An Act To Create Affordable Workforce and Senior Housing and Preserve Affordable Rural Housing
Maine Legislature, Session 129, LD 1645
Committee Amendment CA_A_H481 (House)
Amends: 30-A MRSA §4722

COMMITTEE AMENDMENT"/}" to H.P. 1180, L.D. 1645, Bill, "An Act To 
Create Affordable Workforce and Senior Housing and Preserve Affordable Rural 
Housing" 
Amend the bill by striking out all of section 2 and inserting the following: 
' 
'Sec. 2. 30-A MRSA §4722, sub-§1, ,fGG is enacted to read: 
GG. In accordance with the credit for affordable housing established in Title 36, 
section 5219-VV and in accordance with rules adopted under the Maine 
Administrative Procedure Act: 
(1) Allocate the credit; 
(2) Administer and enforce the requirements of the credit; and 
(3) Perform other functions and duties necessary for the proper administration of 
the credit, including providing any necessaty certifications and notices to 
taxpayers and to the Department of Administrative and Financial Services, 
Bureau of Revenue Services containing information required by the State Tax 
Assessor necessary for determining eligibility and the amount of the credit for 
each taxable year. 
Rules adopted under this paragraph are routine technical rules.' 
Amend the bill in section 3 in paragraph HHH in the last line (page 1, line 26 in L.D.) 
by inserting after the following: "5219-VV" the following: 'and for purposes of the report 
required by section 5219-VV, subsection 9' 
Amend the bill in section 5 in §5219-VV by striking out all of subsections 2 to 4 
(page 2, lines 30 to 41 and page 3, lines 1 to 39 in L.D.) and inserting the following: 
'2. Credit allowed. A taxpayer receiving a credit certificate from the authority for 
the taxable year pursuant to Title 30-A, section 4722, subsection 1, paragraph GG is 
allowed a credit against the tax imposed under this Part: 
COMMITTEE AMENDMENT 
\€\. -- i. 
COMMITTEEAMENDMENT"A"toH.P.1180,L.D.1645 
A. Equal to the total federal low-income housing tax credit computed using the entire 
federal credit period as described in Section 42(f) of the Code for all buildings in a 
qualified Maine project: or 
B. Equal to 50% of the qualified basis of an affordable housing project that incurs 
not less than $100,000 includible in eligible basis as defined in Section 42(d) of the 
Code in the construction or rehabilitation of an affordable housing project for which a 
credit is not claimed under Section 42 of the Code with regard to those expenditures, 
except that not more than $500,000 in credit may be allocated to taxpayers for a 
single project under this paragraph. 
A credit may be allowed for an affordable housing project under paragraph A or B but not 
both. 
3. Maximum credit; carry-forward. The total credit amount available pursuant to 
this section and section 2534 to be allocated by the authority for each calendar year 
beginning on or after January 1, 2021 and ending on or before December 31, 2024 is 
subject to the following limitations. 
A. The total allocation may not exceed $20,000,000. Any portion of that amount not 
allocated in a calendar year may be carried forward and available to be allocated in 
subsequent calendar years, except that: 
(1) Any previously allocated credits returned to the authority, excluding any 
credits recaptured under subsection 7, must be added to that amount; and 
(2) The authority may not allocate more than $25,000,000 in any calendar year. 
B. No more than 20% of credits allocated in any calendar year may be allocated 
under subsection 2, paragraph B. 
C. Ten percent of credits first available to be allocated in any calendar year must be 
set aside to be allocated for the purpose of qualified rural development preservation 
projects pursuant to subsection 2, paragraph B. Any portion of the amount under this 
paragraph not allocated in a calendar year must be carried forward and be available to 
be allocated in subsequent calendar years for the purpose of qualified rural 
development preservation projects. To the extent that any amounts set aside under 
this paragraph are not allocated on or before December 31, 2024, those amounts may 
be allocated by the authority without regard to whether the project is a qualified rural 
development preservation project. 
D. Only those credits that have been carried f01ward or returned, excluding any 
credits recaptured under subsection 7, as described in this subsection may be 
allocated by the authority after December 31, 2024. 
4. Timing of allocation by authority and credit. The authority may not make an 
allocation of credit to a taxpayer for a project before the date that any portion of the 
project is placed in service for federal tax purposes. Upon making an allocation of a 
credit to a taxpayer, the authority shall certify the allocation to the taxpayer and to the 
bureau. 
The certification must provide information required by the assessor for 
determining eligibility and the amount of the credit for each taxable year. 
