An Act To Strengthen Maine's Craft Brewers
Maine Legislature, Session 122, LD 2048
Committee Amendment CA_A_S588 (Senate)
Amends: 36 MRSA §6753, 36 MRSA §6754, 36 MRSA §6755, 36 MRSA §6758, 36 MRSA §6760, 36 MRSA §6761, 36 MRSA §6762

COMMITTEE AMENDMENT 'A" to S.P. 792, L.D. 2048, Bill, "An Act To 
Strengthen Maine's Craft Brewers" 
Amend the bill in section 1 in §1653 by striking out all of subsections 2 to 4 and 
inserting in their place the following: 
'2. Amount of credit; schedule. A brewer eligible under subsection I is entitled to 
a credit in the amount of 17.5¢ per gallon of malt liquor manufactured in this State and 
exported for sale outside this State, calculated annually for each year the credit is claimed 
according to the procedure in subsection 3: 
A. 
For the fiscal year 2006-07, on 90% of the total amount manufactured and 
exported in that year; 
B. 
For the fiscal year 2007-08, on 80% of the total amount manufactured and 
exported in that year, plus an additional credit of 17.5¢ per gallon on the amount in 
excess of 110% of the amount manufactured and exported in the previous year of 
participation; 
C. 
For the fiscal ye,ar 2008-09, on 70% of the total amount manufactured and 
exported in that year, plus an additional credit of 17.5¢ per gallon on the amount in 
excess of 110% of the amount manufactured and exported in the previous year of 
participation; 
D. 
For the fiscal year 2009-10, on 60% of the total amount manufactured and 
exported in that year, plus an additional credit of 17.5¢ per gallon on the amount in 
excess of 110% of the amount manufactured and exported in the previous year of 
participation; 
E. 
For the fiscal year 2010-11, on 50% of the total amount manufactured and 
exported in that year, plus an additional credit of 17.5¢ per gallon on the amount in 
excess of llO% of the amount manufactured and exported in the previous year of 
participation; 
F. 
For the fiscal year 2011-12, on 40% of the total amount manufactured and 
exported in that year, plus an additional credit of 17.5¢ per gallon on the amount in 
COMMITTEE AMENDMENT 
"'~~ 
COMMITTEE AMENDMENT ,~" to S.P. 792, L.D. 2048 
excess of 110% of the amount manufactured and exported in the previous year of 
participation; 
G. 
For the fiscal year 2012-13, on 30% of the total amount manufactured and 
exported in that year, plus an additional credit of 17.5¢ per gallon on the amount in 
excess of 110% of the amount manufactured and exported in the previous year of 
participation; 
H. 
For the fiscal year 2013-14, on 20% of the total amount manufactured and 
exported in that year, plus an additional credit of 17.5¢ per gallon on the amount in 
excess of 110% of the amount manufactured and exported in the previous year of 
participation; 
I. For the fiscal year 2014-15, on 10% of the total amount manufactured and 
exported in that year, plus an additional credit of 17.5¢ per gallon on the amount in 
excess of 110% of the amount manufactured and exported in the previous year of 
participation; and 
J. For the fiscal year 2015-16, on the amount in excess of 110% of the amount 
manufactured and exported in the previous year of participation. 
The credit available to a brewer under this subsection may not exceed 50% of the amount 
of excise taxes otherwise due from the brewer under section 1652. 
3. 
Procedure for claiming credit. The credit calculated under subsection 2 on the 
initial threshold percentage of sales for the applicable year may be claimed on the 
brewer's monthly return under section 1652, subsection 2-A. The credit on amounts in 
excess of 110% of the amount manufactured and exported in the applicable year may be 
claimed on the return filed under section 1652, subsection 2-A for the last month of the 
applicable year. 
4. Rules; forms. The bureau shall adopt rules necessary for the implementation of 
this section, including forms to be made available to brewers. Rules adopted pursuant to 
this subsection are routine technical rules pursuant to Title 5, chapter 375, subchapter 2-
A. 
5. 
Repeal. This section is repealed March 1, 2010 unless the Commissioner of 
Economic and Community Development certifies to the Legislature under Title 36, 
section 6762 that the total number of new qualified employees of qualified brewers 
statewide for which reimbursement was made under chapter 917 for calendar year 2009 
exceeds the number of full-time equivalent employees of qualified brewers statewide for 
calendar year 2006 by 10%.' 
