An Act To Eliminate the Sunset Date of the Maine Historic Preservation Tax Credit ./' -I I
Maine Legislature, Session 125, LD 0742
Committee Amendment CA_A_S89 (Senate)
Amends: 27 MRSA §511, 30-A MRSA §4722, 30-A MRSA §4863, 36 MRSA §2531, 36 MRSA §4641-B, 36 MRSA §5219-B

COMMITTEE AMENDMENT " A." to S.P. 235, L.D. 742, Bill, "An Act To 
Eliminate the Sunset Date of the Maine Historic Preservation Tax Credit" 
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Amend the bill by striking out the title and substituting the following: 
"An Act To Amend the Maine Historic Preservation Tax Credit' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 27 MRSA §511, sub-§5,,-B, as enacted by PL 2007, c. 539, Pt. WW, §l, 
is amended to read: 
B. By January 15,2013 and every 2 years thereafter, 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credits under Title 36, section 5219-BB should be extended, repealed or amended.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 recommendations must include specific proposals for funding the credit after 
fiscal year 2014-15 and appropriate transition provisions in order that projects in the 
development or planning states are not adversely affected. 
The joint standing 
committee may submit legislation related to the report. 
Sec. 2. 30-A MRSA §4722, sub-§l, ~D, as enacted by PL 2009, c. 361, §4 and 
affected by §37, is amended to read: 
DD. Certify affordable housing projects for the purpose of the income tax credit 
increase under Title 36, section 5219-BB, subsection 3; administer and enforce the 
affordability requirements set forth in this paragraph; and perform other functions 
described in this paragraph and necessary to the powers and duties described in this 
paragraph. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A" to S.P. 235, L.D. 742 
(1) For purposes of this paragraph, unless the context otherwise indicates, the 
following terms have the following meanings. 
(a) 
"Affordable housing" means a decent, s~fe 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) "Affordable housing project" means a project in which: 
(i) 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 cr€:ates new affordable housing; or 
(ii) At least 33% of the aggregate square feet of the completed project 
creates new affordable housing. 
(2) An affordable housing project for which the owner of the property received 
the income tax credit increase under Title 36, section 5219-BB, subsection 3 must 
remain an affordable housing project for 30 years from the date the affordable 
housing project is placed in service. 
If the property does not remain an 
affordable housing project for 30 years from the date the affordable housing 
project is placed in service, the owner of the property shall pay to the Maine State 
Housing Authority for application to the Housing Opportunities for Maine Fund 
established under section 4853 an amount equal to the income tax credit increase 
allowed under Title 36, section 5219-BB, subsection 3, plus interest on that 
amount at the rate of 7% per annum from the date the property is placed in 
service until the date of payment of all amounts due. 
The affordability 
requirements and the repayment obligation in this subparagraph must be set forth 
in a restrictive covenant executed by the owner of the property and the affordable 
housing project for the benefit of and enforceable by the Maine State Housing 
Authority and recorded in the appropriate registry of deeds before the owner of 
the property claims the income tax credit increase under Title 36, section 
5219-BB, subsection 3. 
(3) If the repayment obligation in subparagraph (2) is not fully satisfied after 
written notice is sent by certified mail or registered mail to the owner of the 
property at the owner's last known address, the Maine State Housing Authority 
may "file a notice of lien in the registry of deeds of the county in which the real 
property subject to the lien is located. The notice of lien must specify the amount 
and interest due, the name and last known address of the owner, a description of 
the property subject to the lien and the Maine State Housing Authority's address 
and the name and address of its attorney, if any. 
