An Act To
Maine Legislature, Session 123, LD 0262
Committee Amendment CA_B_H853 (House)
Amends: 27 MRSA §511, 36 MRSA §4641-B, 36 MRSA §5219-R, 36 MRSA §5219-B

COMMITTEE AMENDMENT ,13 " 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 §511 is enacted to read: 
§511. Support for state rehabilitation tax credits 
1. Program. The director shall 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 pursuant to 
Title 36, section 5219-BB. 
2. Certification. The director shall certify information necessary for applicants to 
demonstrate eligibility for an income tax credit under Title 36, section 5219-BB, 
including, but not limited to: 
A. That rehabilitations of certified historic structures are consistent with the United 
States Secretary of the Interior's Standards for Rehabilitation; 
B. That historic structures are listed in or are eligible for listing in the National 
Register of Historic Places or are in certified local districts; and 
C. The amount of qualified rehabilitation expenditures associated with each project 
for which an income tax credit will be claimed. 
When perfonning the certification required by this subsection, the director shall interpret 
the provisions of this subsection in a manner consistent with the provisions of the federal 
Internal Revenue Code, Section 47. 
3. Administration. The director may provide fOnTIs, instructions and guidelines 
necessary for an applicant to apply for certification under the program. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .b' to H.P. 218, L.D. 262 
4. Fees. The director may establish a schedule of processing fees, the proceeds of 
which must be used by the director solely for the support of the administration of 
certifications under this section. The processing fees collected by the director must be 
placed in a nonlapsing historic rehabilitation certification fund to be used solely by the 
director for the administration of certifications required under this section. 
5. Reports. The Maine Historic Preservation Commission shall issue the following 
reports. 
A. The Maine Historic Preservation Commission shall issue a report by March 1 st of 
each year that identifies the approved and certified state historic preservation 
certification applications and documents the number of affordable housing units 
created, total housing units created, number of affordable housing units preserved, 
total aggregate square footage rehabilitated and developed, total aggregate square 
footage of housing, total aggregate square footage of affordable housing, total 
certified rehabilitation expenses and total new construction expenses. 
B. By January 15, 2013, the Maine Historic Preservation Commission shall analyze 
the use of tax credits provided under Title 36, section 5219-BB as an incentive for 
rehabilitation of historic structures and economic development, analyze tax and other 
revenues generated by the rehabilitation to determine in relation to the cost of the 
credit if they exceed the costs of the credit 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 Title 36, section 5219-BB 
should be extended, repealed or amended. The joint standing committee may submit 
legislation related to the report. 
Sec. 2. 36 MRSA §4641-B, sub-§4, as amended by PL 2007, c. 240, Pt. H, §l 
and c. 427, §I, is repealed and the following enacted in its place: 
4. Distribution of State's share of proceeds. The State Tax Assessor shall pay all 
net receipts received pursuant to this section to the Treasurer of State and shall at the 
same time provide the Treasurer of State with documentation showing the amount of 
revenues derived from the tax imposed by section 4641-A, subsection I and the amount 
of revenues derived from the tax imposed by section 464I-A, subsection 2. 
A. The Treasurer of State shall credit 112 of the revenues derived from the tax 
imposed by section 464 I -A, subsection 1 to the General Fund and shall monthly pay 
the remaining 112 of such revenues to the Maine State Housing Authority, which 
shall deposit the funds in the Housing Opportunities for Maine Fund created in Title 
30-A, section 4853, except that: 
(I) 
In fiscal year 2003-04, fiscal year 2004-05 and fiscal year 2005-06, 
$7,500,000 of the remaining 112 of those revenues must be transferred to the 
General Fund before any payments are made to the Maine State Housing 
Authority; 
(2) In fiscal year 2006-07, $7,687,067 of the remaining 112 of those revenues 
must be transferred to the General Fund before any payments are made to the 
Maine State Housing Authority; 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT:.8" t. H.P. 218, 1"0.262 
(3) In fiscal year 2007-08 and fiscal year 2008-09, $5,000,000 of the remaining 
of those revenues must be transferred to the General Fund before any 
payments are made to the Maine State Housing Authority; 
( 4) In fiscal year 2008-09, $90,000 of the remaining 112 of those revenues must 
be transferred to the General Fund before any payments are made to the Maine 
State Housing Authority; 
(5) In fiscal year 2009-10, $3,320,000 of the remaining 1/2 of those revenues 
must be transferred to the General Fund before any payments are made to the 
Maine State Housing Authority; 
(6) In fiscal year 2010-11, $3,720,000 of the remaining 112 of those revenues 
must be transferred to the General Fund before any payments are made to the 
Maine State Housing Authority; 
(7) In fiscal year 2011-12, $3,830,000 of the remaining 1/2 of those revenues 
must be transferred to the General Fund before any payments are made to the 
Maine State Housing Authority; and 
(8) In fiscal year 2012-13, $3,950,000 of the remaining 112 of those revenues 
must be transferred to the General Fund before any payments are made to the 
Maine State Housing Authority. 
