An Act to Expand the Maine Historic Rehabilitation Credit and Establish a Weatherization Tax Credit
Maine Legislature, Session 131, LD 1810
Committee: Taxation
Sponsors: TERRY, MALON, O'NEIL, SCHMERSAL-BURGESS, SHEEHAN, TALBOT ROSS
Amends: 27 MRSA §511, 36 MRSA §5219-B, 36 MRSA §5219-A

Legislative Document
No. 1810
H.P. 1155
House of Representatives, April 25, 2023
An Act to Expand the Maine Historic Rehabilitation Credit and 
Establish a Weatherization Tax Credit
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative TERRY of Gorham.
Cosponsored by Representatives: MALON of Biddeford, O'NEIL of Saco, SCHMERSAL-
BURGESS of Mexico, SHEEHAN of Biddeford, Speaker TALBOT ROSS of Portland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  27 MRSA §511, sub-§1, as enacted by PL 2007, c. 539, Pt. WW, §1, is 
amended to read:
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 and historic homes pursuant to Title 36, section 5219-AAA.
Sec. 2.  27 MRSA §511, sub-§2-A is enacted to read:
2-A.  Certification for the rehabilitation and weatherization of historic homes.  
The director shall certify information necessary for applicants to demonstrate eligibility for 
an income tax credit under Title 36, section 5219-AAA, in accordance with this subsection.
A.  As used in this subsection the following terms have the following meanings.
(1)  "Certified exterior rehabilitation expenditures" has the same meaning as in 
Title 36, section 5219-AAA, subsection 1, paragraph A.
(2)  "Certified historic home" has the same meaning as in Title 36, section 
5219-AAA, subsection 1, paragraph B.
(3)  "Qualified exterior rehabilitation expenditure" has the same meaning as in Title 
36, section 5219-AAA, subsection 1, paragraph D.
B.  The director may require the following information:
(1)  The certified exterior rehabilitation of a certified historic home is consistent 
with subsection 2, paragraph A; 
(2)  The qualified exterior rehabilitation expenditures meet the requirements for an 
income tax credit under Title 36, section 5219-AAA; and
(3)  Any one of the following criteria apply to the certified historic home. The 
certified historic home is:
(a)  A building individually listed in or determined to be eligible for listing in 
the National Register of Historic Places;
(b)  Classified as contributing to a local historic district listed in or eligible for 
listing in the National Register of Historic Places;
(c)  Designated as a local landmark or contributing to a local historic district 
that has been listed in the National Register of Historic Places; and
(d)  Designated as a local landmark or contributing to a local historic district 
that substantially meets the National Register of Historic Places criteria as 
determined by the director.
For the purposes of credit claimed under Title 36, section 5219-AAA, buildings and 
districts determined to be eligible for listing in the National Register of Historic Places, as 
well as locally designated landmarks and districts, do not have to be nominated to the 
National Register of Historic Places.
The director shall adopt rules implementing this subsection. Rules adopted pursuant to this 
subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.
Sec. 3.  27 MRSA §511, sub-§5, ¶B, as amended by PL 2011, c. 453, §1, is further 
amended to read:
B.  By January 15, 2013, the Maine Historic Preservation Commission shall review the 
tax credit provided under Title 36, section 5219-BB and shall make recommendations 
to the joint standing committee of the Legislature having jurisdiction over taxation 
matters regarding specific proposals for funding the credit.  By January 15, 2015 and 
every 2 years thereafter, the Maine Historic Preservation Commission shall analyze the 
use of tax credits provided under Title 36, section sections 5219-BB and 5219-AAA 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 costs of the credit credits if they exceed the costs of the credit credits 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 sections 5219‑BB and 5219-AAA should be extended, 
repealed or amended.  The recommendations must include specific proposals for 
funding the credit credits 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. 4.  36 MRSA §5219-BB, sub-§2, ¶B, as amended by PL 2011, c. 240, §38, is 
further amended to read:
B.  Equal to 25% 30% of the certified qualified rehabilitation expenditures of a taxpayer 
who incurs not less than $50,000 and up to $250,000 $1,000,000 in certified qualified 
rehabilitation expenditures in the rehabilitation of a certified historic structure located 
in the State and who does not claim a credit under the Code, Section 47 with regard to 
those expenditures.  If the certified historic structure is a condominium, as defined in 
Title 33, section 1601‑103, subsection 7, the dollar limitations of this paragraph apply 
to the total aggregate amount of certified qualified rehabilitation expenditures incurred 
by the unit owners' association and all of the unit owners in the rehabilitation of that 
certified historic structure.  The credit may be claimed for the taxable year in which the 
certified historic structure is placed in service.