The Maine State Housing 
Authority shall send a copy of the notice of lien filed in the registry by certified 
mail or registered mail to the owner of the property at the owner's last known 
address and to any person who has a security interest, mortgage, lien, 
encumbrance or other interest in the property that is properly recorded in the 
registry of deeds in which the property is located. The lien arises and becomes 
COMMITTEE AMENDMENT 
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COMMITIEE AMENDMENT "A .. to S.P. 235, L.D. 742 
perfected at' the time the notice is filed in the appropriate registry of deeds in 
accordance with this subparagraph. The lien constitutes a lien on all property 
with respect to which the owner receives the income tax credit increase under 
Title 36, Section section 5219-BB, subsection 3 and the proceeds of any 
disposition of the property that occurs after notice to the owner of the repayment 
obligation. The lien is prior to any mortgage and security interest, lien, restrictive 
covenant or other encumbrance recorded, filed or otherwise perfected after the 
notice of lien is filed in the appropriate registry of deeds. The lien may be 
enforced by a turnover or sale order in accordance with Title 14, section 3131 or 
any other manner in which a judgment lien may be enforced under the law. The 
lien must be in the amount of the income tax credit increase allowed under Title 
36, section 5219-BB, subsection 3, plus interest on that amount at the rate of 7% 
per annum from the date the property is placed in service until the date of 
payment of all amounts due. Upon receipt of payment of all amounts due under 
the lien, the Maine State Housing Authority shall execute a discharge lien for 
filing in the registry or offices in which the notice of lien was filed. 
(4) Annually by every August 1st until and including August 1, 2(}.g 2023, 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 of completed projects that constitutes new affordable 
housing, rehabilitated and developed using: 
(a) 
Either of the income tax credits under Title 36, section 5219-BB, 
subsection 2; and 
(b) 
The income tax credit increase under Title 36, section 5219-BB, 
subsection 3. 
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 Title 36, section 5219-BB, the 
Maine State Housing Authority and Maine Historic Preservation Commission 
shall notifY the State Tax Assessor of this fact. 
Sec. 3. 30-A MRSA §4863, sub-§2, ~A, as enacted by PL 2009, c. 372, Pt. E, 
§ I, is amended to read: 
A. All money transferred to the fund pursuant to Title 36, section 4641-B, subsection 
4-A4-B; 
Sec. 4. 36 MRSA §2531 is enacted to read: 
§2531. Credit for rehabilitation of historic properties 
A taxpayer is allowed a credit against the- tax otherwise due under this chapter as 
determined under section 5219-BB. 
Sec. 5. 36 MRSA §4641-B, sub-§4-A, as enacted by PL 2009, c. 372, Pt. E, §3, 
is repealed. 
Sec. 6. 36 MRSA §4641-B, sub-§4-B is enacted to read: 
COMMITTEE AMENDMENT 
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COMMITIEE AMENDMENT" A" to S.P. 235, L.D. 742 
4-B. 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 1 and the amount 
of revenues derived from the tax imposed by section 4641-A, subsection 2. 
A. In fiscal year 201"1-12, the Treasurer of State shall credit the revenues derived 
from the tax imposed pursuant to section 4641-A, subsection 1 in accordance with 
this paragraph. 
(l) At the beginning of the fiscal year, the Maine State Housing Authority shall 
certify to the Treasurer of State the amount that is necessary and sufficient to 
meet the authority's obligations relating to bonds issued or planned to be issued 
by the authority under Title 30-A, section 4864. 
(2) On a monthly basis the Treasurer of State shall apply 50% of the revenues in 
accordance with this subparagraph. The Treasurer of State shall first pay 
revenues available under this subparagraph to the Maine State Housing 
Authority, which shall deposit the funds in the Maine Energy, Housing and 
Economic Recovery Fund established in Title 30-A, section 4863, until the 
amount paid equals the amount certified by the Maine State Housing Authority 
under subparagraph (1), after which the Treasurer of State shall credit any 
remaining revenues available under this subparagraph to the General Fund. 
(3) On a monthly basis the Treasurer of State shall apply 50% of the revenues in 
accordance with this subparagraph. 
The Treasurer of State shall first credit 
$3,830,000 of the revenues available under this subparagraph to the General 
Fund, after which the Treasurer of State shall pay any remaining revenues 
avaiiabie under this subparagraph 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. 
B. In fiscal year 2012-13, the Treasurer of State shall credit the revenues derived 
from the tax imposed pursuant to section 4641-A, subsection 1 in accordance with 
this paragraph. 
(1) At the beginning of the fiscal year, the Maine State Housing Authority shall 
certify to the Treasurer of State the amount that is necessary and sufficient to 
meet the authority'S obligations relating to bonds issued or planned to be issued 
by the authority under Title 30-A, section 4864. 
(2) On a monthly basis the Treasurer of State shall apply 50% of the revenues in 
accordance with this subparagraph. 
