June 27, 2008 3:52PM

Tax Credits We Don’t Need, Tax Credits We Do … Maine #1

Yesterday I posted the first in a continuing series about tax credits we don’t need to illustrate how absurd it is that more politicians don’t support the one good kind of tax credit; education tax credits.

I noted that one of the more popular tax credits is for saving old buildings that some people don’t want torn down but don’t care enough about to save with their own money. So they subsidize the renovation with credits. Maine’s government likes their old buildings just as much as Ohio’s, so the legislature recently expanded the state building rehab credit:

A new law that makes up to $5 million available to developers willing to rehabilitate historic buildings in Maine drew a record crowd Tuesday, a bellwether of its potential to spur new life in old buildings, organizers said.

With an estimated 25 projects that could take advantage of the expanded credit, Maine is looking at somewhere around $100 million in credits for building rehab.

What most states don’t have are education tax credits – the one and only tax credit that makes fiscal sense because it really does save taxpayers’ money and the only tax credit that actually decreases market distortion rather than increasing it.

So, I have a question for Maine’s politicians; if it’s good to encourage developers to invest in building preservation, why isn’t it good to encourage all taxpayers to invest in education? Are developers and old buildings more important than a child’s future?

Will Representative Ted Koffman, Speaker Glenn Cummings, Senator Peggy Rotundo, and Governor John Baldacci, all of whom pushed hard for the building credit, come out in support of at least $100 million in tax credits for educating Maine’s children?

If not why not? Inquiring minds want to know …