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City staff testifies in support of state bills to expand historic rehabilitation tax credits
Summary
At the March 13 meeting city staff reported providing testimony in favor of two Maine legislative measures — one to allow greater front-loading of credits for large certified historic rehabilitation projects (LD 146) and another (LD 435) to modernize small-project provisions and extend benefits to residential historic properties.
City staff told the Historic Preservation Commission on March 13 that they provided testimony in favor of two pending state bills that would alter the Maine historic rehabilitation tax credit program.
Staff described LD 146 as a bill that would change the maximum credit allowed for certified historic-structure rehabilitation projects in the first two years in which a credit may be claimed. Under the bill the ceiling would move from $5 million in each of the first two years to $10 million total across the first two years combined; the change would apply to tax years beginning on or after Jan. 1, 2025.
Separately, staff described LD 435 as a measure that would modernize the program's small-project provisions: it would raise the eligible percentage from 25% to 30% and increase the per-project expenditure cap from $250,000 to $1 million. Staff said the bill also increases the percentage of credit available for projects that create affordable housing (to 35% for significant projects and 45% for small projects) and clarified that certain provisions would apply to owner-occupied residential properties in historic districts as well as income-producing properties.
City staff told commissioners they had provided positive testimony to the Legislature in support of both bills, describing them as steps to help owners of historic buildings cover rising construction costs and to encourage rehabilitation and affordable housing creation. "Some of these projects'...go over $5,000,000 and we all have seen construction costs go up... This gives them that flexibility," a staff member said in support during the meeting.
Status: staff reported the measures were in legislative work sessions at the time of the meeting; LD 435 had been scheduled for work session and LD 146 had been acted on by committee with the change described in staff remarks.