The Treasurer of State shall first pay 
revenues available under this subparagraph to the Maine State Housing 
Authority, which shall deposit the funds in the Maine Energy, Housing and 
Economic' Recovery Fund established in Title 30-A, section 4863, until the 
amount paid equals the amount certified by the Maine State Housing Authority 
under subparagraph (1), after which the Treasurer of State shaH credit any 
remaining revenues available under this subparagraph to the General Fund. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" ,," to S.P. 235, L.D. 742 
(3) On a monthly basis the Treasurer of State shall apply 50% of the revenues in 
accordance with this subparagraph. The Treasurer of State shall first credit 
$3,950,000 of the revenues available under this subparagraph to the General 
Fund, after which the Treasurer of State shall pay any remaining revenues 
available under this subparagraph 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. 
C. 'In fiscal year 2013-14, the Treasurer of StateshaU credit the revenues derived 
from the tax imposed pursuant to section 4641-A, subsection 1 in accordance with 
/ this paragraph. 
(1) At the beginning of the fiscal year, the Maine State Housing Authority shall 
c'ertify to the Treasurer of State the amount that is necessary and sufficient to 
meet the authority's obligations relating to bonds issued or planned to be issued 
by the authority under Title 30-A, section 4864. 
(2) On a monthly basis the Treasurer of State shall apply 50% of the revenues in 
accord~nce with this subparagraph. 
The Treasurer of State shall first pay 
revenues available under this subparagraph to the Maine State Housing 
Authority, which shall deposit the funds in the Maine Energy, Housing and 
Economic Recovery Fund established in Title 30-A, section 4863, until the 
amount paid equals the amount certified by the Maine State Housing Authority 
under subparagraph (1), after which the Treasurer of State shall credit any 
remaining revenues available under this subparagraph to the General Fund. 
(3) On a monthly basis the Treasurer of State shall apply 50% of the revenues in 
accordance with this subparagraph. The Treasurer of State shall first credit 
$245,160 of the revenues available under this subparagraph to the General Fund, 
after which the Treasurer of State shall pay any remaining revenues available 
under this subparagraph 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. 
D. In fiscal year 2014-15, the Treasurer of State shall credit the revenues derived 
from the tax imposed pursuant to section 4641-A, subsection 1 in accordance with 
this paragraph. 
(1) At the beginning of the fiscal year, the Maine State Housing Authority shall 
certify to the Treasurer of State the amount that is necessary and sufficient to 
meet the authority'S obligations relating to bonds issued or planned to be issued 
by the authority under Title 30-A, section 4864. 
(2) On a monthly basis the Treasurer of State shaH apply 50% of the revenues in 
accordance with this subparagraph. 
The Treasurer of State shall first pay 
revenues available under this subparagraph to the Maine State Housing 
Authority, which shall deposit the funds in the Maine Energy, Housing and 
Economic Recovery Fund established in Title 30-A, section 4863, until the 
amount paid equals the amount certified by the Maine State Housing Authority 
COMMITTEE AMENDMENT 
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COMMITIEE AMENDMENT" A "to S.P. 235, LD. 742 
under subparagraph (1), after which the Treasurer of State shall credit any 
remaining revenues available under this subparagraph to the General Fund. 
(3) On a monthly basis the Treasurer of State shall apply 50% of the revenu'es in 
accordance with this subparagraph. 
The Treasurer of State shall first credit 
$1,879,560 of the revenues available under this subparagraph to the General 
Fund, after which the Treasurer of State shall pay any remaining revenues 
available under this subparagraph 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. 
E. In fiscal year 2015-16 and each fiscal year thereafter, the Treasurer of State shall 
credit the revenues derived from the tax imposed pursuant to section 4641-A, 
subsection 1 in accordance with this paragraph. 
(1) At the beginning of the fiscal year, the Maine State Housing Authority shall 
certify to the Treasurer of State the amount that is necessary and sufficient to 
meet the authority'S obligations relating to bonds issued or planned to be issued 
by the authority under Title 30-A, section 4864. 
(2) On a monthly basis the Treasurer of State shall apply 50% of the revenues in 
accordance with this subparagraph. 
