An Act To Promote the Production and Use of Fuels Derived from Agricultural and Forest Products LR 1861(02)
Maine Legislature, Session 121, LD 1492
Committee Amendment CA_A_H641 (House)
Amends: 36 MRSA §5219-X

COMMITTEE AMENDMENT "/}" to H.P. 1089, L.D. 1492, Bill, "An 
Act To 
Promote the Production and Use of Fuels Derived from 
Agricultural and Forest Products" 
Amend the bill by striking out everything after the enacting 
clause and before the summary and inserting in its place the 
following: 
'Sec. 1. 36 MRSA §5219-X is enacted to read: 
§5219 x. 
Biofue1 production and use 
1. 
Definition. 
As used in this section, unless the context 
otherwise indicates, 
the term "biofuel" means 
any liguid or 
gaseous product or energy source used to propel motor vehicles or 
otherwise substitute for liguid or gaseous fuels that is derived 
from agricultural crops or residues or from forest products or 
byproducts, 
as distinct from petroleum or other fossil carbon 
sources. 
"Biofuel" includes, but is not limited to, ethanoL 
methanol 
derived 
from 
biomass, 
levulinic 
acid, 
biodiesel, 
pyrolysis oils from wood, hydrogen or methane from biomass, or 
combinations of any of the above that may be used to propel motor 
vehicles either alone or in blends with conventional gasoline or 
diesel fuels or that may be used in place of petroleum products 
in whole or in part to fire heating devices or any stationary 
power device. 
2. 
Credit allowed. 
A taxpayer engaged in the production of 
biofuels 
in the 
State 
who 
has 
received certification under 
subsection 4 is allowed a credit against the tax imposed by this 
Part 
on 
income 
derived 
during 
the 
taxable 
year 
from 
the 
Page l-LR1861(2) 
COMMITTEE AMENDMENT 
IJ~' 
~;Y 
COMMITTEE AMENDMENT .# .. to H.P. 1089, L.D. 1492 
production of biofuel in the amount of 5¢ per gallon of liguid 
biofuel or gaseous biofuel with a BTU eguivalent to that of one 
gallon of gasoline that replaces the use of petroleum or liguid 
fuels derived from other fossil carbon sources. 
In blends with 
petroleum or other nonbiofuels, the credit is allowed only on the 
portion of that blend that the biofuel constitutes. 
Biofuel for 
which 
the 
credit 
is 
allowed 
must 
meet 
state 
and 
federal 
regulatory reguirements applicable to the nature and intended use 
of the fuel produced. 
3. 
Limitations. 
A person entitled to a credit under this 
section for any taxable year may carryover and apply the portion 
of any unused credits to the tax liability on income derived from 
the production of biofuel for anyone or more of the next 
succeeding 
taxable 
years. 
The 
credit 
allowed, 
including 
carryovers, may not reduce the tax otherwise due under this Part 
to less than zero. 
4. 
Certification. 
A taxpayer engaged in the production of 
biofuels who 
is claiming 
a 
credit under 
subsection 
shall 
provide 
information 
to 
the 
Commissioner 
of 
Environmental 
Protection regarding the biofuel being produced, including the 
quantity of biofuel products, the type of forest or agricultural 
product being utilized, the nature and composition of the biofuel 
being produced, the proportion and composition of any nOnbiofuel 
with which the biofuel is blended and the type of application for 
which it is intended to be used. 
Upon review of the information, 
the Commissioner of Environmental Protection shall provide the 
taxpayer with a letter of certification stating that the biofuel 
produced during the taxable year is eligible for a tax credit 
under this section and stating the number of gallons of biofuel 
produced during the taxable year. 
5. 
Application. 
This 
section 
applies 
to 
tax 
years 
beginning on or after January 1, 2004. 
Sec. 
2. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
The 
ADMINISTRATIVE AND FIRARCIAL SERVICES, DEPARTMENT OF 
Maine Revenue Services 
following 
Ini tiati ve: 
Provides funds to support the computer programming 
costs 
associated with establishing 
an 
income 
tax credit on 
biofuel. 
General Fund 
All Other 
2003-04 
$0 
2004-05 
$12,000 
COMMITTEE AMENDMENT 
Il 
COMMITTEE AMENDMENT "ft to H.P. 1089, L.D. 1492 
General Fund Total 
$0 
$12,000' 
SUMMARY 
This 
amendment 
expands 
the 
definition 
of 
"biofuel" 
to 
include gaseous fuels such as hydrogen and methane. 
It clarifies 
that the income tax credit applies only to tax attributable to 
income 
derived 
from 
the 
production 
of 
biofuel 
and 
adds 
a 
requirement that the biofuel meet state and federal regulatory 
requirements. 
The amendment also clarifies the requirements for 
documenting eligibility for the credit and adds an appropriations 
and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 01116/04 ;tp,czc:.. 
Office of Fiscal and Program Review 
LD 1492 
An Act To Promote the Production and Use of Fuels Derived from 
Agricultural and Forest Products 
LR 1861(02) 
Fiscal Note for Bill as Amended by Committee Amendment" " 
Committee: Taxation 
Fiscal Note Required: Yes 
. Fiscal Note 
Projections 
Projections 
2003-04 
2004-05 
2005-06 
2006-07 
Net Cost (Savings). 
General Fund 
$0 
$12,000 
$0 
Appropriations! Allocations 
General Fund 
$0 
$12,000 
$0 
Fiscal Detail and Notes 
Maine Revenue Services will require a one-time General Fund appropriation of $12,000 in fiscal year 2004-05 to 
support the computer programming costs associated with this income tax credit. The provisions of this bill are not 
expected to have any measurable impact on income tax collections. 
$0 
$0