An Act To A ward Income Tax Credits for Boiler or Furnace Systems That Reduce or Eliminate Certain Pollutants (AFTER DEADLINE)
Maine Legislature, Session 122, LD 1647
Committee: Taxation
Sponsors: DUDLEY, PERRY, BOWLES, CLOUGH, HUTTON, KOFFMAN, RICHARDSON, WATSON, EDMONDS, MILLS
Amends: 36 MRSA §5202-D

Legislative Document 
No. 1647 
H.P.1159 
House of Representatives, May 5,2005 
An Act To A ward Income Tax Credits for Boiler or Furnace 
Systems That Reduce or Eliminate Certain Pollutants 
(AFTER DEADLINE) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205. 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative DUDLEY of Portland. 
Cosponsored by Senator PERRY of Penobscot and 
1J1~1I1·771~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: BOWLES of Sanford, CLOUGH of Scarborough, HUTTON of Bowdoinham, 
KOFFMAN of Bar Harbor, Speaker RICHARDSON of Brunswick, WATSON of Bath, 
Senators: President EDMONDS of Cumberland, MILLS of Somerset. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec.t. 36 MRSA §5202-D is enacted to read: 
§5202-D. 
Tax credit for pollution-reducing boilers 
1. 
Definitions. 
As 
used 
in this 
section, 
unless 
the 
context 
otherwise 
indicates, 
the 
following 
terms 
have 
the 
following meanings. 
A. 
"Organic material" means material that produces energy 
when burned, including organic waste, municipal sludge or 
sewage and oceanic or terrestrial crops. 
B. 
"Pollution-reducing boiler or furnace system" means a 
boiler or furnace system placed into operation on or after 
January 1, 2006 that, without increasing the total output of 
nitrogen-oxygen compounds, burns organic material while: 
(1) 
Eliminating the amount of emissions of oxides of 
nitrogen that would have resulted from using air; or 
(2) 
Reducing 
p~culates emissions by at least 20% 
below 
standards 
established 
by 
the 
Department 
of 
Environmental 
Protection, 
Board 
of 
Environmental 
Protection. 
2. 
'raJ[ credit: transferability. 
A business 
that~~ 
pollution-reducing boiler or furnace system on the site of its 
business is entitled to a credit against taxes due under this 
chapter. 
The amount of the tax credit is equal to 1. 5¢ per 
kilowatt hour or its equivalent in heat energy produced by the 
pollution-reducing boiler or furnace system, but in no case may 
the credit exceed the 
amount 
of 
tax 
owed pursuant to this 
chapter. 
Tax 
credits 
earned 
pursuant 
to 
this 
chapter 
are 
transferable and may be carried over from one tax year to the 
~ 
3. 
Other boilers or furnace systems. 
A business that 
modifies a boiler or furnace system placed into operation prior 
to January 1, 2006 may qualify for the tax credit pursuant to 
subsection 2 if the existing boiler or furnace system is used in 
conjunction with technology that; 
A. 
Reduces nitroge.1L.Q..~~Jie.$~bout increasing or decreasing 
the total output of nitrogen-oxide compounds; or 
B. 
Reduces particulates emissions by at least 20% below 
standards established by the Department of Environmental 
Protection, Board of Environmental Protection. 
Page l-LR2246(l) 
'Ihe amount of the tax credit is limited to the kilowatt-hours or 
its equivalent 
in heat 
energy 
produced attributable 
to 
the 
technology used in the boiler or furnace system. 
Sec. 
2. 
Standards. 
The 
Department 
of 
Environmental 
Protection, Board of Environmental Protection shall adopt rules 
and standards for particulate emissions from boilers and furnace 
systems. 
Rules adopted pursuant to this section are routine 
technical rules as defined in the Maine Revised Statutes, Title 
5, chapter 375, subchapter 2-A. 
Sec. 3. Application. 
That section of this Act that enacts the 
Maine 
Revised Statutes, Title 36, 
section 5202-0 applies to 
income tax years beginning on or after January 1, 2005. 
SUMMARY 
This bill provides a credit against corporate income taxes 
to businesses that put into operation on or after June 1, 2005 a 
furnace 
or 
boiler 
system 
that 
burns 
organic 
material 
and 
eliminates nitrogen oxides without increasing other pollutants or 
reduces particulate emissions 
to 
a 
level that is 
20% 
below 
standards 
established 
by 
the 
Department 
of 
Environmental 
Protection, 
Board of Environmental Protection. 
The credit is 
equal to 1.5¢ per kilowatt-hour or its equivalent in heat energy 
produced by the furnace or boiler system. 
A business with an 
existing boiler or furnace system placed into operation prior to 
June 1, 2005 may qualify for the tax credit if it modifies its 
boiler or furnace system to burn more cleanly, but only to the 
extent 
of 
the 
kilowatt-hours 
or 
equivalent 
heat 
energy 
attributable to the modification.