An Act to Accelerate the Production of Affordable Housing and Strengthen the Historic Property Rehabilitation Tax Credit
Maine Legislature, Session 131, LD 2106
Committee Amendment CA_A_S567 (Senate)
Amends: 36 MRSA §5219-B

COMMITTEE AMENDMENT " h " to S.P. 899, L.D. 2106, "An Act to Accelerate
the Production of Affordable Housing and Strengthen the Historic Property Rehabilitation
Tax Credit"
Amend the bill by striking out the title and substituting the following:
'An Act to Strengthen the Historic Property Rehabilitation Tax Credit'
Amend the bill by striking out everything after the enacting clause and inserting the
following:
'See. 1. 36 MRSA §5219-BB, sub-§4, as repealed and replaced by PL 2013, c,
550, §1 and affected by §2, is amended to read:
4. IVIaximum credit. The credit allowed pursuant to this section and section 2534
may not exceed the greater of:
A. Five million dollars For tax years beginnine before January 1.2024. $5.000.000 for
the portion of a certified rehabilitation as defined by the Code, Section 47(c)(2)(C)
placed in service in the State in the taxable year or, for tax years begiiming on or after
January 1. 2024, $ 10,000,OQO_for the portion of a certified rehabilitation as defined by
the Code. Section 47fc')f2')fC) placed in service in the State in the taxable year; and
B. Five million dollars For tax years beeinnine before January 1.2024. $5.000.000 for
each building that is a component of a certified historic structure for which a credit is
claimed under this section or, for tax years beeinning on or after January 1. 2024.
$10.000.000 for each building that is a component of a certified historic structure for
which a credit is clau-ned under this section.
Sec. 2. 36 MRSA §5219-BB, sub-§5, as amended by PL 2009, c, 361, §28 and
affected by §37, is further amended to read:
5. Timing of credit. Twenty five percent For tax years beeinnine before Januaiy 1.
2024, 25% of the credit allowed pursuant to this section must be taken in the taxable year
the credit may be first claimed and 25% must be taken in each of the next 3 taxable years.
For tax years beginning on or after January 1. 2024. 34% of the credit allowed pursuantto
COMMITTEE AMENDMENT
ROS COMMITTEE AMENDMENT "^\ " to S,P. 899, L,D. 2106 ( ^ ^
this section must be taken in the taxable year the credit may be first claimed and 3 3 % must
be taken in each of the next 2 taxable years.'
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment removes the provision in the bill allowing certain nonprofit
organizations flexibility in the tax year timing of claiming refundable credits for historic
preservation and affordable housing, For tax years beginning on or after Januaiy 1, 2024,
the amendment also changes the period of time for claiming the credit for historic
rehabilitation from 4 years to 3 years. The amendment also makes technical corrections to
the bill.
FISCAL NOTE REQUIRED
(See attached)
COMMITTEE AMENDMENT
Approved: 02/22/24 ^S»^
LD 2106 LR 2772(02)
An Act to Accelerate the Production of Affordable Housing and Strengthen the Historic Property
Rehabilitation Tax Credit
Fiscal Note for Bill as Amended by Committee Amendment '^" / c,
Committee: Taxation
Fiscal Note Required: Yes
Fiscal Note
Projections Projections
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Net Cost (Savings)
General Fund
Revenue
General Fund
Other Special Revenue Funds
$0
$95,000 $950,000 $2,826,250
$0 ($95,000) ($950,000) ($2,826,250)
$0 ($5,000) ($50,000) ($148,750)
Fiscal Detail and Notes
This bill increases the maximum tax credit allowed for certified historic property rehabilitation projects from $5
million to $ 10 million and changes the time period for claiming the credit from 4 to 3 years for tax years beginning
on or after January 1, 2024. These changes will reduce General Fund revenue by $95,000 and reduce Local
Government Fund revenue by $5,000 in fiscal year 2024-25. Due to the multi-year structure of the tax credit, the full
impact of doubling the maximum credit will be realized over several years, resulting in substantially larger decreases
in revenue in fiscal years 2025-26 and 2026-2" relative to fiscal year 2024-25,
Administrative costs to the Department of Administrative Services, Bureau of Revenue Services to implement the
changes in the tax credit for certified historic property rehabilitation projects are expected to be minor and can be
absorbed within existing budgeted resources.
LR2772(02) - Fiscal Note - Page 1 of 1