Sen. Libby to introduce legislation to support affordable housing, preservation of historic downtowns

AUGUSTA — On Thursday, Sen. Nate Libby, D-Lewiston, will introduce a bill to support affordable housing and preserve historic buildings in Maine through the extension of a tax credit program. 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,” is scheduled for a 1 p.m. public hearing before the Legislature’s Taxation Committee.

“A lack of affordable, safe housing is one of the biggest problems facing our state today. This bill would extend a very successful tax credit program that helps preserve historic structures, primarily in downtowns, and makes their redevelopment affordable and practical. Many of these projects provide affordable housing for working families,” said Sen. Libby.  “To protect the character of our downtown neighborhoods for generations to come, and to help working-class Mainers, extending this tax credit just makes sense.”

LD 201 would extend the sunset date for the Maine Historic Rehabilitation Tax Credit (MHRTC) from 2025 to 2040. 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 incentivize 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. 

Since the program was adopted 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. 

A live feed of the public hearing can be found on the Legislature’s website and on the Taxation Committee’s YouTube Channel.