Governor Moore Announces Tax-Related Incentives to Spur Economic Development Through Arts and Entertainment

Published: 8/26/2025


ANNAPOLIS, MD — Governor Wes Moore today announced the redesignation of Berlin, Chestertown, Denton, and Grantsville as Arts and Entertainment Districts, allowing for the continuation of tax incentives that encourage economic development through arts and tourism. In FY 2024, visitor spending in these districts contributed to a total economic output of $136 million generated by the 29 designated districts statewide.

“Small business development in our rural towns and cities is vital to winning the decade,” said Gov. Moore. “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.”

Administered by the Maryland State Arts Council, the Arts and Entertainment Districts program was created in 2001 to provide local governments interested in encouraging arts activity with tools to incentivize artists to live, create, and sell work in their towns. By operating within Arts and Entertainment districts, property owners may be eligible for property tax credits, artists may be eligible for income tax subtraction modifications, and local governments may be exempt from admissions and amusement taxes. The resulting arts activity supports economic development by attracting businesses and tourists to communities across the state. 

To earn redesignation, districts must apply every ten years, demonstrating both progress toward economic development goals and a continued commitment to attracting and retaining arts activity. Today, Arts and Entertainment Districts can be found in 20 of Maryland’s 24 jurisdictions, including cities and towns of all sizes.                             

“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 Maryland State Arts Council Executive Director Steven Skerritt-Davis. “Redesignations are a chance to celebrate all that these districts have accomplished, and we look ahead to working alongside local leaders as they invest in the arts and see the benefits in their communities over the next decade.”

The Maryland State Arts Council within the Maryland Department of Commerce advances the arts by awarding grants to nonprofit organizations and individual artists. In addition to grantmaking, the Maryland State Arts Council also provides technical and advisory assistance statewide, ensuring every person has access to the transformative power of the arts. For more information about the Maryland State Arts Council, go to msac.org.

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