An Act to Clarify the Qualifying Use of Tax Increment Financing
Maine Legislature, Session 132, LD 1044
Sponsors: KUHN, PIERCE
Amends: 30-A MRSA §5224

Legislative Document
No. 1044
H.P. 673
House of Representatives, March 14, 2025
An Act to Clarify the Qualifying Use of Tax Increment Financing 
for Extension of a Development District
Received by the Clerk of the House on March 12, 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 KUHN of Falmouth.
Cosponsored by Senator PIERCE of Cumberland and
Representatives: BRIDGEO of Augusta, DHALAC of South Portland, LEE of Auburn, 
MOONEN of Portland, MURPHY of Scarborough.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  30-A MRSA §5224, sub-§2, ¶H, as amended by PL 2023, c. 472, §1, is 
further amended by amending subparagraph (1) to read:
(1)  A development district that is a tax increment financing district may not exceed 
a total of 30 tax years beginning with the tax year in which the designation of the 
development district is effective pursuant to section 5226, subsection 3 or, if 
specified in the development program, the subsequent tax year, except that, during 
the 10 calendar years after the general effective date of laws enacted during the 
extended an additional 20 years if the district uses in total at least 75% of tax 
increment financing revenue for affordable housing projects or transit-oriented 
development, or both.  A district that is extended under this subparagraph may 
continue to use the original assessed value of the district.
For purposes of this subparagraph, "affordable housing" means a decent, safe and 
sanitary dwelling, apartment or other living accommodation for a household whose 
income does not exceed 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; "transit-
oriented development" means a type of development that links land use with transit 
facilities by combining housing with complementary public uses, including jobs, 
and retail or services establishments, that are located in transit-served nodes or 
corridors rely on transit as one of the means of meeting the transportation needs of 
residents, customers and occupants, regardless of whether the development is 
located in a transit-oriented development district, area or corridor or a transit-
served node; and "original assessed value" means the taxable assessed value of a 
district as of March 31st of the tax year preceding the year in which it was 
designated by a municipality and approved by the commissioner under section 
5226, subsection 2; and
SUMMARY
This bill clarifies that to be eligible for a 20-year extension, a tax increment financing 
district may use the tax increment financing revenue for one or both of the permitted uses 
of affordable housing and transit-oriented development.  The bill also amends the definition 
of "transit-oriented development" to provide that such a development does not have to be 
located in a transit-oriented development district, area or corridor or a transit-served node.