COMMITTEE AMENDMENT 
• 
COMMITTEE AM.ENDMENT "P" to H.P. 1180, L.D. 1645 
A. The entire credit allowed for a project pursuant to this section must be taken in 
the later of: 
(1) The first taxable year in which the federal low-income housing tax credit for 
that project is claimed for projects allocated a credit pursuant to subsection 2, 
paragraph A; and 
(2) The first taxable year for which the project has an allocation of credit from 
the authority. 
B. Notwithstanding paragraph A. the authority may allocate a credit to a taxpayer for 
a project for the immediately preceding calendar year if: 
(1) The project was placed in service for federal tax purposes in the immediately 
preceding calendar year; and 
(2) 
The allocation is made no later than the 60th day of the calendar year 
following the year in which the project was placed in service.' 
Amend the bill in section 5 in §5219-VV by striking out all of subsection 6 (page 4, 
lines 1 to 11 in L.D.) and inserting the following: 
'6. Allocation of credit among taxpayers. Credits allowed to a partnership, a 
limited liability company taxed as a partnership or multiple owners of a credit-qualified 
affordable housing project 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 written agreement among the partners, members or owners 
documenting an alternate allocation method. 
Credits may be allocated to partners, 
members or owners that are exempt from taxation under the Code, Section 50l(c)(3), 
Section 501(c)(4) or Section 501(c)(6), and those partners, members or owners must be 
treated as taxpayers for the purposes of this section. Credits allowed under subsection 2, 
paragraph B may be claimed by an entity that is exempt from taxation under the Code, 
Section 50l(c)(3), Section 50l(c)(4) or Section 501(c)(6) and is the owner of the 
affordable housing. The tax-exempt entity must be treated as a taxpayer for purposes of 
this section.' 
Amend the bill in section 5 in §5219-VV in subsection 7 in the 3rd line (page 4, line 
in L.D.) by inserting after the following: "section." the following: 'The authority shall 
administer this subsection.' 
Amend the bill in section 5 in §5219-VV in subsection 8 in paragraph Bin the last 2 
lines (page 5, lines 29 and 30 in L.D.) by striking out the following: "Section 520 of the 
federal Housing Act of 1949. as amended" and inserting the following: 'the authority in 
rules adopted under Title 30-A. section 4722. subsection 1. paragraph GG' 
Amend the bill in section 5 in §5219-VV by striking out all of subsection 9 (page 5, 
lines 33 to 35 in L.D.) 
Amend the bill in section 5 in §5219-VV in subsection 11 in the last paragraph in the 
3rd to 7th lines (page 6, lines 25 to 29 in L.D.) by striking out the following: "!2y 
Februaty 1. 2024. Following receipt of the repmt, the joint standing committee shall 
determine whether the credit provided under this section is meeting its public policy 
objectives and whether it should be continued. The joint standing committee may submit 
COMMITTEE AMENDMENT 
~· 
i 
COMMITTEE AMENDMENT"~" to H.P. 1180, L.D. 1645 
a bill to the Second Regular Session of the 131 st Legislature to accomplish its 
recommendations II 
Amend the bill in section 5 in §5219-VV by renumbering the subsections to read 
consecutively. 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment makes several changes to the procedure for administration of the 
credit for affordable housing to appropriately reflect the most effective responsibilities of 
the Maine State Housing Authority and the Department of Administrative and Financial 
Services, Maine Revenue Services and requires the authority to adopt routine technical 
rules necessary for administration of the credit. The amendment also removes the date 
for a report by the Office of Program Evaluation and Government Accountability. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/23/19 :Wac:.. 
LD 1645 
LR 1760(02) 
An Act To Create Affordable Workforce and Senior Housing and Preserve Affordable Rural Housing 
Fiscal Note for Bill as Amended by Committee Amendment •fi { H- 9 g !) 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2019-20 
FY2020-21 
Projections 
FY 2021-22 
Projections 
FY2022-23 
Net Cost (Savings) 
General Fund 
$0 
$0 
$17,350,638 
$19,000,000 
Appropriations/ Allocations 
General Fund 
Revenue 
$0 
$0 
$60,638 
$0 
General Fund 
$0 
$0 
$0 
($17,290,000) 
($19,000,000) 
Other Special Revenue Funds 
$0 
($910,000) 
($1,000,000) 
Fiscal Detail and Notes 
The bill creates a state affordable housing tax credit and would result in a reduction in General Fund revenue of 
$17,290,000 in fiscal year 2021-22 and a reduction in Local Government Fund revenue of $910,000 in fiscal year 
2021-22. The Department of Administrative and Financial Services will require a General Fund appropriation of 
$60,638 in fiscal year 2021-22 for programming costs. 
Additional costs to the Maine State Housing Authority to implement the requirements of this legislation can be 
absorbed within existing budgeted resources. 
LRl 760(02) - Fiscal Note - Page 1 of 1