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.
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 5%-10% if the rehabilitation project meets certain affordable housing requirements. Please contact the Maine State Housing Authority (MSHA) for additional eligibility requirements.
There is a "per project" state credit cap of $5 million. State credits are fully refundable, 25% of the credits must be claimed in taxable year in which the property is placed in service, and 25% must be taken in each of the next three (3) taxable years. Only rehabilitation expenditures incurred between January 1, 2008 and December 31, 2023 are eligible for the credit. See the program rules and associated legislation to the right for more information and details.
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