Further amend the bill by striking out all of section 2 and inserting in its place the 
following: 
'Sec. 2. 36 MRSA §6753, sub-§3, as enacted by PL 1995, c. 669, §5, is amended 
to read: 
3. Applicant. "Applicant" means a qualified business or a qualified brewer that has 
submitted an application to the commissioner for approval of an employment tax 
increment financing development program. 
COMMITTEE AMENDMENT 
..,~'ir 
COMMITTEE AMENDMENT ,~t to S.P. 792, L.D. 2048 
Sec. 3. 36 MRSA §6753, sub-§7, as amended by PL 2005, c. 351, §22 and 
affected by §26, is further amended to read: 
7. 
Employment tax increment. "Employment tax increment" means that level of 
employment, payroll and state income withholding taxes attributed to qualified 
employees employed by a qualified business or qualified brewer above the base level for 
the qualified business or qualified brewer, adjusted pursuant to subsection 12 for shifts in 
employment by affiliated businesses. 
Sec. 4. 36 MRSA §6753, sub-§9, as enacted by PL 1995, c. 669, §5, is amended 
to read: 
9. 
Gross employment tax increment. "Gross employment tax increment" means 
that level of employment, payroll and State state income tax withholding taxes attributed 
to qualified employees employed by a qualified business or qualified brewer that is 
greater than the base level for the qualified business or qualified brewer. 
Sec. 5. 36 MRSA §6753, sub-§10-A is enacted to read: 
10-A. Qualified brewer. "Qualified brewer" means a for-profit business in this 
State that produces malt liquor for resale and that adds one or more qualified employees 
above its base level of employment in this State. 
Sec. 6. 36 MRSA §6753, sub-§12, as amended by PL 2005,. c. 351, §23 and 
affected by §26, is further amended to read: 
12. 
Qualified employees. "Qualified employees" means new, full-time employees 
hired in this State by a qualified business or qualified brewer and for whom a retirement 
program subject to the Employee Retirement Income Security Act of 1974, 29 United 
States Code, Sections 101 to 1461, as amended, and group health insurance are provided, 
and whose income derived from employment with the applicant, calculated on a calendar 
year basis, is greater than the most recent annual per capita personal incom~ in the county 
in which the qualified employee is employed and whose state income withholding taxes 
are subject to reimbursement to the qualified business or qualified brewer under this 
chapter. "Qualified employees" does not include employees shifted to a qualified business 
or qualified brewer from an affiliated business. 
The commissioner shall determine 
whether a shifting of employees has occurred. 
Sec. 7. 36 MRSA §6754, as amended by PL 2003, c. 688, Pt. D, §6, is further 
amended to read: 
§6754. Reimbursement allowed 
1. 
Generally. Subject to the provisions of subsection 2, a qualified business or 
qualified brewer is entitled to reimbursement of state income withholding taxes withheld 
during the calendar year for which reimbursement is requested and attributed to qualified 
employees after July 1, 1996 in the following amounts. 
A. 
For qualified employees employed by a qualified business in state labor market 
areas in which the labor market unemployment rate is at or below the state 
unemployment rate at the time of application, the reimbursement is equal to 30% of 
withholding taxes withheld during each of the first 5 calendar years for which 
reimbursement is requested and attributed to those qualified employees. 
The 
COMMITTEE AMENDMENT 
~o.ro. 
COMMITTEE AMENDMENT ~" to S.P. 792, L.D. 2048 
percentage of reimbursement for the 6th to 10th years of the employment tax 
increment financing development program is established based upon the labor market 
unemployment rate at the beginning of the 6th year. 
B. 
For qualified employees employed by a qualified business in state labor market 
areas in which the labor market unemployment rate is greater than the state 
unemployment rate at the time of application, the reimbursement is equal to 50% of 
withholding taxes withheld during each of the first 5 calendar years for which 
reimbursement is requested and attributed to those qualified employees. 
The 
percentage of reimbursement for the 6th to 10th years of the employment tax 
increment financing development program is established based upon the labor market 
unemployment rate at the beginning of the 6th year. 
C. 
