An Act to Expand the Historic Property Rehabilitation Tax Credit
Maine Legislature, Session 132, LD 0435
Committee: Taxation
Sponsors: HASENFUS
Amends: 27 MRSA §511, 36 MRSA §191, 36 MRSA §5219-B, 36 MRSA §5219-C

Legislative Document
No. 435
H.P. 289
House of Representatives, February 4, 2025
An Act to Expand the Historic Property Rehabilitation Tax Credit
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative HASENFUS of Readfield.
Cosponsored by Representative: MALON of Biddeford.
Be it enacted by the People of the State of Maine as follows:
PART A
Sec. A-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-CCC.
Sec. A-2.  27 MRSA §511, sub-§2-A is enacted to read:
2-A.  Certification for 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-CCC, in accordance with this subsection.
A.  As used in this subsection, the following terms have the following meanings.
(1)  "Certified exterior rehabilitation" has the same meaning as in Title 36, section 
5219-CCC, subsection 1, paragraph A.
(2)  "Certified historic home" has the same meaning as in Title 36, section 
5219-CCC, subsection 1, paragraph B.
(3)  "Qualified exterior rehabilitation expenditure" has the same meaning as in Title 
36, section 5219-CCC, subsection 1, paragraph E.
B.  The director may require an applicant to provide information establishing the 
following:
(1)  That the certified exterior rehabilitation of a certified historic home is 
consistent with subsection 2, paragraph A; 
(2)  That the qualified exterior rehabilitation expenditures meet the requirements 
for an income tax credit under Title 36, section 5219-CCC;
(3)  That 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 historic district listed in or eligible for listing 
in the National Register of Historic Places;
(c)  Designated as a local landmark or a contributing resource in a local historic 
district that has been certified by the United States Department of the Interior, 
National Park Service; or
(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; and
(4)  That the eligibility of any dwelling previously determined eligible for listing 
in the National Register of Historic Places will be reconfirmed at the time of the 
tax credit application.
By January 15th of each calendar year, the director shall provide to the Department of 
Administrative and Financial Services, Bureau of Revenue Services a list of all taxpayers 
who have applied for and demonstrated eligibility for the credit claimed under Title 36, 
section 5219-CCC; a list of all certified historic homes that are the subject of the credit 
claimed under Title 36, section 5219-CCC; and verification that those taxpayers who 
claimed the tax credit increase under Title 36, section 5219-CCC, subsection 3 the prior 
tax year remain eligible for the tax credit increase.
For the purposes of the credit claimed under Title 36, section 5219-CCC, 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 by the Maine Historic Preservation Commission.
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. A-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 2026 
and every 2 5 years thereafter, the Maine Historic Preservation Commission shall 
analyze the use of tax credits provided under Title 36, section sections 5219-BB and 
5219-CCC as an incentive for rehabilitation of historic structures and, economic 
development and the creation of new housing at the time of project completion, 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 committees of the Legislature 
having jurisdiction over taxation, housing and economic development matters with 
recommendations as to whether the credits under Title 36, section sections 5219‑BB 
and 5219-CCC should be extended, repealed or amended.  The recommendations must 
include specific proposals for funding the credit credits after fiscal year 2014-15 
2030-31 and appropriate transition provisions in order that projects in the development 
or planning states are not adversely affected.  The joint standing committee committees 
may submit legislation related to the report.
Sec. A-4.  36 MRSA §191, sub-§2, ¶VVV is enacted to read:
VVV.  The disclosure of information to the Maine Historic Preservation Commission 
for the purpose of administering the credit for rehabilitation of historic properties after 
2007 under section 5219-BB and the credit for rehabilitation and weatherization of 
historic homes under section 5219-CCC.
