Senate passes Sen. Libby bill to support affordable housing, preservation of historic downtowns

AUGUSTA — On Wednesday, the Maine Senate voted in favor of a bill from Sen. Nate Libby, D-Lewiston, 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,” received unanimous support in the Senate.

“There is a well documented shortage of affordable housing here in Maine. Newspapers are full of headlines about how hard it is for Maine families to find a place to live. This bill would extend a successful tax credit that will not only increase safe, affordable housing stock, but also help preserve the character of our downtowns,” said Sen. Libby. “I’m grateful to my colleagues for their support of this bill.”

As amended, LD 201 would extend 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. 

“The historic rehabilitation tax credit demonstrates that historic preservation is a critical strategy for community revitalization,” said Greg Paxton, executive director of Maine Preservation. “Among many other projects, these credits have been used to rehab 15 vacant or underused mill buildings and 23 abandoned schools across the state, and strengthened instead of dragging down the intown areas around them. And these projects are loved by citizens of our communities, who feel pride in the repurposing for current uses of the historic buildings constructed so well by our predecessors.”

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. 

LD 201 faces further votes in the Legislature.