An Act to Increase the Maximum Amount of the Historic Property Rehabilitation Tax Credit That May be Taken in a Year
Summary
LD 146 amends Maine’s historic property rehabilitation tax credit law to increase the annual cap on credits that may be claimed. Under current law, the maximum credit allowed in a year is generally $5 million for a certified rehabilitation project and $5 million for each building that is part of a certified historic structure. The bill raises that ceiling to $10 million for the first year in which the credit may be claimed, then allows a reduced $10 million cap in the second year based on credits already claimed, and returns the cap to $5 million in the third and later years.
The bill is aimed at larger historic preservation and redevelopment projects by allowing more tax credit value to be used sooner. It does not change who is eligible for the credit, but it changes the timing and amount of credits that can be taken against Maine income tax and corporate tax liability under the historic rehabilitation credit provisions.
Impact
The bill amends 36 MRSA §5219-BB, the statute governing Maine’s historic property rehabilitation tax credit, and makes a corresponding change to the related corporate tax provision in section 2534. Its practical effect is to increase the annual statewide cap on credits for qualifying historic rehabilitation projects, especially in the first two years after the new rule takes effect, which may accelerate use of the credit for large projects and affect state tax revenue timing.
Sentiment
No committee transcripts or recorded votes were provided, so there is no documented debate to characterize. Based on the bill text alone, the measure appears to be a targeted economic development and preservation proposal with a neutral-to-supportive policy posture, since it expands an existing credit rather than creating a new tax preference.
Contention
The bill text itself does not identify any explicit opposition or disputed provisions. The likely policy tension is between supporters of historic preservation and downtown redevelopment, who may favor a higher cap to make large rehabilitation projects feasible, and fiscal critics who may be concerned about the cost to state revenues or the concentration of tax benefits in a small number of large projects. However, no specific objections were recorded in the materials provided.
Establishes the large projects historic rehabilitation tax credit and the "white elephant" housing historic rehabilitation projects tax credit program for qualified rehabilitation expenditures totaling fifty million dollars or more with respect to a certified historic structure that has been vacant, as determined by local code enforcement or other reasonable means, for at least ten of fifteen consecutive years preceding the date of the taxpayer's application for the rehabilitation credit.
Establishes the large projects historic rehabilitation tax credit and the "white elephant" housing historic rehabilitation projects tax credit program for qualified rehabilitation expenditures totaling fifty million dollars or more with respect to a certified historic structure that has been vacant, as determined by local code enforcement or other reasonable means, for at least ten of fifteen consecutive years preceding the date of the taxpayer's application for the rehabilitation credit.
An act to amend Section 17053.91 of, and to add and repeal Sections 17053.92 and 23692 of, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
Amends sections of law relative to historic tax credits including increasing the maximum project credit and implementing requirements relative to following prevailing wage requirements..