Rehabilitation Of Historic Properties Tax Credit Worksheet 2007 (Page 2 of 2) in pdf

2007

REHABILITATION OF HISTORIC PROPERTIES TAX CREDIT

WORKSHEET INSTRUCTIONS

This credit is equal to the federal rehabilitation credit, including carryovers, claimed in accordance with the Internal Revenue

Code § 47 with respect to a certiﬁ ed historic structure located in Maine. The Maine credit is nonrefundable and is limited

to $100,000 annually per taxpayer. The Maine credit is subject to the same recapture provisions imposed by the Internal

Revenue Code (“IRC”) on the federal credit. The IRC states that if during any taxable year, investment credit property is

disposed of, or otherwise ceases to be investment credit property with respect to the taxpayer, before the close of the

recapture period, then the tax imposed for the taxable year shall be increased by the recapture percentage of the aggregate

decrease in the credits allowed for all prior taxable years which would have resulted solely from reducing to zero any credit

determined with respect to such property. The recapture percentage is 100% if the property ceases to be investment credit

property within one full year after placed in service; 80% if the property ceases to be investment credit property within two full

years after placed in service; 60% if the property ceases to be investment credit property within three full years after placed

in service; 40% if the property ceases to be investment credit property within four full years after placed in service; and 20%

if the property ceases to be investment credit property within ﬁ ve full years after placed in service. For more information, you

may visit the Maine Historic Preservation Commission web page at or call (207) 287-2132.

“Certiﬁ ed historic structure” is deﬁ ned by the IRC as any building (and its structural components) which is listed in the

National Register or is located in a registered historic district. Currently, qualiﬁ ed expenditures made with respect to certiﬁ ed

historic structures qualify for the 20% federal credit amount.

Under current federal law, “qualiﬁ ed rehabilitation expenditures” must meet all of the following: The expenditures must

be for nonresidential rental property, residential rental property, real property which has a class life of more than 12.5 years

or an addition or improvement to nonresidential real property, residential rental property, or real property which has a class

life of more than 12.5 years. The expenditures must be capitalized and depreciated using the straight line method. The

expenditures cannot include the costs of acquiring or enlarging any building.

SPECIFIC LINE INSTRUCTIONS

Please enter the taxpayer name and social security number (“SSN”) or employer identiﬁ cation number (“EIN”).

In the case of pass-through entities (partnerships, LLCs, S corporations, trusts, etc.), the partners, members, shareholders,

beneﬁ ciaries, etc., are allowed a credit in proportion to their respective interest in these entities. Attach a schedule showing

the credit generated by the pass-through entity and the assignment/distribution to each partner, shareholder, beneﬁ ciary,

etc. Include the name, address, and federal ID number of the pass-through entity and the name and SSN/EIN of each

partner, shareholder, beneﬁ ciary, etc.

Line 1. Enter the amount from

federal Form 3468, line 1c or federal Form 3800, line 1a that relates to certiﬁ ed historic

structures located in Maine.

Line 2. Enter the amount from federal Form 3468, line 1e or federal Form 3800, line 6 that relates to certiﬁ ed historic

structures located in Maine.

Line 4. Enter the total year credit amount from federal Form 3800, line 8. If the total is the same amount as on line 3, skip

to line 6.

Line 5. To determine the percentage of the total year credit that relates to certiﬁ ed historic structures in Maine, divide the

amount on line 3 by the amount on line 4. Enter the result here.

Line 6. Enter the total current credit allowed from federal Form 3800, line 19. If you skipped line 5, then skip to line 9.

Line 7. To determine the portion of the total current credit allowed that relates to certiﬁ ed historic structures located in

Maine, multiply the amount on line 6 by the percent on line 5. Enter the result here.

Line 8. Credit limitation of $100,000.

Line 9. Enter the lesser of line 7 or line 8. If you skipped lines 5 and 7, enter the lesser of line 3 or line 8. The credit is limited

to the tax liability of the taxpayer. For taxable corporations, this limitation is applied on Form 1120ME, Schedule C.

For individuals, the limitation is applied on Form 1040ME, Schedule A. Any unused credit amounts resulting from

this limitation may not be carried forward or carried back to other tax years.

Rev. 11/07

Rehabilitation Of Historic Properties Tax Credit Worksheet 2007 Page 2

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