B. Neither the Governor nor the Legislature may divert the revenues payable to the 
Housing Opportunities for Maine Fund to any other fund or for any other use. Any 
proposal to enact or amend a law to allow distribution of less than 1/2 of the revenues 
derived from the tax imposed by section 4641-A, subsection 1 to the Housing 
Opportunities for Maine Fund, as adjusted under paragraph A, must be submitted to 
the Legislative Council and to the joint standing committee of the Legislature having 
jurisdiction over affordable housing matters at least 30 days prior to any vote or 
public hearing on the proposal. 
C. The Treasurer of State shall credit to the General Fund all of the revenues derived 
from the tax imposed by section 4641-A, subsection 2. 
Sec. 3. 36 MRSA §5219-R, suh-§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 3 1, 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. 4. 36 MRSA §5219-BB is enacted to read: 
COMMITTEE AMENDMENT 
COMMITI'EE AMENDMENT:1!>- t. H.P. 218, L.D. 2<;2 
§5219-BB. Credit for rehabilitation of historic properties after 2007 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Affordable housing" means a decent, safe and sanitary dwelling, apartment or 
other living accommodation for a household whose income does not exceed 60% of 
the median income for the area as defined by the United States Department of 
Housing and Urban Development under the United States Housing Act of 1937, 
Public Law 412,50 Stat. 888, Section 8, as amended. 
B. "Certified historic structure" means a structure that has been certified as a historic 
structure under Title 27, section 511. 
C. "Certified qualified rehabilitation expenditure" means a qualified rehabilitation 
expenditure made between January I, 2008 and December 31, 2013 certified by the 
director under Title 27, section 511. For purposes of subsection 2, paragraph B, 
qualified rehabilitation expenditures incurred in the certified rehabilitation of a 
certified historic structure located in the State do not include a requirement that the 
certified historic structure be substantially rehabilitated. 
D. "Director" means the director of the Maine Historic Preservation Commission. 
2. Credit allowed. A taxpayer is allowed a credit against the tax imposed under this 
Part; 
A. Equal to 25% of the taxpayer's certified 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; or 
B. Equal to 25% of the certified qualified rehabilitation expenditures of a taxpayer 
who incurs not less than $50,000 and up to $250,000 in certified 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 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. 
A taxpayer is allowed a credit under paragraph A or B but not both. 
3. Increased credit for affordable housing. The credit allowed under this section 
is increased to 30% of certified qualified rehabilitation expenditures if the project is also 
an affordable housing project. The 30% credit is available only for projects for which at 
least 50% of the aggregate square feet of the completed project is housing of which at 
least 50% of the aggregate square feet of the completed housing creates new affordable 
housing or for which at least 33% of the aggregate square feet of the completed project 
creates new affordable housing. Affordable housing created using the 30% credit must 
remain affordable for 30 years pursuant to a mechanism acceptable to the Maine State 
Housing Authority. The mechanism must provide that if the property does not remain 
affordable for 30 years, the owner of the property must pay to the Housing Opportunities 
for Maine Fund under Title 30-A, section 4853 an amount equal to the credit increase 
allowed to the taxpayer under this subsection plus interest at the rate of 7% per annum 
beginning when the property is placed in service and ending upon payment. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT~" to H.P. 218. L.D. 2<>2 
By August 1, 2009 and annually every August 1st thereafter to 2013, the Maine Historic 
Preservation Commission and the Maine State Housing Authority shall review the report 
issued pursuant to Title 27, section 511, subsection 5, paragraph A to determine the 
percentage of the total aggregate square feet rehabilitated and developed using both the 
25% credit under subsection 2 and the 30% credit under this subsection that constitutes 
new affordable housing. If the total aggregate square feet of new affordable housing does 
not equal or exceed 30% of the total aggregate square feet of rehabilitated and developed 
completed projects eligible for a credit under this section, the commission and the 
authority shall notify the State Tax Assessor and the credit authorized in subsection 2, 
paragraph B is increased by 1 % for that tax year and for each succeeding year in which 
the 30% affordable housing threshold is not reached until a maximum credit rate of 35% 
is reached. 
4. Maxim urn credit. The credit allowed pursuant to this section may not exceed 
$5,000,000 for each certified rehabilitation project 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. 
5. 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. 
6. Credit refundable. The credit allowed under this section is fully refundable. 
7. 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 I or pursuant to an executed agreement among the partners, members 
or owners documenting an alternate allocation method. 
8. 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. 
9. 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. 5. 
Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services - Bureau of 0002 
Initiative: Provides one-time funds for the computer programming costs associated with 
the tax credit for the rehabilitation of historic properties. 
GENERAL FUND 
All Other 
2007-08 
$0 
COMMITTEE AMENDMENT 
2008-09 
$44,000 
COMMIITEE AMENDMENT:!)" to H.P. 218, L.D. 262 
GENERAL FUND TOTAL 
ADMINISTRATIVE AND FINANCIAL 
SERVICES, DEPARTMENT OF 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL-ALL FUNDS 
HISTORIC PRESERVATION COMMISSION, MAINE 
Historic Commercial Rehabilitation Fund N029 
$0 
$44,000 
2007-08 
2008-09 
$0 
$44,000 
$0 
$44,000 
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 
HISTORIC PRESERV A TION COMMISSION, 
MAINE 
DEPARTMENT TOTALS 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT TOTAL-ALL FUNDS 
SECTION TOTALS 
GENERAL FUND 
OTHER SPECIAL REVENUE FUNDS 
SECTION TOTAL - ALL FUNDS 
2007-08 
$0 
$0 
2007-08 
$0 
$0 
2007-08 
$0 
$0 
$0 
COMMITTEE AMENDMENT 
2008-09 
$500 
$500 
2008-09 
$500 
$500 
2008-09 
$44,000 
$500 
$44,500 
COMMITTEE AMENDMEN~ • to H.P. 218, 1.0. U2 
SUMMARY 
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 qualified 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 qualified expenditures if the taxpayer expended 
from $50,000 to $250,000 on a certified historic structure. This amendment also provides 
for a historic rehabilitation tax credit of 30% for qualified projects that create new 
affordable housing and provides for a ramp-up from 30% to 35% if the affordable 
housing goal is not achieved. 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 is required to certify qualifying projects and 
expenditures and to submit reports related to the use of the credit to the joint standing 
committee of the Legislature having jurisdiction over taxation matters by January 15, 
2013. 
FISCAL NOTE REQU1RED 
(See Attached) 
COMMITTEE AMENDMENT 
Approved: 03/25/08 MaC 
LD262 
LR 673(04) 
An Act To Amend the Credit for Rehabilitation of Historic Properties 
Fiscal Note for Bill as Amended by Committee Amendment:fJ " 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
2007-08 
2008-09 
Projections 
2009-10 
Projections 
2010-11 
Net Cost (Savings) 
General Fund 
$0 
$41,098 
($2,585,596) 
($1,504,642) 
Appropriations/Allocations 
General Fund 
Other Special Revenue Funds 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
$0. 
$0 
$0 
$0 
$44,000 
$500 
$2,902 
($94,778) 
$0 
$500 
$2,585,596 
($3,360,284) 
$0 
$500 
$1,504,642 
($3,841,518) 
The General Fund income tax loss associated with the credit for the rehabilitation of historic properties is estimated to 
be $87,098 in fiscal year 2008-09, $734,404 in fiscal year 2009-10 and $2,215,358 in fiscal year 20 I 0-11. The 
estimated cost of th is credit outside the forecast period is $6,600,000 in fiscal year 2011-12, $10,800,000 in fiscal year 
2012-1 J and $14,400,000 in fiscal year 2013-14. 
This bill also amends the distribution of real estate transfer tax proceeds, increasing General Fund revenue by $90,000 
in fiscal year 2008-09, by $3,320,000 in fiscal year 2009-10 and by $3,720,000 in fiscal year 20 I 0-11, resulting in a 
correspDnding decrease in Other Special Revenue Funds dedicated to the Housing OpPoliunities for Maine Fund. 
The bill includes a one-time General Fund appropriation of $44,000 in fiscal year 2008-09 for the computer 
progralllming costs assoc iated with the income tax credit. 
The bill includes an Other Special Revenue Funds base allocation of $500 in fiscal year 2008-09 for the costs to the 
Maine I-listoric Preservation Commission associated with administering the tax credit program that will be offset by 
the provision in the bill that allows for the establishment of processing fees to be used to SUppOIi the administration of 
the pro~ram' 
Prov isiolls of this bill are also included ill Committee Amendment "A" and Committee Amendment "B" to LD 2173, 
the Gmernor's 2008-2009 Supplemental Budget. 
LR0673(04) - Fiscal Note - Page I of 1