Gov. Janet Mills (D) has signed a partisan bill into law extending Maine’s Affordable Housing Income Tax Credit through 2036.
LD 2116, sponsored by Rep. Ambureen Rana (D-Bangor), was originally intended to make the credit permanent, but the Democratic majority on the Taxation Committee voted to recommend a pared-back proposal.
The Maine Affordable Housing Income Tax Credit was first approved by lawmakers in 2020 with bipartisan support and was modeled after the state’s rehabilitation tax credit.
Under this program, developers who invest in the preservation or construction of affordable housing are eligible to receive state income tax credits.
According to the Governor’s office, this credit led to the preservation of 108 existing units of affordable housing units. An additional 824 units have either been built or are currently slated for construction.
Unlike the original measure, the extension of this tax credit proved to be a more partisan matter.
Members of the Taxation Committee were divided along party lines, a pattern that carried over into the House roll call vote. While Democrats were generally supportive of the bill, Republicans stood in opposition.
During the public hearing held for the bill in January, the Maine Affordable Housing Coalition spoke in support of the proposal to extend the credit, arguing that it “supports local economies and helps Maine people stay in the places they call home.”
It was also highlighted how the tax credit has enabled developers to leverage additional tax credits and funding opportunities.
Testifying in opposition to the bill was the Maine Policy Institute, a nonpartisan nonprofit think tank, which suggested that lawmakers pursue other, more targeted reforms that would encourage and enable the production of affordable housing throughout the state.
Although the original proposal sought to make the tax credits permanent, lawmakers ultimately opted to advance an amended version of the bill that extended the expiration date to 2036.
Click Here for More Information on LD 2116
Gov. Mills signed LD 2116 into law Tuesday.
“During my first term, I was proud to sign legislation creating the Affordable Housing Tax Credit, giving communities across Maine the tools they need to preserve aging housing and create new homes,” said Mills in a statement.
“With support from my Administration and the Legislature, this credit has already helped deliver hundreds of affordable homes for Maine people,” she said. “We have more work to do, but by extending it today, we are one step closer to ensuring every Maine person can find a safe, affordable place to call home.”
With this action, Maine is sustaining real momentum–bringing more housing online, strengthening communities, and supporting the state’s economic future,” said Dan Brennan, Director of MaineHousing. “We thank Governor Mills and the Legislature for their support.”
Bill sponsor Rep. Rana also shared comments in a press release Tuesday.
“The rising cost of living is hurting families across Maine, and nowhere is this problem more glaring than when trying to find an affordable place to live,” said Rana. “Too many Mainers are living month-to-month or even day-to-day, wondering how they’re going to pay rent and keep a roof over their heads.”
“Extending the Affordable Housing Tax Credit will allow us to continue building more units that are desperately needed right now, particularly for working families, seniors and rural communities,” Rana added.
So this is just another form of grifting? Is it for young families trying to build a home or for developers who are donate to the democrat party? No attempt to find out why we have a shortage?
While I appreciate the article, there should be a state mandate, prohibiting pictures of such a hideous creature, to help Mainers keep their breakfast down…….
Hmmm… Sounds like ‘someone’ is trying to suck-up to get votes.
Too little, too late.
Maine people won’t forget what you’ve done to them.
November is coming.