ANNAPOLIS, MD—Maryland Governor Wes Moore this week announced that four communities have been redesignated as Arts and Entertainment Districts, ensuring they can continue to use tax incentives to spur economic development through arts and tourism.
The communities — Berlin, Chestertown, Denton, and Grantsville — were certified for another 10 years in the statewide program. The designation allows for various tax benefits for artists, property owners, and local governments within the districts.
“Small business development in our rural towns and cities is vital to winning the decade,” Moore said. “The A&E Districts program has a proven track record, showing that state and local investments in the arts not only improve the quality of life for Marylanders, but also lay a foundation for entrepreneurship to thrive.”
Economic Impact
The Arts and Entertainment Districts program, established in 2001, provides a range of tax incentives to encourage artists and arts-related businesses to operate in designated areas. In fiscal year 2024, visitor spending in the state’s 29 districts generated a total economic output of $136 million.
The Maryland State Arts Council (MSAC) administers the program. Property owners in the districts may be eligible for property tax credits, while artists can receive income tax subtraction modifications. Local governments may also be exempt from admissions and amusement taxes. These benefits are intended to attract creative activity that, in turn, draws businesses and tourists.
“These communities show us how the arts can bring people together, support local businesses, and shape the sense of place that makes Maryland vibrant,” said MSAC Executive Director Steven Skerritt-Davis.
Redesignation Process
To be redesignated, a district must apply every 10 years, demonstrating both progress toward economic development goals and a sustained commitment to fostering the arts.
Arts and Entertainment Districts can now be found in 20 of Maryland’s 24 jurisdictions, including cities and towns of varying sizes. The MSAC provides grants and technical assistance to support the arts statewide.
