Chapter 539
H.P. 1651 - L.D. 2289
PART WW
Sec. WW-1. 27 MRSA §511  is enacted to read:
1. Program.
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The director shall administer, in consultation with the Department of Administrative and Financial Services, Bureau of Revenue Services, a program in support of state rehabilitation tax credits for income-producing historic structures pursuant to Title 36, section 5219-BB.
2. Certification.
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The director shall certify information necessary for applicants to demonstrate eligibility for an income tax credit under Title 36, section 5219-BB, including, but not limited to: A. That rehabilitations of certified historic structures are consistent with the United States Secretary of the Interior's Standards for Rehabilitation;
B. That historic structures are listed in or are eligible for listing in the National Register of Historic Places or are in certified local districts; and
C. The amount of qualified rehabilitation expenditures associated with each project for which an income tax credit will be claimed.
When performing the certification required by this subsection, the director shall interpret the provisions of this subsection in a manner consistent with the provisions of the federal Internal Revenue Code, Section 47.
3. Administration.
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The director may provide forms, instructions and guidelines necessary for an applicant to apply for certification under the program.
4. Fees.
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The director may establish a schedule of processing fees, the proceeds of which must be used by the director solely for the support of the administration of certifications under this section. The processing fees collected by the director must be placed in a nonlapsing historic rehabilitation certification fund to be used solely by the director for the administration of certifications required under this section.
5. Reports.
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The Maine Historic Preservation Commission shall issue the following reports. A. The Maine Historic Preservation Commission shall issue a report by March 1st of each year that identifies the approved and certified state historic preservation certification applications and documents the number of affordable housing units created, total housing units created, number of affordable housing units preserved, total aggregate square footage rehabilitated and developed, total aggregate square footage of housing, total aggregate square footage of affordable housing, total certified rehabilitation expenses and total new construction expenses.
B. By January 15, 2013, the Maine Historic Preservation Commission shall analyze the use of tax credits provided under Title 36, section 5219-BB as an incentive for rehabilitation of historic structures and economic development, analyze tax and other revenues generated by the rehabilitation to determine in relation to the cost of the credit if they exceed the costs of the credit and report the results of its analysis to the joint standing committee of the Legislature having jurisdiction over taxation matters with recommendations as to whether the credits under Title 36, section 5219-BB should be extended, repealed or amended. The joint standing committee may submit legislation related to the report.
Sec. WW-2. 36 MRSA §4641-B, sub-§4,  as amended by PL 2007, c. 240, Pt. H, §1 and c. 427, §1, is repealed and the following enacted in its place:
4. Distribution of State's share of proceeds.
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The State Tax Assessor shall pay all net receipts received pursuant to this section to the Treasurer of State and shall at the same time provide the Treasurer of State with documentation showing the amount of revenues derived from the tax imposed by section 4641-A, subsection 1 and the amount of revenues derived from the tax imposed by section 4641-A, subsection 2. A.Â
The Treasurer of State shall credit 1/2 of the revenues derived from the tax imposed by section 4641-A, subsection 1 to the General Fund and shall monthly pay the remaining 1/2 of such revenues to the Maine State Housing Authority, which shall deposit the funds in the Housing Opportunities for Maine Fund created in Title 30-A, section 4853, except that:
(1) In fiscal year 2003-04, fiscal year 2004-05 and fiscal year 2005-06, $7,500,000 of the remaining 1/2 of those revenues must be transferred to the General Fund before any payments are made to the Maine State Housing Authority;
(2) In fiscal year 2006-07, $7,687,067 of the remaining 1/2 of those revenues must be transferred to the General Fund before any payments are made to the Maine State Housing Authority;
(3) In fiscal year 2007-08 and fiscal year 2008-09, $5,000,000 of the remaining 1/2 of those revenues must be transferred to the General Fund before any payments are made to the Maine State Housing Authority;
(4) In fiscal year 2008-09, $90,000 of the remaining 1/2 of those revenues must be transferred to the General Fund before any payments are made to the Maine State Housing Authority;
(5) In fiscal year 2009-10, $3,320,000 of the remaining 1/2 of those revenues must be transferred to the General Fund before any payments are made to the Maine State Housing Authority;
(6) In fiscal year 2010-11, $3,720,000 of the remaining 1/2 of those revenues must be transferred to the General Fund before any payments are made to the Maine State Housing Authority;
(7) In fiscal year 2011-12, $3,830,000 of the remaining 1/2 of those revenues must be transferred to the General Fund before any payments are made to the Maine State Housing Authority;
(8) In fiscal year 2012-13, $3,950,000 of the remaining 1/2 of those revenues must be transferred to the General Fund before any payments are made to the Maine State Housing Authority; and
(9) In fiscal year 2008-09, $2,972,414 of the remaining 1/2 of those revenues must be transferred to the General Fund before any payments are made to the Maine State Housing Authority.
