January 30, 2026
Senator Rotundo, Representative Gatinne, and Honorable Members of the Joint Standing Committee on Appropriations and Financial Affairs,
GrowSmart Maine is a statewide non-partisan non-profit organization helping communities navigate change in alignment with smart growth. We advocate for smart growth policies and investments, share in thought leadership, host convenings, and provide technical assistance toward smart growth practices and outcomes. All this to ensure Maine communities are places where people feel safe, that they belong, and where they can thrive.
I write to request that LD 435, An Act To Expand The Historic Property Rehabilitation Tax Credit, be funded when the Appropriations decisions are made later this session. This bill enhances Maine’s downtowns and villages, encourages investments in historic homes and smaller scale commercial buildings all across Maine thereby drawing development pressure away from undeveloped farmland, open space, and forests. This means that a home someone can afford to purchase is also affordable to live in.
We are joined in this request by several businesses and a municipality affiliated with our board members. These are:
Here’s why this bill is worthy of investment. It will:
- Eliminate the sunset provision, making the program permanent for all uses! This is a very big deal for anyone in historic preservation.
- Improve the existing small credit by increasing the base credit from 25% to 30% and raising the qualified rehabilitation expenditure cap from $250,000 to $1,000,000. This credit can only be used once per property owner, while the tax credit for substantial projects can be used repeatedly for phases of a project.
- Create a 25% tax credit for historic owner-occupied residences and ancillary structures with a minimum homeowner expense of $5,000 and maximum $250,000 for homeowners with an Adjusted Gross Income at or below $120,000. Energy efficiency and resiliency upgrades are included in the qualified expenditures.
- An additional 5% could be obtained for properties that: include an affordable dwelling unit provided to a renter at or below 100% of Area Median Income; or have been vacant for more than five years.
If you’re still not convinced, I’d appreciate the opportunity to talk with you, and I invite you to review the resource page below with further information.
https://www.mainepreservation.org/maine-historic-rehabilitation-tax-credit
In addition, our original support for the bill can be found HERE.