Federal Tax Incentive Program
Income tax incentives for the rehabilitation of historic structures are important tools for historic preservation and economic development throughout the United States. A federal income tax credit for the rehabilitation of historic structures first appeared in 1976 and today consists of a 20% credit for the certified rehabilitation of certified historic structures. For more information regarding the Federal Tax Incentive Program, please see the National Park Service website.
State Historic Rehabilitation Tax Credit
The Maine Historic Preservation Commission administers the state historic rehabilitation tax credit in consultation with the Department of Administrative and Financial Services, Bureau of Revenue Services. The Commission strongly recommends that prospective applicants carefully review the program rules and application instructions prior to submitting applications or commencing work.
Maine's State Historic Rehabilitation Tax Credit Program includes the following incentives:
The "Substantial Rehabilitation Credit"
A 25% state credit for any rehabilitation that also qualifies for the 20% federal credit. The rehabilitation must meet all of the requirements of the Federal tax incentive program and the application must be submitted in accordance with the procedures at the following link:
The "Small Project Rehabilitation Credit"
A 25% state credit for the rehabilitation of certified historic structures with certified qualified rehabilitation expenditures of between $50,000 and $250,000. This credit is available to entities that do not claim the federal rehabilitation credit. Applicants must meet all federal tax code qualifications except the substantial investment requirement.
The "Affordable Housing Rehabilitation Credit Increase"
The State Substantial Rehabilitation Credit and the Small Project Rehabilitation Credit may be increased an additional 10% if the rehabilitation project meets certain affordable housing requirements. Please contact the Maine State Housing Authority (MSHA) for additional eligibility requirements.
If you are considering submitting an application, or if you have any questions, please contact:
Rehabilitation Tax Credit Coordinator
Maine Historic Preservation Commission
55 Capitol Street
Augusta, ME 04333
If you have specific tax related questions, please contact:
Maine Revenue Services
Business Taxes Section
51 Commerce Center Drive
Augusta, ME 04333