An Act To Eliminate the Sunset Date of the Maine Historic Preservation Tax Credit
Maine Legislature, Session 125, LD 0742
Committee: Taxation
Sponsors: RECTOR, BERRY, GOODALL, MARTIN, TRAHAN, WHITTEMORE, WOODBURY, MOULTON, VALENTINO
Amends: Title 36, Section 5219, 27 MRSA §511, 30-A MRSA §4722, 36 MRSA §5219-B

Legislative Document 
No. 742 
S.P. 235 
In Senate, February 18, 2011 
An Act To Eliminate the Sunset Date of the Maine Historic 
Preservation Tax Credit 
Received by the Secretary of the Senate on February 18, 2011.  Referred to the Committee 
on Taxation pursuant to Joint Rule 308.2 and ordered printed. 
JOSEPH G. CARLETON, JR. 
Secretary of the Senate 
Presented by Senator RECTOR of Knox. 
Cosponsored by Representative BERRY of Bowdoinham and 
Senators: GOODALL of Sagadahoc, MARTIN of Kennebec, McCORMICK of Kennebec, 
TRAHAN of Lincoln, WHITTEMORE of Somerset, WOODBURY of Cumberland, 
Representatives: MOULTON of York, VALENTINO of Saco. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  27 MRSA §511, sub-§5, ¶B, as enacted by PL 2007, c. 539, Pt. WW, §1, 
is amended to read: 
B.  By January 15, 2013 and every 4 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credits under Title 36, section 5219-BB should be extended continued, repealed or 
amended.  Any such recommendations must include a specific recommendation of 
appropriate transition provisions in order that projects in the development or planning 
stages are not adversely affected.  The joint standing committee may submit 
legislation related to the report. 
Sec. 2.  30-A MRSA §4722, sub-§1, ¶DD, 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. 
(1)  For purposes of this paragraph, 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)  "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 creates 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 
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 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, 2013, 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.  36 MRSA §5219-BB, sub-§1, ¶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 defined by the Code, Section 47(c)(2), made between on or after 
January 1, 2008 and December 31, 2013.  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. 
Sec. 4.  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 structure is placed in service. 
A taxpayer is allowed a credit under paragraph A or B but not both.  A credit may not be 
claimed for expenditures incurred before January 1, 2008 or after December 31, 2013. 
SUMMARY 
This bill eliminates the current sunset date for the Maine historic preservation tax 
credit and requires the Maine Historic Preservation Commission to report to the 
Legislature in 2013 and every 4 years thereafter with an analysis on the use of the credit.