For qualified employees employed by a qualified business in state labor market 
areas in which the labor market unemployment rate is greater than 150% of the state 
unemployment rate at the time of application, the reimbursement is equal to 75% of 
withholding taxes withheld during each of the first 5 calendar years for which 
reimbursement is requested and attributed to those qualified employees. 
The 
percentage of reimbursement for the 6th to 10th years of the employment tax 
increment financing development program is established based upon the labor market 
unemployment rate at the beginning of the 6th year. 
D. 
For qualified Pine Tree Development Zone employees, as defined in Title 30-A, 
section 5250-1, subsection 18, employed directly in the qualified business activity of 
a qualified Pine Tree Development Zone business, as defined in Title 30-A, section 
5250-1, subsection 17, for whom a certificate of qualification has been issued in 
accordance with Title 30-A, section 5250-0, the reimbursement under this subsection 
is equal to 80% of the withholding taxes withheld each year for which reimbursement 
is requested and attributed to those qualified employees for a period of no more than 
years. In no event may reimbursement under this subsection be paid for years 
beginning after December 31, 2018. 
E. For qualified employees hired by a qualified brewer, the reimbursement is equal 
to 50% of withholding taxes withheld during each of the 10 tax years for which 
reimbursement is requested and attributed to those qualified employees. In no event 
may reimbursement under this subsection be paid for years beginning after December 
31, 2016. 
2. 
Limitations. Reimbursement to a qualified business or qualified brewer under 
this chapter is subject to the following limitations. 
A. 
A business previously qualified and approved by the commissioner may not 
receive reimbursement under this chapter for any period of time in which it failed to 
maintain the minimum requirements for initial approval as a qualified business or 
qualified brewer. 
B. 
Reimbursement to a qualified business approved pursuant to this chapter expires 
years after the date on which benefits commenced under the employment tax 
increment financing development program. 
COMMITTEE AMENDMENT 
~6t,. 
COMMITTEE AMENDMENT ,A" to S.P. 792, L.D. 2048 
C. 
A business electing to take the jobs and investment tax credit under section 5215 
may not claim reimbursement under this chapter until the full amount of allowable 
jobs and investment tax credit benefits have been claimed. 
D. 
A business may not claim reimbursement under this chapter for income 
withholding taxes attributed to employees employed within any state tax increment 
financing district approved under Title 30-A, chapter 206. 
E. 
Employee payroll withholding amounts are limited to the standard amount 
required to be withheld pursuant to chapter 827 and may not include any excess 
withholding. 
F. 
The aggregate annual retained employment tax increment revenues for all 
employment tax increment financing programs may not exceed $20,000,000, adjusted 
by a factor equal to the percentage change in the United States Bureau of Labor 
Statistics Consumer Price Index, United States City Average, from January 1, 1996 to 
the date of calculation. 
3. 
Multiple labor market areas. The commissioner may by rule establish 
procedures for equitably apportioning reimbursement to a qualified business or a 
qualified brewer employing qualified employees in multiple labor market areas in the 
State. 
Sec. 8. 36 MRSA §6755, first" as enacted by PL 1995, c. 669, §5, is amended 
to read: 
A qualified business or qualified brewer that applies to the commissioner for 
approval of its employment tax increment financing program shall submit, in a form 
acceptable to the commissioner, the following information: 
Sec. 9. 36 MRSA §6758, as amended by PL 2005, c. 351, §25 and affected by 
§26, is further amended to read: 
§6758. Procedure for reimbursement 
1. 
Reporting by qualified businesses and qualified brewers. On or before April 
15th of each year, each qualified business and each qualified brewer approved by the 
commissioner pursuant to this chapter shall report the number of employees, the state 
income taxes withheld for the immediately preceding calendar year and any further 
information the State Tax Assessor may reasonably require. 
2. 
Determination by assessor. On or before June 30th of each year, the assessor 
shall determine the employment tax increment of each qualified business and qualified 
brewer for the preceding calendar year. A qualified business or qualified brewer may 
receive up to 80% of the employment tax increment generated by that business as 
determined by the assessor, subject to the further limitations in section 6754, subsection 
2. That amount is referred to as "retained employment tax increment revenues." 
3. 
