§ 36 §5219-BB — Credit for rehabilitation of historic properties after 2007

Maine § 36 §5219-BB

• Jurisdiction: Maine
• Title 36: TAXATION
• Part 8: INCOME TAXES
• Ch. 822: TAX CREDITS

Text

1.
Definitions.
As used in this section, unless the context otherwise indicates, the following terms have the following meanings.
2.
Credit allowed.
A taxpayer is allowed a credit against the tax imposed under this Part:
3.
Increased credit for a certified affordable housing project.
The credit allowed under this section is increased to 30% 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.
4.
Maximum credit.
For tax years beginning before January 1, 2025, the credit allowed pursuant to this section and section 2534 may not exceed the greater of:
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:
5.
Timing of credit.
Twenty-five percent 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.
6.
Credit refundable.
The credit allowed under this section is refundable.
7.
Allocation of credit.
Credits allowed to a partnership, a limited liability company taxed as a partnership or multiple owners of property must be passed through to the partners, members or owners respectively pro rata in the same manner as under section 5219‑G, subsection 1 or pursuant to an executed agreement among the partners, members or owners documenting an alternate allocation method. Credits may be allocated to partners, members or owners that are exempt from taxation under Section 501(c)(3), Section 501(c)(4) or Section 501(c)(6) of the Code, and those partners, members or owners must be treated as taxpayers for the purposes of this subsection.
8.
Recapture.
A credit received under subsection 2 is subject to the same recapture provisions as apply to a credit received under Section 47 of the Code.
9.
Limitation.
A taxpayer who is eligible to claim a credit under section 5219‑R, whether or not a credit is actually claimed, may not claim a credit under this section. In addition, a credit may not be claimed under this section with respect to expenditures incurred for rehabilitation of Building No. 2 in the Lockwood Mill Historic District in the City of Waterville.
10.
Increased credit for certified qualified rehabilitation expenditures in rural areas with housing component.
For tax years beginning on or after January 1, 2025, the credit allowed under this section is increased to 35% of certified qualified rehabilitation expenditures for which a tax credit is claimed under Section 47 of the Code for a certified historic structure located in a rural area of the State as long as not less than 33% of the aggregate square feet of that structure constitutes apartments, dwellings or other living accommodations. If the rehabilitation of the certified historic structure is also a certified affordable housing project, then the credit allowed under this section is increased by a further 10 percentage points.

Legislative History

PL 2007, c. 539, Pt. WW, §4 (NEW). PL 2007, c. 690, §1 (NEW). PL 2007, c. 693, §32 (AMD). PL 2007, c. 693, §37 (AFF). PL 2009, c. 141, §1 (RP). PL 2009, c. 361, §28 (AMD). PL 2009, c. 361, §37 (AFF). PL 2011, c. 240, §38 (AMD). PL 2011, c. 453, §§7-9 (AMD). PL 2011, c. 548, §31 (AMD). PL 2013, c. 550, §1 (AMD). PL 2013, c. 550, §2 (AFF). PL 2017, c. 170, Pt. E, §6 (AMD). PL 2019, c. 379, Pt. C, §4 (AMD). PL 2019, c. 659, Pt. J, §§2, 3 (AMD). PL 2021, c. 671, §2 (AMD). PL 2025, c. 444, §§1, 2 (AMD). PL 2025, c. 499, §§1, 2 (AMD). PL 2025, c. 499, §3 (AFF).