What are the qualifications for the state Income tax benefit?

To qualify for the state income-tax benefit, an artist must:

  • own or rent residential property in Maryland,
  • create artistic work in any of the State’s 24 A&E Districts,
  • and have generated income from the sale or performance of that artwork within this or another Maryland A&E District.

The tax deduction is actually an income tax “subtraction modification.”  That means that artists who create and sell work within the districts are not taxed by the State on the income derived from those sales.  Also exempt from the State tax is work created in the District and sold through the Internet, or by mail order or catalogs, so long as the work is shipped from within an A&E District.

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