B. Neither the Governor nor the Legislature may divert the revenues payable to the Housing Opportunities for Maine Fund to any other fund or for any other use. Any proposal to enact or amend a law to allow distribution of less than 1/2 of the revenues derived from the tax imposed by section 4641-A, subsection 1 to the Housing Opportunities for Maine Fund, as adjusted under paragraph A, must be submitted to the Legislative Council and to the joint standing committee of the Legislature having jurisdiction over affordable housing matters at least 30 days prior to any vote or public hearing on the proposal.
C. The Treasurer of State shall credit to the General Fund all of the revenues derived from the tax imposed by section 4641-A, subsection 2.
Sec. WW-3. 36 MRSA §5219-R, sub-§1,  as enacted by PL 2005, c. 519, Pt. H, §1, is amended to read:
1. Credit allowed.
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A taxpayer is allowed a credit against the tax imposed under this Part equal to the amount of credit claimed by the taxpayer for the taxable year under Section 47 of the Code with respect to expenditures incurred after December 31, 1999 for a certified historic structure located in the State. The credit is nonrefundable and is limited to $100,000 annually per taxpayer. A credit received under this section is subject to the same recapture provisions, as apply to a credit received under Section 47 of the Code and to any available federal carry-back or carry-forward provisions. A credit may not be claimed under this subsection for expenditures incurred after December 31, 2007.
Sec. WW-4. 36 MRSA §5219-BB  is enacted to read:
1. Definitions.
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As used in this section, unless the context otherwise indicates, the following terms have the following meanings. A. "Affordable housing" means a decent, safe and sanitary dwelling, apartment or other living accommodation for a household whose income does not exceed 60% of the median income for the area as defined by the United States Department of Housing and Urban Development under the United States Housing Act of 1937, Public Law 412, 50 Stat. 888, Section 8, as amended.
B. "Certified historic structure" means a structure that has been certified as a historic structure under Title 27, section 511.
C. "Certified qualified rehabilitation expenditure" means a qualified rehabilitation expenditure made between January 1, 2008 and December 31, 2013 certified by the director under Title 27, section 511. For purposes of subsection 2, paragraph B, qualified rehabilitation expenditures incurred in the certified rehabilitation of a certified historic structure located in the State do not include a requirement that the certified historic structure be substantially rehabilitated.
D. "Director" means the director of the Maine Historic Preservation Commission.
2. Credit allowed.
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A taxpayer is allowed a credit against the tax imposed under this Part: A. Equal to 25% of the taxpayer's certified qualified rehabilitation expenditures for which a tax credit is claimed under Section 47 of the Code for a certified historic structure located in the State; or
B. Equal to 25% of the certified qualified rehabilitation expenditures of a taxpayer who incurs not less than $50,000 and up to $250,000 in certified qualified rehabilitation expenditures in the rehabilitation of a certified historic structure located in the State and who does not claim the federal credit with regard to those expenditures. The credit may be claimed for the taxable year in which the certified historic structure is placed in service, except that a credit may not be claimed for expenditures incurred before January 1, 2008 or after December 31, 2013.
A taxpayer is allowed a credit under paragraph A or B but not both.
