An Act to Expand Tax Incentives for Certain Barn Renovations
Maine Legislature, Session 132, LD 1889
Sponsors: BLIER
Amends: 5 MRSA §13056, 36 MRSA §5219-C

Legislative Document
No. 1889
H.P. 1260
House of Representatives, May 5, 2025
An Act to Expand Tax Incentives for Certain Barn Renovations
Received by the Clerk of the House on May 1, 2025.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative BLIER of Buxton.
Cosponsored by Representative: ARATA of New Gloucester.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §13056, sub-§8, as amended by PL 2021, c. 672, §2, is further 
amended to read:
8.  Lead agency for business assistance in response to certain events.  Be the lead 
agency for the State to provide information and business assistance to employers and 
businesses as part of the State's response to an event that causes the Department of Labor 
to carry out rapid-response activities as described in 29 United States Code, Sections 2801 
to 2872 (2002); and
Sec. 2.  5 MRSA §13056, sub-§9, ¶C, as enacted by PL 2021, c. 672, §3, is 
amended to read:
C.  Consider any other information as necessary to meet the goals pursuant to this 
subsection.; and
Sec. 3.  5 MRSA §13056, sub-§10 is enacted to read:
10.  Barn preservation incentive program.  Establish and implement a program for 
the restoration of barns that allows persons engaged in that restoration to qualify for the tax 
credit provided in Title 36, section 5219-CCC.
Sec. 4.  36 MRSA §5219-CCC is enacted to read:
§5219-CCC.  Barn preservation incentive tax credit
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Barn" means a residential outbuilding originally constructed for the purposes of 
the storage of farm products, the housing of livestock or the storage of farm equipment. 
B. "Commissioner" means the Commissioner of Economic and Community 
Development. 
C. "Department" means the Department of Economic and Community Development. 
D. "Eligible barn" means a barn located on residential property that is used for 
noncommercial purposes by its owner. 
E. "Eligible capital investment" means the total of expenditures incurred by a taxpayer 
that exceed $25,000 to preserve, restore and renovate an eligible barn during the tax 
year. 
F. "Restoration" means labor and materials to renovate, improve and preserve an 
eligible barn. 
2.  Credit allowed.  For tax years beginning on or after January 1, 2026, a taxpayer 
who is engaged in the restoration of an eligible barn is allowed a credit as provided in this 
section.  Subject to subsections 3 and 4, the credit allowed is equal to 40% of the eligible 
capital investment made in the restoration of the eligible barn. 
3.  Credit refundable.  The credit allowed under this section is refundable up to 
$400,000 per tax year, with the following exceptions. 
A.  In the case of an eligible barn owned by a partnership or an S corporation, the credit 
under this section is refundable to each partner or shareholder up to an amount equal 
to $400,000 multiplied by the pro rata share of the partner or shareholder determined 
in accordance with section 5219‑G, subsection 1. 
B.  In the case of an eligible barn owned by a partnership or an S corporation, when 
there is a taxpayer that is a beneficiary of an estate or trust that is a partner in a 
partnership or shareholder in an S corporation, the credit under this section is 
refundable up to an amount equal to the amount determined in accordance with 
paragraph A for the estate or trust multiplied by each beneficiary's pro rata share of tax 
credits determined in accordance with section 5219‑G, subsection 2. 
4.  Limitation; carry-over.  A taxpayer entitled to a credit under this section for any 
tax year may carry over any unused portion of the credit determined in accordance with 
subsection 2, as reduced from year to year, and apply it to the tax liability for any one or 
more of the next succeeding 4 tax years.  Carry-over amounts may be applied to tax years 
after the first year in which the credit is taken.  The credit allowed pursuant to this section, 
including carry-overs, may not exceed $1,600,000 for any one tax year, with the following 
exceptions. 
A.  In the case of a taxpayer that is a partner in a partnership or a shareholder in an S 
corporation, the credit under this section may not exceed $1,600,000 multiplied by the 
pro rata share of the partner or shareholder determined in accordance with section 
5219‑G, subsection 1. 
B.  In the case of a taxpayer that is a beneficiary of an estate or trust that is a partner in 
a partnership or shareholder in an S corporation, the credit under this section may not 
exceed $1,600,000 multiplied by the ratio determined in accordance with paragraph A, 
the result of which is multiplied by each beneficiary's pro rata share of tax credits 
determined in accordance with section 5219‑G, subsection 2. 
5.  Rules.  The assessor and the commissioner may jointly adopt rules necessary to 
implement this section.  Rules adopted under this subsection are routine technical rules as 
defined in Title 5, chapter 375, subchapter 2‑A. 
6.  Annual report to department and Legislature.  On or before December 31, 2027 
and annually thereafter, the assessor shall report to the department the following 
information for each barn that is the subject of a credit pursuant to this section for the tax 
year ending during the immediately preceding calendar year: 
A.  The municipality in which the eligible barn is located; 
B.  The value of eligible capital investment expenditures made for the eligible barn; 
and
C.  The credit amount received by the taxpayer that owns the barn under subsection 3, 
paragraph A or B for the prior tax year. 
On or before March 1, 2028 and annually thereafter, the department shall report to the joint 
standing committees of the Legislature having jurisdiction over taxation matters and 
economic development matters with information on the tax credit, including the 
information reported by the assessor under this subsection.
SUMMARY
This bill creates a refundable tax credit equal to 40% of the cost that exceeds $25,000 
of the restoration of a noncommercial barn located on residential property.  The maximum 
credit per year is $400,000.  The credit may be carried forward for a maximum of 4 years 
and the maximum total credit taken may not exceed $1,600,000.