An Act To
Maine Legislature, Session 123, LD 0262
Committee Amendment CA_A_H595 (House)
Amends: 27 MRSA §505, 36 MRSA §5219-R, 36 MRSA §5219-B

COMMITTEE AMENDMENT "fj" to H.P. 218, L.D. 262, Bill, 
Amend the Credit for Rehabilitation of Historic Properties" 
"An Act To 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 27 MRSA §505, sub-§2, ~ 
is enacted to read: 
E. 
The director may administer. in consultation with the Department of 
Administrative and Financial Services. Bureau of Revenue Services, a program in 
support of state rehabilitation tax credits for income-producing historic structures. 
The program must contain the following elements. 
(1) The director shall certify that historic structures are listed in or are eligible 
for listing in the National Register of Historic Places or are in certified local 
districts. 
(2) A historic structure is a building listed in the National Register of Historic 
Places. 
(3) The director shall certify that rehabilitations of certified historic structures 
are consistent with the United States Secretary of the Interior's Standards for 
Rehabilitation. 
(4) Qualified rehabilitation expenditures are those that are defined in Section 47 
of the federal Internal Revenue Code. 
(5) 
The director shall generate and update as necessary a state historic 
preservation certification application. 
(6) The director may establish a schedule of processing fees. the proceeds of 
which may be used by the director solely for the support of the administration of 
certifying rehabilitations of certified historic structures. 
COMMITTEE AMENDMENT 
., . 
... 
COMMI'ITEE AMENDMENT·A "to H.P. 218, L.D. 262 
(7) The processing fees collected by the director must be placed in a nonlapsing 
historic commercial rehabilitation fund to be used solely by the director for the 
administration of certifying rehabilitations of certified historic structures. 
(8) By January 15, 2013, the Maine Historic Preservation Commission shall 
conduct an analysis of the use of tax credits provided under Title 36, section 
5219-BB as an incentive for rehabilitation of historic structures and economic 
development and report the results of its analysis to the joint standing committee 
of the 
Legislature 
having 
jurisdiction 
over 
taxation 
matters 
with 
recommendations as to whether the credits under section 5219-BB should be 
extended, repealed or amended. 
The joint standing committee may submit 
legislation related to the report. 
Sec. 2. 36 MRSA §5219-R, sub-§l, as enacted by PL 2005, c. 519, Pt. H, §1, is 
amended to read: 
1. Credit allowed. A taxpayer is allowed a credit against the tax imposed under this 
Part equal to the amount of credit claimed by the taxpayer for the taxable year under 
Section 47 of the Code with respect to expenditures incurred after December 31, 1999 for 
a certified historic structure located in the State. The credit is nonrefundable and is 
limited to $100,000 annually per taxpayer. A credit received under this section is subject 
to the same recapture provisions, as apply to a credit received under Section 47 of the 
Code and to any available federal carry-back or carry-forward provisions. A credit may 
not be claimed under this subsection for expenditures incurred after December 31, 2007. 
Sec. 3. 36 MRSA §5219-BB is enacted to read: 
§5219-BB. Credit for rehabilitation of historic properties after 2007 
1. Credit allowed. A taxpayer is allowed a credit against the tax imposed under this 
Part for either of the following. 
A. A taxpayer is allowed a credit against the tax imposed under this Part equal to 
25% of the taxpayer's qualified rehabilitation expenditures for which a tax credit is 
claimed under Section 47 of the Code for a certified historic structure located in the 
State. 
Eligible qualified rehabilitation expenditures are those taken into account 
under Section 47 of the Code, except that a credit may not be claimed for 
expenditures incurred prior to January 1, 2008 or after December 31, 2013. 
B. A taxpayer who incurs not less than $50,000 and up to $250,000 in qualified 
rehabilitation expenditures in the rehabilitation of a certified historic structure located 
in the State and who does not claim the federal credit with regard to those 
expenditures may claim a credit against the tax imposed under this Part equal to 25% 
of those expenditures. The credit may be claimed for the taxable year in which the 
certified historic structure is placed in service, except that a credit may not be claimed 
for expenditures incurred before January 1, 2008 or after December 31, 2013. For 
pumoses of this paragraph. 
"qualified 
rehabilitation expenditures" means 
expenditures incurred in the certified rehabilitation of a certified historic structure 
located in the State but does not include a requirement that the certified historic 
structure be substantially rehabilitated. 
