Credit for Affordable Housing: Credit for Affordable Housing (2025)
Maine · Maine Revenue Services · Used for tax years 2025
This worksheet reports the 2025 Maine Credit for Affordable Housing, a fully refundable credit for qualified project expenditures certified by the Maine State Housing Authority. It records the project details and certified credit amount, with a separate worksheet required for eac
Who files this form
Use this 2025 worksheet to claim the Maine Credit for Affordable Housing for qualified expenditures of a Maine affordable housing project certified by the Maine State Housing Authority (MaineHousing).
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, such as partnerships, LLCs, S corporations, and trusts, may claim a share of the credit based on their interests in the entity or an executed written agreement among the owners.
What you'll need
- Affordable Housing Credit Allocation Certificate: You must attach a copy issued by MaineHousing. You do not qualify for the credit without it.
- Taxpayer information: Your name and EIN or SSN.
- Project information: The date the project was placed in service and its street, city, and state. If you check Box A, you also need the taxable year in which you claimed the federal low-income housing tax credit for the project.
- Pass-through entity information, if applicable: The entity's name, EIN or SSN, your ownership percentage, and your credit percentage if different under an executed written agreement.
Maine Revenue Services (MRS) may request additional information supporting the credit before processing the return.
How to file
- Complete a separate worksheet for each certified Maine affordable housing project.
- Enter your taxpayer information and any applicable pass-through entity information.
- Check Box A or Box B, then complete the project details on lines 1 through 3 as applicable.
- Enter the credit amount from the Affordable Housing Credit Allocation Certificate on line 4.
- If you have multiple projects, add line 4 from all completed worksheets.
- Enter the credit total on the applicable return:
- Form 1040ME: Schedule A, Other Tax Credits Worksheet (for Lines 8 and 20), 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.
Enclose the worksheet with the applicable return and attach a copy of the allocation certificate. The text does not provide a mailing address or e-filing directions.
Common mistakes
- Leaving out the allocation certificate: You do not qualify unless a copy is attached.
- Combining projects on one worksheet: Complete a separate worksheet for each certified project, then add the line 4 amounts.
- Skipping the instructions: The worksheet says to read them before completing it.
- Assuming no further support will be needed: MRS may request additional information before the return can be processed.
Questions people ask
Is the credit refundable?
Yes. The credit is fully refundable.
Which taxable year do I claim the credit in?
For a qualified Maine project, claim the entire credit in the later of the first taxable year you claim the federal low-income housing tax credit for the project or the taxable year for which MaineHousing allocates the credit. For other affordable housing projects, claim it in the taxable year for which MaineHousing allocates the credit.
How is the credit amount determined?
For a qualified Maine project, the credit equals the total federal low-income housing tax credit allocated by MaineHousing, computed over the entire federal credit period, or the lesser amount certified by MaineHousing. For other affordable housing projects with at least $100,000 in expenditures includible in eligible basis, the credit is the lesser of 50% of the project's qualified basis or $500,000. Enter the certificate amount on line 4.
Can the credit be recaptured?
Yes. A project that does not remain a credit-qualified affordable housing project for 15 years from its placed-in-service date is subject to recapture by MaineHousing.
Who can I contact for more information?
Contact MaineHousing at (207) 626-4600.