Maine’s "Substantial Rehabilitation Credit" is a 25% state credit for any rehabilitation that also qualifies for the Federal Tax Incentive Program. This credit is so named because a rehabilitation under the Federal program is required to meet the "substantial rehabilitation" threshold, meaning the rehabilitation expenditures must exceed the adjusted basis of the property or $5,000, whichever is greater.
The Substantial Rehabilitation Credit is a "piggyback" onto the Federal credit, does not require a separate State application, and cannot be claimed unless the Federal credit is also claimed. In order to apply for this state credit, the applicant must follow the requirements of the Federal tax incentive program.
The three-part federal Historic Preservation Certification Application (HPCA) forms and supplemental materials must be submitted in accordance with the Federal application instructions, along with Parts A and B of the Maine State Rehabilitation Tax Credit Reporting Form. Please carefully review the Internal Revenue Service information and Maine's Historic Rehabilitation Tax Credit Rules (Chapter 813) prior to application.