The Treasurer of State shall first pay 
revenues available under this subparagraph to. the Maine State Housing 
Authority, which shall deposit the funds in the Maine Energy, Housing and 
Economic Recovery Fund established in Title 30-A, section 4863, until the 
amount paid equals the amount certified by the Maine State Housing Authority 
under subparagraph (I), after which the Treasurer of State shall credit any 
remaining revenues available under this subparagraph to the General Fund. 
(3) On a monthly basis, the Treasurer of State shall credit 50% of the 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. 
F. 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 112 of the revenues 
derived from the tax imposed by section 4641-A, subsection 1 to the Housing 
Opportunities for Maine Fund established in Title 30-A, section 4853, as adjusted 
under this subsection, 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. 
G. 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. 7. 36 MRSA §5219-BB, sub-§l, ~C, as amended by PL 2009, c. 361, §28 
and affected by §37, is further amended to read: 
C. "Certified qualified rehabilitation expenditure" means a qualified rehabilitation 
expenditure, as defmed by the Code, Section 47(c)(2), made between January 1,2008 
and December 31, ~ 
2023. For purposes of subsection 2, paragraph B, qualified 
COMMITTEE AMENDMENT 
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COMMTITEE AMENDMENT" A." to S.P. 235, L.D. 742 
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. 
Sec. 8. 36 MRSA §5219-BB, sub-§2, as amended by PL 2009, c. 361, §28 and 
affected by §37, is further amended to read: 
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 stl1!cture is placed in service. 
A taxpayer is allowed a credit under paragraph A or B but not both. A credit may not be 
.~laimed for expenditures incurred before January 1, 2008 or after Decetnber 31, ;w.g 
'2023. 
Sec. 9. 36 MRSA' §5219-BB, sub-§4, as enacted by PL 2007, c. 539, Pt. WW, 
§4, is amended to read: 
4. Maximum credit. The credit allowed pursuant to this section and section 2531 
may not ~xceed $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.' 
SUMMARY 
This amendment replaces the bill, which eliminated the sunset for the Maine historic 
preservation tax credit, and changes the title. The amendment extends the sunset date to 
2023. It requ:rres the Maine Historic Preservation Commission to report to the Legislature 
every 2 years with an analysis on the use of the credit and recommendations for funding 
the credit after fiscal year 2014-15. rt allows insurance companies investing in historic 
preservation projects to receive the credit. It requires the Treasurer of State to first credit 
$245,160 in fiscal year 2013-14 and $1,879,560 in fiscal year 2014-15 of the revenues 
available for the state share of the proceeds from the real estate transfer tax to the General 
Fund, after which the Treasurer of State pays any remaining revenues to the Maine State 
Housing Authority, which deposits the funds in the Housing Opportunities for Maine 
Fund. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/04111 Mac.. 
LD 742 
LR 1010(02) 
An Act To Eliminate the Sunset Date of the Maine Historic Preservation Tax Credit 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Fiscal Note for Bill as Amended by Committee Amendment "A" "5- ~9 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2011-12 
FY 2012-13 
$0 
$0 
Projections 
FY 2013-14 
($12,258) 
Projections 
FY 2014-15 
($93,978) 
Other Special Revenue Funds 
$0 
$0 
$0 
$0 
$12,258 
($257,418) 
$93,978 
($1,973,538) 
Fiscal Detail and Notes 
Extending the sunset date for the Maine Historic Preservation Tax Credit to December 31,2023 will reduce General 
Fund revenue by $232,902 in fiscal year 2013-14 and by $1,785,582 in fiscal year 2014-15. The credit is paid for for 
two years by increasing the amount of real estate transfer tax transferred to the General Fund by $245,160 in fiscal 
year 2013-14 and by $1,879,560 in fiscal year 2014-15. This results in a net gain to the General Fund in fiscal years 
2013-14 and 2014-15 of $12,258 and $93,978 respectively, which equal the amounts not reimbursed to the revenue 
sharing program. 
This legislation reduces the amount of funds to be transferred from the real estate transfer tax to the HOME Fund 
within the Maine State Housing Authority (MSHA) by $245,160 in fiscal year 2013-14 and $1,879,560 in fiscal year 
2014-15. 
Additional costs to the Maine Historic Preservation Commission and the MSHA associated with submitting the 
required reports can be absorbed within existing budgeted resources. 
LRIOIO(02) - Fiscal Note - Page 1 of I