Sec. 1. 36 MRSA §5219-Q is enacted to read:

§5219-Q.__Rehabilitation of historic properties tax credit

1.__Definitions.__As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

A.__"Qualified costs" are those activities that contribute to the rehabilitation of a historic building that are defined by the Standards for Rehabilitation issued by the United States Secretary of the Interior.

B.__"Rehabilitation project" means a project undertaken by the owner or lessee of an income-producing building or other structure located within a national historic district or listed in or eligible for listing in the National Register of Historic Places to rehabilitate that building or other structure.__The project must be reviewed and approved by the certified local government or the Maine Historic Preservation Commission if there is no certified local government to approve the project.__The reviewing commission's or certified local government's fee may not be less than $250 or more than $1,000 based on the cost of the project.__In approving a project, the reviewing commission or certified local government must use the Standards for Rehabilitation issued by the United States Secretary of the Interior and the Uniform Code for Building Conservation.

2.__Credit.__A taxpayer who has incurred qualified costs equal to or exceeding $5,000 during the taxable year is allowed a credit against the tax imposed by this Part for each taxable year equal to 20% of the total cost of rehabilitation of historic properties located within the State for the tax year.__This credit applies to tax years beginning on or after January 1, 2000.

3.__Limitations.__The amount of credit allowed in subsection 2 may not exceed $100,000.__In no case may this credit reduce the Maine income tax to less than zero.

4.__Carry over.__Any unused credit as a result of the limitation imposed by subsection 3 may be carried over to the following year or years for a period not to exceed 5 years.

5.__Recapture.__If a taxpayer disposes of a rehabilitated historic property within 5 years of completion of the rehabilitation project, the tax imposed by this Part for the

taxable year in which the disposition occurs is increased by the following amounts: