Maryland Awards $18 Million in Historic Tax Credits

Nine statewide projects, including Frostburg's Diamond Building and the Castle at Mount Savage, will share the historic revitalization credits.

Updated on Nov. 6, 2026 in Home Renovation

Weathered red-brick historic building facade under restoration scaffolding, set against forested ridges in western Maryland. — Maryland awarded $18 million in historic revitalization tax credits to nine projects, including Frostburg's Diamond Building and the Castle at Mount Savage. AI Illustration. Upload story photo >

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Maryland selected nine projects to receive a combined $18 million in historic revitalization tax credits. The Diamond Building in Frostburg and The Castle at Mount Savage in Allegany County were among the selected projects.

Why it matters

The Maryland Historic Revitalization Tax Credit Program encourages private investment in rehabilitating and reusing historic buildings across the state. The awards aim to bring vacant and underused properties back into productive service in communities statewide.

The Diamond Building received $997,972 toward a nearly $4 million renovation, and The Castle at Mount Savage received $2 million toward an estimated $8 million project. Sixteen applicants requested $30 million, leaving most requests unfunded relative to the more than $158 million in total estimated costs.

The players

Diamond Building

A historic commercial building on East Main Street in Frostburg whose upper levels have sat vacant for at least a decade.

The Castle at Mount Savage

A historic estate in Allegany County that most recently operated as a bed and breakfast before falling out of service.

The details

The Diamond Building project will upgrade ground-floor commercial tenant spaces and add apartment units on its upper two floors, which have been vacant for at least a decade. The Castle at Mount Savage project will fund upgrades, structural repairs, and new meeting space in vacant secondary buildings.

Early 20th century: Diamond Building constructed on East Main Street in Frostburg.
Around 1870: Construction began on The Castle at Mount Savage.
1909: The Castle's mansion house was expanded.
November 6, 2026: Tax credit awards announced for nine statewide projects.

Program Context

The awards continue the Maryland Historic Revitalization Tax Credit Program, which channels state tax incentives into private rehabilitation of historic buildings. This round funds nine projects, drawing on more than $85 million in additional investment.

Owners of historic buildings in Maryland can review the state's historic revitalization tax credit program to assess whether a rehabilitation project may qualify. Residents interested in nearby revitalization can track progress on projects like the Diamond Building as renovations proceed.

The takeaway

Historic tax credits can make rehabilitating older buildings financially viable when renovation costs are high. For property owners, early review of program eligibility can shape project feasibility.