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.

Statutes affected:
Bill Text LD 435, HP 289: 27.511, 36.5219