Tax panel rejects immediate extension of Maine affordable housing tax credit; members urge waiting for evaluation

The Joint Standing Committee on Taxation debated whether to make Maine’s affordable housing income tax credit permanent, with members split over acting now or waiting for a full program evaluation.

Jessica Griswold, the committee analyst, told lawmakers LD 2116 would remove the statutory sunset scheduled for Dec. 31, 2028 and make the affordable housing income tax credit permanent. She summarized the program’s structure, noting roughly $80 million of refundable tax credits available, a 45‑year recapture period if projects cease to qualify and a full tax-expenditure review expected by March 2027.

Senator Bruce Bickford moved to amend the bill to extend the sunset to Dec. 31, 2036; Representative Friedman seconded. Supporters argued the extension would preserve the credit while additional evaluation proceeds. Representative Tracy Quint said she opposed acting before the committee received the full evaluation: “I am opposed until the full report comes out,” she said, urging the legislature to defer removal of the sunset until the March 2027 review is available.

Representative Gregory Swallow asked technical questions about the credit marketplace, and members noted that credits are commonly resold at roughly 70–80 cents on the dollar to raise upfront capital for developers. Griswold reiterated that the administration’s Office of Policy Innovation had recommended extending the sunset to 12/31/2036 but that independent review was pending.

On a roll call, the amendment to extend the sunset failed (in favor: Harriman, Saer, Bickford, Friedman; opposed: Swallow, Quint, Rudnicki, Levine, White). With the amendment defeated, the program remains scheduled to sunset on Dec. 31, 2028 unless the Legislature takes later action. The committee then moved on to other bills on its agenda.