Sec. 5.  36 MRSA §5219-BB, sub-§3, as amended by PL 2019, c. 379, Pt. C, §4, 
is further amended to read:
3.  Increased credit for a certified affordable housing project.  The credit allowed 
under this section subsection 2, paragraph A is increased to 30% 35% of certified qualified 
rehabilitation expenditures for a certified affordable housing project and the credit allowed 
under subsection 2, paragraph B is increased to 45% of certified qualified rehabilitation 
expenditures for a certified affordable housing project.  If the certified affordable housing 
project for which an increased credit was allowed under this subsection 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 is subject to the repayment provisions of Title 
30‑A, section 4722, subsection 1, paragraph DD.  Upon notification by the Maine Historic 
Preservation Commission and the Maine State Housing Authority pursuant to Title 30‑A, 
section 4722, subsection 1, paragraph DD, subparagraph (4), the State Tax Assessor shall 
increase the credit rate under this subsection that was in effect in the calendar year prior to 
the calendar year in which the notification was received by one percentage point for tax 
years beginning in the calendar year of that notification and for any subsequent tax year.  
In no event may the credit rate under this subsection exceed 35% of the taxpayer's certified 
qualified rehabilitation expenditures.
Sec. 6.  36 MRSA §5219-AAA is enacted to read:
§5219-AAA.  Credit for rehabilitation and weatherization of historic homes
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
A.  "Certified exterior rehabilitation" means the exterior restoration, preservation or 
reconstruction, including weatherization, of a certified historic home that the Director 
of the Maine Historic Preservation Commission certifies is consistent under Title 27, 
section 511, subsection 2, paragraph A.
B.  "Certified historic home" means a structure located in the State that is a taxpayer's 
homestead, as defined in section 681, subsection 2, that contains up to 4 dwelling units, 
that has been certified by the Director of the Maine Historic Preservation Commission 
as a historic structure under Title 27, section 511, subsection 2 and that may include 
any ancillary buildings that contribute to the historical significance of the historic, as 
determined by the Director of the Maine Historic Preservation Commission.
C.  "Dwelling unit" means a house or apartment used as a residence for an occupant.
D.  "Qualified exterior rehabilitation expenditure" means any amount incurred by a 
taxpayer that is reasonably related to a certified exterior rehabilitation, as determined 
by the Director of the Maine Historic Preservation Commission.
E.  "Residence" has the same meaning as in Title 21-A, section 112, subsection 1.
2.  Credit allowed.  A taxpayer is allowed a credit against the tax imposed under this 
Part equal to 25% of the qualified exterior rehabilitation expenditure of a taxpayer who 
incurs at least $5,000 and not more than $62,500 in qualified exterior rehabilitation 
expenditures for the certified exterior rehabilitation of a certified historic home.
3.  Increased credit for certain taxpayers and the creation of new housing.  The 
credit allowed under this section is increased to 30% of qualified exterior rehabilitation 
expenditures, up to a maximum credit of $75,000 per certified exterior rehabilitation of a 
certified historic home, if:
A.  The taxpayer's income in the year in which the qualified exterior rehabilitation 
expenditures were accrued is at or below 120% 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 75-412, 50 Stat. 888, Section 8, as 
amended;
B.  For a certified historic home with more than one dwelling unit, that taxpayer agrees, 
for a period of 4 years, to rent at least one dwelling unit to a household with income at 
or below 100% 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 75-412, 50 Stat. 888, Section 8, as amended, measured at the time 
of initial occupancy; and
C.  The certified historic home has not been used as a residence by tenants or property 
owners for the 5 years prior to the year in which the credit is first claimed.
