A&E District Designation Grant

The Maryland State Arts Council (MSAC), an agency of the Maryland Department of Commerce, oversees the Arts & Entertainment (A&E) District designation program. Established through legislation in 2001, the program was one of the first of its kind in the United States and has since designated 29 districts across Maryland. The purpose of the program is to foster economic revitalization and cultural development through the recognition and support of geographic areas with strong arts and entertainment activity. MSAC is supported by state appropriations, grants from the National Endowment for the Arts, and other sources, and provides technical assistance, operating support grants, and designation guidance to participating districts. The A&E District Designation program provides counties and municipalities with tools and incentives to encourage activity and investment in specific geographic areas where the arts form part of an economic development strategy. Benefits to designated districts include locally determined property tax credits for the creation or renovation of live-work and arts enterprise spaces, income tax subtraction modifications for qualifying residing artists who derive income from work created and sold within the district, and exemptions from the Admissions and Amusement tax. Additionally, designated districts gain access to MSAC’s A&E District Operating Support Grant program. These benefits collectively aim to make the arts an integral driver of local economies, community vitality, and tourism. Eligibility for designation is limited to Maryland counties and municipal corporations. County applicants must demonstrate intent to provide property tax credits and Admissions and Amusement tax exemptions and, if a proposed district overlaps a municipal boundary, must secure written consent from that municipality. Municipal applicants must obtain acknowledgment from their county government and outline the property tax credits they will provide. Joint applications from two or more political subdivisions are permitted if the proposed district spans shared boundaries. In addition to these structural requirements, applicants must demonstrate a concentration of cultural assets, integration with revitalization plans, infrastructure and accessibility to support growth, local resource commitments, clear measurable goals, and sound financial and management capacity. The application process begins with a pre-application phase. Applicants are encouraged to meet with MSAC staff, then submit an Intent to Apply through Smart Simple, the Council’s grants management platform. Required information includes proposed district name, description of arts goals, lists of assets, statements regarding housing or creative space potential, proposed management structures, and boundary maps. Applicants are also expected to outline anchor attractions, cultural enterprises, and festivals. Submitted materials are reviewed by MSAC staff and the A&E Districts Advisory Committee, and, if eligibility is confirmed, a district tour and consultation are conducted. Successful pre-application participants are invited to submit full applications. The full application requires extensive supporting materials, including endorsement by chief elected officials, evidence of incentives such as passed resolutions for tax credits, maps, building inventories, and letters from local attorneys certifying compliance. Applicants must also submit a five-year plan outlining goals, strategies, timelines, and management structures, as well as a marketing plan. A budget specific to district activities must be included, alongside any supporting reports or optional images. Applications are reviewed internally and by the Advisory Committee, after which recommendations are submitted to the Secretary of Commerce. The Secretary may approve designations for up to ten years, with no more than one designation per county per year and no more than six new designations statewide annually. Deadlines are fixed and recurring. For FY 2025, Intent to Apply deadlines are January 1, 2025, and September 2, 2025, with full applications due April 1, 2025, and October 1, 2025. Applications submitted by April 1 will be reviewed in April and May, with notifications by June 1. Applications submitted by October 1 will be reviewed in October and November, with notifications issued December 1. If designated, the Secretary of Commerce will notify the Comptroller by July 1, establishing the effective date of the designation, with income tax benefits beginning January 1 of the following year. For guidance and technical assistance, applicants are directed to contact David D. Mitchell, Program Director, County Arts Development and Arts & Entertainment Districts, at david.mitchell1@maryland.gov or 443-934-0544. Additional grants logistics and technical support may be obtained from Catherine Teixeira, Grants Director, at catherine.teixeira@maryland.gov, or from MSAC grants associates listed in the guidelines.