A 25 percent tax credit on Qualified Rehabilitation Expenditures (QREs) is available in Maine for the rehabilitation of certified historic income-producing properties. The state of Maine breaks its historic tax credit into two different categories:
The Substantial Rehabilitation Credit directly follows the federal Historic Tax Credit (HTC) and does not require a separate application form.
The Small Project Credit is for projects with QREs between $50,000 and $250,000 that do not meet the requirements of a substantial rehabilitation as set forth in the federal HTC.
Project cap: $5 million tax credit cap per project for both programs
An additional five percent credit is available in both programs if the rehabilitation includes the creation of affordable housing.
All rehabilitation work must follow the Secretary of the Interior’s Standards for Rehabilitation.
Programs sunsets December 31, 2023.
Who can use the credit?
The tax credit is fully refundable. 25 percent of the credit must be taken in the year the property is put into use, and 25 percent must be taken in the subsequent three years.
Eastland Park Hotel
Client: Rockbridge Capital
Project Costs: $50.5 million
HTC equity: Over $7.3 million
Client: Wishrock Group
Project Costs: $17.4 million
HTC equity: Over $3.3 million