4.  Timing of credit.  Twenty-five percent of the credit allowed under 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.
5.  Credit refundable.  The credit allowed under this section is refundable.
6.  Transfer upon sale or for financing.  Upon the sale or transfer of a certified 
historic home, a taxpayer eligible for the credit under this section shall transfer, sell or 
assign to the subsequent owner the credit for the year in which the certified historic home 
is transferred or sold and any remaining portion of the credit for any subsequent years. A 
taxpayer may transfer, sell or assign any portion of the credit to a mortgagor for the 
purposes of securing financing for the completion of the certified exterior rehabilitation.
7.  Recapture.  The credits allowed under this section are subject to recapture if, before 
the final taxable year the credit can be taken:
A.  Any exterior alterations are made to the certified historic home without the prior 
approval of the Director of the Maine Historic Preservation Commission; or 
B.  The certified historic home ceases to be the homestead of the taxpayer or the 
successor taxpayer who has been assigned credits pursuant to subsection 6.
The recapture amount under paragraph A or B is equal to the amount of credit remaining 
to be claimed for the taxable year in which the recapture occurred and all subsequent years. 
If a taxpayer claims the income tax credit increase under subsection 3, paragraph B, but 
fails or ceases to rent a dwelling unit to a household at or below 100% of the median income 
for the area as required, the entire income tax credit increase under subsection 3, paragraph 
B is subject to recapture.
8.  Limitation.  A taxpayer who is eligible to claim a credit under section 5219-R or 
5219-BB, whether or not a credit is actually claimed, may not claim a credit under this 
section.
9.  Rules.  The bureau shall adopt rules implementing this section. Rules adopted 
pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, 
subchapter 2-A.
Sec. 7.  Appropriations and allocations.  The following appropriations and 
allocations are made.
HISTORIC PRESERVATION COMMISSION, MAINE
Historic Preservation Commission 0036
Initiative: Provides ongoing funds for 2 Historic Preservationist Coordinator positions and 
related All Other costs to implement the certification obligations of the Director of the 
Maine Historic Preservation Commission under the Maine Revised Statutes, Title 27, 
section 511 for the expanded small project credit under Title 36, section 5219-BB and the 
new tax credit for the rehabilitation and weatherization of historic homes under Title 36, 
section 5219-AAA. One position begins October 1, 2023 and one position begins July 1, 
2024.
GENERAL FUND
2023-24
2024-25
POSITIONS - LEGISLATIVE COUNT
1.000
2.000
Personal Services
$73,780
$207,994
All Other
$6,750
$18,000
__________
__________
GENERAL FUND TOTAL
$80,530
$225,994
SUMMARY
This bill amends the tax credit for historic properties by:
1. Increasing the tax credit from 25% to 30% of the certified qualified rehabilitation 
expenditures of a taxpayer for a certified historic structure if the taxpayer does not claim a 
credit under the United States Internal Revenue Code of 1986, Section 47; 
2. Increasing the allowable certified qualified rehabilitation expenditures of a taxpayer 
from a maximum of $250,000 to a maximum of $1,000,000 for a certified historic structure 
if the taxpayer does not claim a credit under the Code, Section 47;
3. Increasing the increased tax credit for a certified affordable housing project from 
30% to 35% of certified qualified rehabilitation expenditures for which a credit is claimed 
under the Code, Section 47; and
4. Increasing the increased tax credit for a certified affordable housing project from 
30% to 45% of certified qualified rehabilitation expenditures if the taxpayer does not claim 
a credit under the Code, Section 47.
The bill establishes a credit for rehabilitation and weatherization of historic homes 
equal to 25% of the qualified exterior rehabilitation expenditures of a taxpayer who incurs 
at least $5,000 in expenditures for a certified historic home. It also provides for an increased 
credit of 30% of expenditures up to $75,000 under certain circumstances.  It requires the 
Director of the Maine Historic Preservation Commission to determine whether a taxpayer 
meets the requirements to receive the credit.
The bill adds the credit for rehabilitation and weatherization of historic homes to the 
biennial report that the Maine Historic Preservation Commission provides to the 
Legislature.