COMMITTEE AMENDMENT 
~ .fi>. 
COMMITTEE AMENDMENT" A 
.. to H.P.lIB, J.D. U2 
2. Maximum credit. The credit allowed pursuant to this section may not exceed 
$5,000,000 for each certified rehabilitation under Section 47 of the Code placed into 
service in the State during the taxable year for which a credit is claimed under this 
section. 
3. Timing of credit. Twenty-five percent of the credit allowed pursuant to this 
section must be taken in the taxable year the property is placed into service and 25% must 
be taken in each of the next 3 taxable years. 
4. Credit refundable. The credit allowed under this section is fully refundable. 
5. Allocation of credit. Credits allowed to a partnership, a limited liability company 
taxed as a partnership or mUltiple owners of property must be passed through to the 
partners, members or owners respectively pro rata in the same manner as under section 
5219-G, subsection 1 or pursuant to an executed agreement among the partners, members 
or owners documenting an alternate allocation method. 
6. Recapture. A credit received under this section is subject to the same recapture 
provisions as apply to a credit received under Section 47 of the Code. 
7. Limitation. A taxpayer who is eligible to claim a credit under section 5219-R, 
whether or not a credit is actually claimed, may not claim a credit under this section. In 
addition, a credit may not be claimed under this section with respect to expenditures 
incurred for rehabilitation of Building No.2 in the Lockwood Mill Historic District in the 
City of Waterville. 
Sec. 4. Appropriations and allocations. The following appropriations and 
allocations are made. 
HISTORIC PRESERVATION COMMISSION, MAINE 
Historic Commercial Rehabilitation Fund N029 
Initiative: Establishes a base allocation for the Historic Commercial Rehabilitation Fund 
to support the administration costs associated with certifying rehabilitations of certified 
historic structures. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
SUMMARY 
2007-08 
$0 
$0 
2008-09 
$500 
$500 
This amendment changes future historic rehabilitation tax credits a taxpayer may take 
if the taxpayer received a credit under the United States Internal Revenue Code from an 
amount equal to the credit the taxpayer received under the Code to an amount equal to 
25% of the expenditures incurred. This amendment also allows a historic rehabilitation 
tax credit for a taxpayer who did not receive a credit under the United States Internal 
Revenue Code of 25% of expenditures if the taxpayer expended from $50,000 to 
COMMITTEE AMENDMENT 
'" .. '" 
COMMITTEE AMENDMENT .. ~" to H.P. 218, L.n. 262 
$250,000 on a certified historic structure. This amendment makes the credit refundable 
and authorizes the State Historic Preservation Officer to establish a schedule of fees for 
certifying the historic structures and certifying rehabilitations in the State, the proceeds of 
which will go to administering the program. The amendment sunsets the credit in 2013. 
The Maine Historic Preservation Commission shall submit an analysis of the use of the 
credit to the joint standing committee of the Legislature having jurisdiction over taxation 
matters by January 15,2013. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 06/07/07 ;tyae 
LD262 
LR 673(02) 
An Act To Amend the Credit for Rehabilitation of Historic Properties 
Fiscal Note for Bill as Amended by Committee Amendment .'It .. 
Committee: Taxation 
Fiscal Note Required: Yes 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
Other Special Revenue Funds 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note 
2007-08 
$0 
$0 
$0 
$0 
2008-09 
$87,097 
$500 
($87,097) 
($4,278) 
Projections 
2009-10 
$725,517 
$500 
($725,517) 
($39,296) 
Projections 
2010-11 
$2,124,112 
$500 
($2,124,112) 
($116,013) 
Expanding future historic rehabilitation tax credits will reduce General Fund revenue by an estimated $87,097 in fiscal 
year 2007-08 and $725,517 in fiscal year 2008-09. The cost of the bill outside of the forecast period is estimated to be 
$6,300,000, $10,300,000 and $13,700,000 in fiscal years 2011-12, 2012-13 and 2013-14, respectively. 
This bill includes an Other Special Revenue Funds base allocation of $500 in fiscal year 2008-09 for the costs to the 
Maine Historic Preservation Commission associated with administering the tax credit program that will be offset by 
the provision in the bill which allows for the establishment of processing fees to be used to support the administration 
of the program. 
LR0673(02) - Fiscal Note - Page 1 of 1