Sec. A-5.  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. A-6.  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. A-7.  36 MRSA §5219-CCC is enacted to read:
§5219-CCC.  Credit for rehabilitation and weatherization of historic homes after 2024
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 rehabilitation, 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 an eligible 
taxpayer's homestead, as defined in section 681, subsection 2, or is used as the eligible 
taxpayer’s homestead within 60 days of the completion of the certified exterior 
rehabilitation, that contains up to 4 dwelling units and that has been certified by the 
Director of the Maine Historic Preservation Commission as a certified historic home 
under Title 27, section 511, subsection 2 and may include any ancillary buildings that 
contribute to the historical significance of the certified historic home, 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.  "Eligible taxpayer" means a taxpayer whose federal adjusted gross income for the 
first year in which the credit allowed under this section may be claimed does not exceed 
$120,000.
E.  "Qualified exterior rehabilitation expenditure" means any amount expended by an 
eligible taxpayer on or after January 1, 2025 that is reasonably related to a certified 
exterior rehabilitation, as determined by the Director of the Maine Historic 
Preservation Commission.
F.  "Residence" has the same meaning as in Title 21-A, section 112, subsection 1.
2.  Credit allowed.  An eligible taxpayer is allowed a credit against the tax imposed 
under this Part equal to 25% of the qualified exterior rehabilitation expenditure of an 
eligible taxpayer who incurs at least $5,000 in qualified exterior rehabilitation expenditures 
for the certified exterior rehabilitation of a certified historic home, up to a maximum credit 
of $50,000 per certified historic home taken within a 5-year period starting from the first 
tax year in which a credit may be claimed.  If an eligible taxpayer does not exceed the 
maximum credit allowed under this section for a single certified exterior rehabilitation 
project, the eligible taxpayer may claim a credit for subsequent certified exterior 
rehabilitation projects, up to the maximum credit per certified historic home within the 
5-year period.  The credit may first be claimed for the taxable year in which the certified 
exterior rehabilitation is placed in service.
3.  Increased credit for 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 $60,000 per certified historic home, if:
A.  For a certified historic home with more than one dwelling unit, the eligible 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; or
B.  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, an eligible taxpayer shall transfer, sell or assign to the subsequent owner the 
credit allowed under this section for the year in which the certified historic home is 
transferred or sold and any remaining portion of the credit for any subsequent years. An 
eligible 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.  Disallowance of future credit; recapture.  The credit allowed under subsection 2 
is subject to disallowance and recapture as provided in this subsection.
A.  Future credits are subject to disallowance if:
(1)  Any exterior alterations are made to the certified historic home without the 
approval of the Director of the Maine Historic Preservation Commission and are 
determined by the director to not be consistent with Title 27, section 511, 
subsection 2, paragraph A; or 
(2)  The certified historic home ceases to be the homestead of the eligible taxpayer 
or the successor eligible taxpayer who has been assigned credits pursuant to 
subsection 6.
The disallowed amount under subparagraph (1) or (2) is equal to the amount of credit 
remaining to be claimed for the taxable year in which the disallowance occurred and 
all subsequent years. 
B.  If an eligible taxpayer claims the income tax credit increase under subsection 3, 
paragraph A, but fails or ceases to rent a dwelling unit to a household with income at 
or below 100% of the median income for the area as agreed, the entire income tax credit 
increase under subsection 3, paragraph A is subject to disallowance and the assessor 
may recapture the tax credit increase allowed under subsection 3.  Notwithstanding the 
3-year time limitation for making an assessment under section 141, the assessor shall 
recapture the amount of the tax credit increase by making an assessment equal to the 
difference between the amount of the increased tax credit allowed under subsection 3 
and the tax credit allowed under subsection 2 for the tax year in which the credit was 
claimed by the eligible taxpayer that actually claimed the credit.
8.  Limitation.  An eligible taxpayer who claims a credit under section 5219-R or 
5219-BB for any portion of a certified historic home may not claim a credit under this 
section for the same certified historic home.
9.  Rules.  The bureau may 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. A-8.  Effective date; application. Those sections of this Part that amend the 
Maine Revised Statutes, Title 36, section 5219-BB, subsection 2, paragraph B and 
subsection 3 take effect January 1, 2025 and apply to applications received on or after 
January 1, 2025 for a tax credit for tax years beginning on or after January 1, 2025.
