Maryland legislators demonstrated their confidence in the arts as an economic generator with the passage of Senate Bill 586, SmART Growth - Arts and Entertainment Districts. Introduced by Senator Barbara Hoffman (D- Baltimore City) with House efforts led by Delegate Joan B. Pitkin (D- Prince George's), the Bill passed with overwhelming support.

The Bill aims to encourage the creation of cultural arts districts by offering tax breaks and state aid to artists and arts-related activity that occurs within a designated district. The Secretary of the Department of Business and Economic Development (DBED) has the authority to designate districts within a county or municipal corporation for areas "distinguished by physical and cultural resources which play a vital role in the life and development of the community." Explaining her reasons for pursuing this bill Senator Hoffman stated, "I firmly believe and advocate that the arts are not only for your personal entertainment and growth. They're also one of the major economic development engines of the state."

The Bill's tie to Smart Growth connects the arts with broader state goals by bolstering the quality of life through the creation of hubs of cultural activity. SB 586 offers artists and arts organizations (both for profit and nonprofit) the following incentives:

• A property tax credit for the renovation of existing buildings (for up to ten years) against the county or municipal corporation property tax,
• An exemption from local admissions and amusement taxes, and
• Eligibility for funding under the Maryland Economic Development Assistance and Authority Fund within DBED

Earlier versions of the Bill included a provision giving qualifying residing artists an income tax break on the sale of work within a designated district.