal Hill
Fells Point
Canton
Highlandtown
Bolton Hill
Reservoir Hill
Mount Vernon
Charles Village
Waverly
Station North
Barclay
Greenmount West
Oliver
Johnston Square
Ednor Gardens
+ Many More
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Important: Do not start any work, interior or exterior, until CHAP has reviewed and approved your application. CHAP's FAQ states that approval must come before you begin any work, and projects started before approval are not eligible for the credit.
Step-by-Step Process

The 6-Step CHAP Historic Tax Credit Process

1

Verify Your Property Is in a CHAP-Eligible District

Before spending a dollar on renovation planning, confirm that your property is a City Landmark or a contributing property in a designated historic district. Contact the CHAP office at 410-396-4866 or visit 417 E. Fayette Street, Baltimore, MD 21202. You can also check the district maps online at chap.baltimorecity.gov.

Also check: Whether your property is individually designated (a City Landmark) versus contributing to a historic district. The review requirements can differ depending on designation type.
2

Order the Pre-Rehabilitation Appraisal

Before any work begins, hire a State of Maryland certified appraiser in good standing to appraise the property “as is.” The City no longer supplies this appraisal; you provide your own, and it goes in with your initial application. It sets the pre-rehabilitation value the City uses for the 25% test and the credit calculation.

★ Required — order it before any work begins
Why timing matters: Under the City's published rules, a project begun before the initial appraisal and CHAP's preliminary approval is not eligible without CHAP's express written permission.
3

Apply Online and Get CHAP's Preliminary Approval

Submit the online application (CHAP does not accept paper applications) with your plans, drawings and specifications. Interior and exterior changes are both submitted for review, and the work must meet the Secretary of the Interior's Standards for Rehabilitation — the federal standard for modifying historic properties while preserving their character. Wait for CHAP's preliminary approval before any work starts.

What CHAP reviews: Windows and doors, masonry, rooflines, additions, porches and other exterior changes visible from the street, plus the interior work included in your project. Ask CHAP staff how your specific scope will be reviewed.
4

Complete the Qualifying Rehabilitation

Complete your renovation according to the approved plans. The rehabilitation cost must reach 25% of the property's pre-rehabilitation full cash value, the figure established by your pre-rehabilitation appraisal (not the tax assessment). Document all work with dated photographs, contractor invoices, permits and inspection records throughout construction.

Documentation tip: Photograph every phase of the work — before, during and after each trade. CHAP reviewers and your final appraiser will need this documentation to confirm the scope and quality of the rehabilitation.
5

Order the Final Appraisal

Once all work is finished, have the certified appraiser value the completed property “as is.” For final certification, the appraisal must be completed within 90 days of the project's completion or the issuance of the use-and-occupancy permit, with the City of Baltimore Director of Finance as intended user and CHAP Tax Credit as intended use.

★ After all work is finished — within 90 days of completion or U&O
What the final appraisal documents: The post-rehabilitation market value and the rehabilitated improvements, in a USPAP-compliant report that supports the Department of Finance's credit calculation.
6

Submit Final Documentation and Get Final Certification

Submit the final appraisal, documentation of the completed work, invoices, permits and photographs through CHAP's online process. CHAP reviews the finished work against the approved scope and the Standards and, if approved, issues final certification.

After certification: The 10-year credit term begins. The Department of Finance calculates the credit (per the City's analysis, once the property is reassessed) and it appears on your tax bill as a “Special Credit.” Questions about the calculation go to the Department of Finance.
The Appraisal Requirement

What the CHAP Appraisal Must Include

CHAP has announced that the City no longer provides appraisals for the Historic Tax Credit; applicants must provide their own. An appraisal is part of the initial application and again of the final submission, and it has to meet the Department of Finance's specifications. The appraisal sets the baseline for both the 25% test and the credit calculation, so an automated estimate, an agent's opinion of value or a desktop opinion will not do.

The requirements CHAP lists for the appraisal:

  1. Completed by a State of Maryland certified appraiser in good standing.
  2. Completed in “as is” condition.
  3. For final certification, completed within 90 days of the project's completion or the issuance of the use-and-occupancy permit.
  4. Intended user stated as the City of Baltimore Director of Finance.
  5. Intended use stated as CHAP Tax Credit.

The Department of Finance's rules also reference a narrative market value appraisal report and a scope-of-work reporting checklist. Requirements and forms change, so confirm the current checklist with CHAP before you order.

