Sen. Libby bill to support affordable housing, preserve historic downtowns signed into law by Gov. Mills

AUGUSTA — On Wednesday, April 27, Gov. Janet Mills signed into law a bill from Sen. Nate Libby, D-Lewiston, extending the Maine Historic Rehabilitation Tax Credit. LD 201, “An Act To Reduce Greenhouse Gas Emissions and Promote Weatherization in the Buildings Sector by Extending the Sunset Date for the Historic Property Rehabilitation Tax Credit,” seeks to improve access to affordable housing while also preserving Maine’s historic buildings. 

“The Maine Historic Rehabilitation Tax Credit has proven to be a very successful program. Since the start of the program, hundreds and hundreds of residential and commercial spaces have been created in buildings that already existed but may have been underutilized. Giving these buildings new life is good for our economy and our way of life,” said Sen. Libby. “With Maine facing the affordable housing crisis that it is, I am grateful for this program and grateful that this bill became law.” 

The new law extends the sunset date for the Maine Historic Rehabilitation Tax Credit (MHRTC) from 2025 to 2030. The MHRTC incentivizes business and real estate owners as well as property developers to rehabilitate and reuse income-producing historic buildings in Maine. The credit encourages investment in downtown areas to spur revitalization, and to create affordable housing. The MHRTC helps encourage redevelopment of housing located within walking distance of downtown stores and services, which reduces the need for new construction and the dependence on motorized transportation. 

“Maine’s Historic Rehabilitation Tax Credit not only incentivizes historic preservation and community revitalization, but increases housing opportunity, creates jobs, bolsters economic growth, and addresses climate goals,” said Tara Kelly, executive director of Maine Preservation. “We are thrilled that the Legislature has recognized the value of this critical program.” 

Since the program began in 2008, almost 1,300 affordable homes have been created or preserved, and almost 700 new full-time, year-round jobs have been generated by businesses occupying commercial spaces and in building maintenance. To date, the program has generated $3 million more in state and local tax revenues than it has cost in tax credits. 

LD 201 will take effect 90 days after the Legislature adjourns sine die.