PART B
Sec. B-1.  36 MRSA §5219-BB, sub-§1, ¶C, as amended by PL 2021, c. 671, §2, 
is further amended to read:
C.  "Certified qualified rehabilitation expenditure" means a qualified rehabilitation 
expenditure, as defined by the Code, Section 47(c)(2), made on or after January 1, 2008 
with respect to a certified historic structure, if:
(1)  For credits claimed under subsection 2, paragraph A, the United States 
Department of the Interior, National Park Service issues a determination on or 
before December 31, 2030 that the proposed rehabilitation of that structure meets 
the Secretary of the Interior's standards for rehabilitation, with or without 
conditions; or
(2)  For credits claimed under subsection 2, paragraph B, the Maine Historic 
Preservation Commission issues a determination on or before December 31, 2030 
that the proposed rehabilitation of that structure meets the Secretary of the Interior's 
standards for rehabilitation, with or without conditions.
For purposes of subsection 2, paragraph B, qualified rehabilitation expenditures 
incurred in the certified rehabilitation of a certified historic structure located in the 
State do not include a requirement that the certified historic structure be substantially 
rehabilitated.
Sec. B-2.  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.  Maximum credit; until 2025. The For tax years beginning before January 1, 2025, 
the credit allowed pursuant to this section and section 2534 may not exceed the greater of:
A.  Five million dollars 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; and
B.  Five million dollars for each building that is a component of a certified historic 
structure for which a credit is claimed under this section.
Sec. B-3.  36 MRSA §5219-BB, sub-§4-A is enacted to read:
4-A.  Maximum credit; beginning 2025.  For tax years beginning on or after January 
1, 2025, the credit allowed pursuant to this section and section 2534:
A.  In the first year in which the credit may be claimed, may not exceed the greater of:
(1)  Ten million dollars 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; and
(2)  Ten million dollars for each building that is a component of a certified historic 
structure for which a credit is claimed under this section;
B.  In the 2nd year in which the credit may be claimed, may not exceed the greater of:
(1)  Ten million dollars minus the credit allowed under paragraph A, subparagraph 
(1) 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; and
(2)  Ten million dollars minus the credit allowed under paragraph A, subparagraph 
(2) for each building that is a component of a certified historic structure for which 
a credit is claimed under this section; and
C.  In the 3rd and subsequent years in which the credit may be claimed, may not exceed 
the greater of:
(1)  Five million dollars 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; and
(2)  Five million dollars for each building that is a component of a certified historic 
structure for which a credit is claimed under this section.
SUMMARY
Part A of this bill makes changes to modernize the existing small project provisions of 
the historic property rehabilitation tax credit, including increasing the eligible percentage 
of the project from 25% to 30% and increasing the expenditure cap from $250,000 to 
$1,000,000. This Part also increases the percentage of credit available for affordable 
housing creation to 35% for significant projects and 45% for small projects.
Part A also establishes a certification process for the rehabilitation and weatherization 
of existing homes and creates an income tax credit for rehabilitation and weatherization of 
certified historic homes equal to 25% of the qualified exterior rehabilitation expenditures 
for a qualified taxpayer whose federally adjusted gross income does not exceed $120,000.  
The percentage of credit that may be claimed increases to 30% if housing is created as part 
of the weatherization and rehabilitation efforts.  This Part also adds the credit for 
rehabilitation and weatherization of historic homes to the report that the Maine Historic 
Preservation Commission provides to the Legislature and requires the report to be provided 
every 5 years instead of biennially.
Part B of this bill changes the maximum tax credit allowed for certified historic 
structure rehabilitation projects for the first 2 years in which a credit may be claimed. It 
changes the maximum from $5,000,000 in each of the first 2 years to $10,000,000 total 
across the first 2 years combined. It makes no changes to the $5,000,000 maximum tax 
credit allowed in subsequent years.  This change applies to tax years beginning on or after 
January 1, 2025.  This Part also eliminates the requirement that eligible projects be certified 
on or before December 31, 2030.