Deposit and payment of revenue. On or before June 30th of each year, the 
Commissioner of Administrative and Financial Services shall deposit an amount equal to 
the total retained employment tax increment revenues for the preceding calendar year for 
approved employment tax increment financing programs in the state employment tax 
increment contingent account established, maintained and administered by the 
Commissioner of Administrative and Financial Services. On or before July 31st of each 
COMMITTEE AMENDMENT 
~.~ 
COMMITTEE AMENDMENT ,A" to S.P. 792, L.D. 2048 
year, the Commissioner of Administrative and Financial Services shall pay to each 
approved qualified business and approved qualified brewer an amount equal to the 
retained employment tax increment revenues for the preceding calendar year. 
Sec. 10. 36 MRSA §6760, sub-§2, ,A, as enacted by PL 1995, c. 669, §5 is 
amended to read: 
A. 
A person, which may include a qualified business or qualified brewer, to whom 
the record belongs or pertains has requested be designated confidential; or 
Sec. 11. 36 MRSA §6761, as enacted by PL 1995, c. 669, §5, is amended to read: 
§6761. Audit process 
This chapter may not be construed to limit the authority of the State Tax Assessor to 
conduct an audit of a qualified business or qualified brewer. When it is determined by 
the State Tax Assessor upon audit that a qualified business or qualified brewer has 
received a distribution larger than that to which it is entitled under this chapter, the 
overpayment must be applied against subsequent distributions, unless it is determined that 
the overpayment is the result of fraud on the part of the qualified business or qualified 
brewer, in which case the State Tax Assessor may disqualify the business from receiving 
any future distributions. When there is no subsequent distribution, the qualified business 
or qualified brewer to which overpayments were made is liable for the amount of the 
overpayments and may be assessed pursuant to provisions of Part 1. 
Sec. 12. 36 MRSA §6762 is enacted to read: 
§6762. Repeal of reimbursement of qualified brewers 
Unless the commissioner certifies to the Legislature by March 1, 2010 that the total 
number of new qualified employees of qualified brewers statewide for which 
reimbursement was made under this chapter for calendar year 2009 exceeds the number 
of full-time equivalent employees of qualified brewers statewide for calendar year 2006 
by 10%, a qualified brewer may not claim reimbursement as a qualified brewer under this 
chapter for income tax withholding periods beginning on or after March 1,2010. 
Sec. 13. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Maine Revenue Services 0002 
Initiative: Provides one-time funds for the computer programming costs associated with 
the tax credit for certain malt liquor manufacturers. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2005-06 
$0 
$0 
COMMITTEE AMENDMENT 
2006-07 
$30,000 
$30,000 
COMMITTEE AMENDMENT ,A" to S.P. 792, L.D. 2048 
SUMMARY 
This amendment makes changes to the provisions of the bill relating to the malt 
liquor excise tax credit to apply the credit based on the fiscal year rather than on the year 
of production. The amendment also replaces the income tax credit with an expansion of 
the employment tax increment financing program to provide an enhanced reimbursement 
for qualified brewers who add qualified employees. The amendment also provides that 
the excise tax credit and enhanced employment tax increment financing reimbursement 
are repealed March 1, 2010 unless the Commissioner of Economic and Community 
Development certifies that the number of new employees of qualified brewers for which 
reimbursement was made in 2009 has increased at least 10% over total 2006 employment. 
This amendment also adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See Attached) 
COMMITTEE AMENDMENT 
Approved: 04/06/06 frac::. 
LD 2048 
LR3133(02) 
An Act To Strengthen Maine's Craft Brewers 
Fiscal Note for Bill as Amended by Committee Amendment ,A" 
Committee: Taxation 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Revenue 
General Fund 
Other Special Revenue 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
2005-06 
$0 
$0 
$0 
$0 
2006-07 
$188,859 
$30,000 
($158,859) 
($2,001) 
Projections 
2007-08 
$171,931 
$0 
($171,931) 
($2,317) 
Projections· 
2008-09 
$172,641 
$0 
($172,641) 
($2,623) 
The establishment ofa tax credit against certain alcohol excise taxes will result in the loss ofan estimated $121,630 in 
budgeted General Fund revenue to be collected by the Department of Public Safety in fiscal year 2006-07. In addition 
the bill will reduce income tax by an estimated $39,230 in fiscal year 2006-07, resulting in an additional General Fund 
revenue loss of$37,229. This bill includes a one-time General Fund appropriation of $30,000 for Maine Revenue 
Services' computer programming costs.