① Pre-Rehabilitation Appraisal

  • Values the property “as is” before any work begins
  • Establishes the pre-rehabilitation baseline
  • Sets the full cash value used for the 25% test and the credit calculation
  • Must be completed before construction starts
  • Submitted with the initial CHAP application
  • Includes a full interior and exterior inspection

② Final Appraisal

  • Values the completed property “as is”
  • Measures the value added by the rehabilitation
  • Supports the Department of Finance's credit calculation
  • Completed after all work is finished
  • Within 90 days of completion or U&O
  • Submitted with the final CHAP submission
The 25% test, worked example. Pre-rehabilitation appraised value (full cash value): $250,000. 25% of that is $62,500. Your documented rehabilitation costs need to reach that figure; the City's current program page says they must exceed 25%, so budget a cushion. The test uses the appraised full cash value, not the SDAT assessment.
⚠
Already started work? Stop and contact CHAP at 410-396-4866 first. CHAP's FAQ says approval must come before any work begins, and the City's published rules indicate that a project begun before the initial appraisal and CHAP's preliminary approval is not eligible unless CHAP gives express written permission. A retrospective appraisal can document an earlier value, but it does not by itself restore eligibility. Call Ed Drost at 443-904-5229 if you need a value documented while you sort out next steps with CHAP.
Frequently Asked Questions

CHAP Historic Tax Credit — Common Questions

How much does the CHAP Historic Tax Credit actually save Baltimore homeowners?
The credit offsets the increase in City property tax that results from the rehabilitation, for 10 years after final certification. As an illustration, a home appraised at $250,000 before and $450,000 after a qualifying rehabilitation has a $200,000 increase. At the 2.248% City rate used in the City's own example, that is about $4,496 per year, or roughly $45,000 over 10 years. The Department of Finance calculates the actual credit from the appraisals, the tax rate in effect and the reassessment, so treat any figure as an estimate. The calculator on this page lets you try your own numbers.
What renovations qualify, and what is the 25% test?
Work must be approved by CHAP before it begins and must meet the Secretary of the Interior's Standards for Rehabilitation. The rehabilitation cost must also reach 25% of the property's pre-rehabilitation full cash value, which the pre-rehabilitation appraisal establishes; it is not the tax assessment. The City's current program page says the cost must exceed 25%, so plan with a margin. For a home appraised at $250,000, 25% is $62,500. Common qualifying work includes roof replacement, masonry repointing, window restoration or appropriate replacement, structural repairs, mechanical system upgrades, kitchen and bathroom rehabilitation, and foundation work. Additions may qualify if they meet the Standards and do not damage or destroy historic materials. Interior and exterior changes are both submitted to CHAP for review through the online application.
Can I apply for the CHAP Historic Tax Credit after I have already started or finished my renovation?
Generally no. CHAP's FAQ says the application must be reviewed and approved before any work begins, and the City's published rules indicate that a project begun before the initial appraisal and CHAP's preliminary approval is not eligible unless CHAP gives express written permission. If work has already started, stop and contact CHAP at 410-396-4866 before doing anything else. A retrospective appraisal can document an earlier value, but it does not by itself make a started project eligible.
Does the City provide the appraisal for the CHAP Historic Tax Credit?
No. CHAP has announced that the City no longer provides appraisals for the Historic Tax Credit, so applicants must hire a qualified appraiser and provide their own. An appraisal is part of the initial application and again of the final submission, and it must meet the Department of Finance requirements listed on this page.
Who can perform the CHAP appraisal, and what must it say?
Per CHAP's announcement, the appraisal must be completed by a State of Maryland certified appraiser in good standing, in as-is condition, with the City of Baltimore Director of Finance as the intended user and CHAP Tax Credit as the intended use. For final certification it must be completed within 90 days of project completion or issuance of the use-and-occupancy permit. Automated estimates and agent opinions of value do not meet these requirements. Requirements and forms change, so confirm the current checklist with CHAP before ordering.
Is the CHAP Historic Tax Credit the same as the Maryland Heritage Structure Rehabilitation Tax Credit?
No. The CHAP credit is a Baltimore City property tax credit. The Maryland Heritage Structure Rehabilitation Tax Credit is a separate state program that provides an income tax credit based on a percentage of qualifying expenditures. Each program has its own rules and application, so confirm eligibility and timing with each one before work begins.
How do I find out if my Baltimore home is in a CHAP-eligible historic district?
A property generally must be a Baltimore City Landmark or a contributing property in a Baltimore City or National Register historic district; CHAP's FAQ also lists the Baltimore National Heritage Area. Contact the CHAP office at 410-396-4866 or search your address at chap.baltimorecity.gov to confirm. Ed Drost can give you a quick read on your address at 443-904-5229, but CHAP makes the determination.
Official Sources

Check the Requirements Yourself

Program rules change. These are the City sources this guide was checked against on October 3, 2026; confirm current requirements with CHAP and the Department of Finance before you commit to a project.

Related on this site: Date-of-death appraisals for Baltimore City rowhomes and historic/CHAP properties · Appraisal cost guide · Top 31 appraisal questions

This page is general information, not legal or tax advice. The Baltimore City Department of Finance determines the credit; consult CHAP, the Department of Finance and your tax professional about your project.

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Last updated: October 2026 · Ed Drost · Maryland Certified Residential Appraiser · License #30004874