Credit for Rehabilitation of Historic Properties: Credit for Rehabilitation of Historic Properties (2025)

Who files this form

Use this worksheet to claim the Maine credit for qualified rehabilitation expenditures associated with a certified historic structure located in Maine. It covers two types of claims:

• Federal credit claimed: Rehabilitation expenditures for which a federal credit under Internal Revenue Code Section 47 is claimed, with the required National Park Service determination.
• Small rehabilitation without a federal credit: Qualified expenditures of at least $50,000 and no more than $250,000 incurred on or after January 1, 2008, with the required Maine Historic Preservation Commission determination.

Owners of pass-through entities, such as partners, LLC members, S corporation shareholders, and trust beneficiaries, may claim the credit in proportion to their interests or according to an executed agreement among the owners.

Complete a separate worksheet for each portion of a certified rehabilitation and each building that is a component of a certified historic structure.

When it's due

For the tax year 2025 worksheet, the required determination that the proposed rehabilitation meets the Secretary of the Interior’s rehabilitation standards must be issued on or before December 31, 2030:

• By the National Park Service when the federal credit is claimed.
• By the Maine Historic Preservation Commission for a small rehabilitation without a federal credit.

This is a certification determination deadline, not a tax-return filing deadline. The provided text does not state a filing due date for the 2025 return.

What you'll need

Enclose the documents that apply to your claim:

• Box A, federal credit claimed: Part 3 of the historic preservation certification application, approved and signed by the National Park Service, and federal Form 3468.
• Box B, small rehabilitation: Part 3 of the small project rehabilitation certification application, approved and signed by the Maine Historic Preservation Commission. If you do not have an approved application, enclose an explanation of why the rehabilitation has not been approved.
• Reporting forms: Both Parts A and B of the reporting form(s), signed by the Maine Historic Preservation Commission. The worksheet warns that you do not qualify unless the appropriate copies are enclosed.
• Box C, affordable housing: The affordable housing certificate from the Maine State Housing Authority.
• Pass-through entity claim: The federal Schedule K-1 issued to you by the entity.
• Part B, credit recapture: Federal Form 4255.

You will also need your taxpayer name and EIN or SSN, tax-year beginning and ending dates, the property's name and location, its placed-in-service date, and the applicable expenditure amounts. Pass-through owners must provide the entity's name, ID number, ownership percentage, and credit percentage.

How to file

1. Enter your taxpayer and property information, complete any pass-through entity details, and check the applicable boxes A through D.
2. Complete Part A to calculate the credit. Use Part B if credit recapture applies.
3. Transfer the available credit from line 8 to the applicable return:

• Form 1040ME, Schedule A, line 6.
• Form 1040C-ME, Schedule A, line 1.
• Form 1041ME, Schedule A, line 2.
• Form 1120ME, Schedule C, line 2a.
• Form 1120B-ME, line 4d.
• Form INS-4, line 19.

1. Enclose the worksheet and required supporting documents with that return.

For multiple worksheets, add the line 8 amounts. Include credit amounts previously allocated to tax year 2025 from projects first claimed in 2022, 2023, and 2024.

Submit the 2025 worksheet with your 2025 return and save copies to submit with your 2026, 2027, and 2028 returns. Do not complete a new worksheet for those later installments.

The provided text does not give a mailing address or e-file instructions.

Common mistakes

• Leaving out required attachments. The worksheet says you do not qualify unless the appropriate copies are enclosed.
• Combining portions or buildings on one worksheet. Complete a separate worksheet for each rehabilitation portion and each building that is a component of a certified historic structure.
• Forgetting earlier credit installments. Include amounts allocated to 2025 from credits first claimed in 2022, 2023, and 2024.
• Preparing a new worksheet for later installments. Save and submit copies of the original worksheet instead.
• Not updating the Maine claim after a federal change. If box A is checked and the federal credit is amended, the Maine credit must also be amended.
• Keeping a small-project credit after certification is denied. If box B is checked and final certification is later denied, the credit is disallowed for every year claimed. File an amended Maine return if necessary.

Maine Revenue Services may request additional supporting information before processing the return.

Questions people ask

Is the credit refundable?

Yes. The credit is fully refundable over four years. For a credit calculated on the 2025 worksheet, 25% of line 7 is available in each of 2025, 2026, 2027, and 2028.

What percentage applies to my rehabilitation expenditures?

The worksheet uses 25% normally, 35% if either box C or box D is checked, and 45% if both are checked. Box C requires affordable housing certification. Box D requires box A to be checked, a project in an unorganized territory or a Maine municipality with fewer than 12,500 inhabitants under the latest decennial census, and at least 33% of the aggregate square footage used as living accommodations.

When do I claim the credit?

If a federal credit is claimed, claim the Maine credit in the same tax year. A partner using a different tax year claims it in the partner's tax year during which the partnership's tax year generating the federal credit ends. For a small project without a federal credit, claim it in the year the rehabilitated structure is placed in service.

Can the credit have to be repaid?

Yes. The Maine credit is subject to the same recapture provisions as the federal Section 47 credit. Part B calculates Maine recapture. Separately, a certified affordable housing project that does not remain affordable housing for 30 years from its placed-in-service date is subject to repayment provisions.

Official sources

• https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/25_rehab_hist_prop_fillable.pdf