3. Increased credit for affordable housing.
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The credit allowed under this section is increased to 30% of certified qualified rehabilitation expenditures if the project is also an affordable housing project. The 30% credit is available only for projects for which at least 50% of the aggregate square feet of the completed project is housing of which at least 50% of the aggregate square feet of the completed housing creates new affordable housing or for which at least 33% of the aggregate square feet of the completed project creates new affordable housing. Affordable housing created using the 30% credit must remain affordable for 30 years pursuant to a mechanism acceptable to the Maine State Housing Authority. The mechanism must provide that if the property does not remain affordable for 30 years, the owner of the property must pay to the Housing Opportunities for Maine Fund under Title 30-A, section 4853 an amount equal to the credit increase allowed to the taxpayer under this subsection plus interest at the rate of 7% per annum beginning when the property is placed in service and ending upon payment. By August 1, 2009 and annually every August 1st thereafter to 2013, the Maine Historic Preservation Commission and the Maine State Housing Authority shall review the report issued pursuant to Title 27, section 511, subsection 5, paragraph A to determine the percentage of the total aggregate square feet rehabilitated and developed using both the 25% credit under subsection 2 and the 30% credit under this subsection that constitutes new affordable housing. If the total aggregate square feet of new affordable housing does not equal or exceed 30% of the total aggregate square feet of rehabilitated and developed completed projects eligible for a credit under this section, the commission and the authority shall notify the State Tax Assessor and the credit authorized in subsection 2, paragraph B is increased by 1% for that tax year and for each succeeding year in which the 30% affordable housing threshold is not reached until a maximum credit rate of 35% is reached.
4. Maximum credit.
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The credit allowed pursuant to this section may not exceed $5,000,000 for each certified rehabilitation project under Section 47 of the Code placed into service in the State during the taxable year for which a credit is claimed under this section.
5. Timing of credit.
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Twenty-five percent of the credit allowed pursuant to this section must be taken in the taxable year the property is placed into service and 25% must be taken in each of the next 3 taxable years.
6. Credit refundable.
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The credit allowed under this section is fully refundable.
7. Allocation of credit.
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Credits allowed to a partnership, a limited liability company taxed as a partnership or multiple owners of property must be passed through to the partners, members or owners respectively pro rata in the same manner as under section 5219-G, subsection 1 or pursuant to an executed agreement among the partners, members or owners documenting an alternate allocation method.
8. Recapture.
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A credit received under this section is subject to the same recapture provisions as apply to a credit received under Section 47 of the Code.
9. Limitation.
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A taxpayer who is eligible to claim a credit under section 5219-R, whether or not a credit is actually claimed, may not claim a credit under this section. In addition, a credit may not be claimed under this section with respect to expenditures incurred for rehabilitation of Building No. 2 in the Lockwood Mill Historic District in the City of Waterville.
Sec. WW-5. Appropriations and allocations. The following appropriations and allocations are made.
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
Revenue Services - Bureau of 0002
Initiative: Provides one-time funds for the computer programming costs associated with the tax credit for the rehabilitation of historic properties.
| GENERAL FUND |
2007-08 |
2008-09 |
|
All Other
|
$0 |
$44,000 |
|
 |
|
| GENERAL FUND TOTAL |
$0 |
$44,000 |
| ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF |
|
|
| DEPARTMENT TOTALS |
2007-08 |
2008-09 |
|
|
|
|
GENERAL FUND
|
$0 |
$44,000 |
|
|
|
| DEPARTMENT TOTAL - ALL FUNDS |
$0 |
$44,000 |
HISTORIC PRESERVATION COMMISSION, MAINE
Historic Commercial Rehabilitation Fund N029
Initiative: Establishes a base allocation for the Historic Commercial Rehabilitation Fund to support the administration costs associated with certifying rehabilitations of certified historic structures.
| OTHER SPECIAL REVENUE FUNDS |
2007-08 |
2008-09 |
|
All Other
|
$0 |
$500 |
|
|
|
| OTHER SPECIAL REVENUE FUNDS TOTAL |
$0 |
$500 |
| HISTORIC PRESERVATION COMMISSION, MAINE |
|
|
| DEPARTMENT TOTALS |
2007-08 |
2008-09 |
|
|
|
|
OTHER SPECIAL REVENUE FUNDS
|
$0 |
$500 |
|
|
|
| DEPARTMENT TOTAL - ALL FUNDS |
$0 |
$500 |
| SECTION TOTALS |
2007-08 |
2008-09 |
|
|
|
|
GENERAL FUND
|
$0 |
$44,000 |
|
OTHER SPECIAL REVENUE FUNDS
|
$0 |
$500 |
|
|
|
| SECTION TOTAL - ALL FUNDS |
$0 |
$44,500 |