Using the Historic Tax Credit, established under the Baldacci administration with the help of developer Tom Niemann, the Hathaway Center in Waterville came to life with it's renovation. Photo by Ramona du Houx
The Historic Tax Credit Improvement Act was introduced in both the US House and Senate on February 16, 2017). The bill will simplify the federal historic tax credit (HTC) making it easier for small rehabilitation projects that need this incentive to be feasible, by successfully using the credit.
Maine passed a companion HTC in 2008. The federal and state historic credits have been used together in 75 projectscompleted or under construction across the state since, with total investment-
- exceeding $400 million,
- creating more than 5,000 jobs
- 1,200 rental units, 770 of which are affordable housing.
PHOTO: Tom Niemann's project in Waterville, Maine, restored the Hathaway Center, which was a former shirt factory and a major business in town. Attention to detail and strict adherence to the preservation laws really makes this project stand out as the best in Maine. Niemann helped the state draft the Historic Preservation Act. Photo: Ramona du Houx
The federal and state credits together have resulted in 5 times as many projects and 9 times the investment as prior to 2008. But the average project size is over $5 million. Many small projects now cannot use the federal credit, which this bill would fix.
Both the House and Senate companion bills have bipartisan sponsors and co-sponsors. This is Sen. Sussan Collins's bill in the Senate.
"Senator Collins is spot on with this proposed legislation. Similar to the Maine legislation, these improvements to the Federal Program will make smaller projects on many Main Streets and in rural areas in Maine more feasible. We should do all we can to support this in order to continue the strong revitalization efforts in Maine, create even more jobs, and more economic vitality!" said Tom Niemann developer of the renovated Hathaway Center, in Waterville, Maine.
660 Congress Street renovation with Maine's Historic Tax Credits. Before and After photos
"The historic tax credits have been an important incentive for Maine communities. These rehabilitation projects have repurposed abandoned schools, mills, inns, and apartment buildings transforming Biddeford & Saco, Norway, Portland, Lewiston, Dover-Foxcroft, Waterville, and many other towns across the state," said Maine Preservation Executive Director Greg Paxton.
"These projects raise the spirits of Mainers who see these formerly dilapidated buildings put to good use, and help reverse the decline of their surrounds by spurring additional activity. Plus, due to income sales and property taxes paid for to complete and operate these projects, they pay for themselves. But it is currently too difficult for small projects to use the federal tax credit, and Senator Collins excellent bipartisan bill would fix that.”
Dover Foxcroft renovation - before and after - made possible with historic tax credits.