Credit for Affordable Housing: Credit for Affordable Housing (2024)
Maine · Maine Revenue Services · Used for tax years 2024
The 2024 Maine Credit for Affordable Housing worksheet reports project details and the credit amount certified by the Maine State Housing Authority. The credit is fully refundable, and a separate worksheet must be completed for each certified affordable housing project.
Who files this form
Use this tax year 2024 worksheet to claim the Maine Credit for Affordable Housing for qualified expenditures of an affordable housing project certified by the Maine State Housing Authority, also called MaineHousing. The project must be a qualified low-income housing project under IRC Section 42(g) located in Maine.
The worksheet covers two credit types:
- Box A: A credit based on the federal low-income housing tax credit allocated by MaineHousing for a qualified Maine project.
- Box B: A credit based on qualified basis expenditures for which the federal low-income housing tax credit is not claimed.
Owners of pass-through entities, including partners, members, shareholders and beneficiaries, may claim a credit in proportion to their interests or according to an executed written agreement among the owners.
What you'll need
Have these items ready:
- A copy of the Affordable Housing Credit Allocation Certificate issued by MaineHousing. You must attach it to qualify for the credit.
- Your taxpayer name and EIN or SSN.
- The project's street address, city and state, and the date it was placed in service.
- The credit amount listed on the certificate.
- If checking Box A, the taxable year in which you claimed the federal low-income housing tax credit for the project.
- If claiming through a pass-through entity, its name and EIN or SSN, your ownership percentage, and your credit percentage if different under an executed written agreement.
Maine Revenue Services may request additional information supporting the credit before processing the return.
How to file
- Complete a separate worksheet for each certified affordable housing project.
- Enter your taxpayer information and any applicable pass-through entity information.
- Check Box A or Box B, as applicable, and complete the project details.
- Enter the credit amount from the MaineHousing certificate on line 4. If you have multiple projects, add line 4 from all completed worksheets.
- Report the credit on the applicable return:
- Form 1040ME: Schedule A, Lines 7 and 19 Other Tax Credits Worksheet, line 1.
- Form 1040C-ME: Schedule A, line 2.
- Form 1041ME: Schedule A, line 4.
- Form 1120ME: Schedule C, line 2c.
- Form INS-4: Line 19.
- Attach a copy of the Affordable Housing Credit Allocation Certificate and enclose the worksheet with the applicable return.
The supplied text does not give a mailing address or e-filing instructions.
Common mistakes
- Leaving out the allocation certificate. You do not qualify for the credit unless a copy of the MaineHousing certificate is attached.
- Combining projects on one worksheet. A separate worksheet is required for each certified Maine affordable housing project. Add the line 4 amounts to determine your total available credit.
- Skipping the instructions. The worksheet specifically says to read them before completing it.
- Overlooking a request for supporting information. Maine Revenue Services may need additional information before the return can be processed.
Questions people ask
Is the credit refundable?
Yes. The Credit for Affordable Housing is fully refundable.
Which taxable year should I claim the credit in?
For a qualified Maine project, claim the entire credit in the later of the first taxable year in which the federal low-income housing tax credit for the project is claimed or the taxable year for which MaineHousing allocated the credit. For all other affordable housing projects, claim it in the taxable year for which MaineHousing allocated the credit.
Can the credit be recaptured?
Yes. A project that does not remain a credit-qualified affordable housing project for 15 years from the date it was placed in service is subject to recapture by MaineHousing.
Who can I contact for more information?
Contact MaineHousing at (207) 626-4600.