An Act to Award Income Tax Credits for Boiler or Furnace Systems That Reduce or Eliminate Certain Pollutants
Maine Legislature, Session 122, LD 1647
Committee Amendment CA_A_H628 (House)
Amends: 5 MRSA §13070-J, 36 MRSA §5219-Y

COMMITTEE AMENDMENT "A'to H. P. ll59 , L . D . 
Act To Award Income Tax Credits for Boiler or 
That Reduce or Eliminate Certain Pollutants" 
1647, Bill, " An 
Furnace Sys terns 
Amend the bill by striking out everything after the enacting 
clause and before the summary and inserting in its place the 
following: 
I Sec. 1. 5 MRSA §13070-J, sub-§I, 1fD, as corrected by RR 2001, 
c. 2, Pt. A, §ll, is amended to read: 
D. 
"Economic development incentive" means: 
(1) 
Assistance from Maine Quality Centers under Title 
20-A, chapter 431-A; 
(2) 
The Governor I sTraining Ini tiati ve Program under 
Title 26, chapter 25, subchapter 4; 
(3) 
Municipal 
tax 
increment 
financing 
under Title 
3D-A, chapter 206; 
(4) 
The jobs and investment tax credit under Title 36, 
section 5215; 
( 5) 
The research expense tax credit under Title 36, 
section 5219-K; 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 1159, L.D. 1647 
(6) 
Reimbursement for taxes paid on certain business 
property under Title 36, chapter 915; 
(7) 
Employment tax increment financing under Title 36, 
chapter 917; 
(8) 
The shipbuilding facility credit under Title 36, 
chapter 919; at 
(9) 
The credit for seed capital investment under Title 
36, section 52l6-BTL-Q£ 
(0) 
The credit for pollution-reducing boilers under 
Title 36, section 5219-Y. 
Sec. 2. 36 MRSA §5219-Y is enacted to read: 
§52l9-Y. 
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. 
"Department" 
means 
the 
Department 
of 
Environmental 
Protection. 
B. 
"Organic material" means material that produces energy 
when burned, including organic waste, municipal sludge and 
sewage and oceanic and terrestrial crops. 
C. 
"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 for 
combustion; and 
(2) 
Meeting standards established by the department. 
2. 
Tax credit: transferability. 
A business that uses a 
pollution-reducing boiler or furnace system on the site of its 
business, certified by the department, is entitled to a credit 
against taxes due under this Part. 
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 Part. 
The 
department 
shall 
annually 
COMMITTEE AMENDMENT 
tJ.~. 
". 
COMMITTEE AMENDMENT .. A 
.. to H.P. 1159, L.D. 1647 
certify the number of kilowatt-hours or its equivalent in heat 
energy 
produced 
by 
a 
certified pollution-reducing boiler 
or 
furnace system. 
Tax credits earned pursuant to this section may 
be carried over from one tax year to the next. 
3. 
Other 
boiler 
or 
furnace 
system. 
A business 
that 
modifies a boiler or furnace system placed into operation prior 
to January L 
2006 may qualify for the tax credit pursuant to 
subsection 
if 
the 
existing boiler 
or 
furnace 
system 
is 
certified 
by 
the 
department 
as 
used 
in 
conjunction 
with 
technology that: 
A. 
Eliminates the amount of emissions of oxides of nitrogen 
that would have resulted from using air for combustion; and 
B. 
Meets standards established by the department. 
The amount of the tax credit is limited to the kilowatt-hours or 
equivalent in heat energy produced certified by the department as 
attributable to the technology used in the boiler or furnace 
system. 
4. 
Repeal. 
This section is repealed December 31, 2009. 
Sec. 3. Application. 
That section of this Act that enacts the 
Maine 
Revised Statutes, Title 36, 
section 52l9-Y applies to 
income tax years beginning on or after January 1, 2005 but before 
January 1, 2010. 
Sec. 
4. 
Appropriations 
and 
allocations. 
The 
following 
appropriations and allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Maine Revenue Services 
0002 
Initiative: 
Provides funds for the computer programming costs 
associated with the income tax for pollution-reducing boilers. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
SUMMARY 
2005-06 
$10,000 
$10,000 
2006-01 
$0 
$0' 
This amendment extends the income tax credit proposed in the 
bill for pollution-reducing boilers to businesses that are not 
corporations, eliminates the transferability of credits, requires 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ,A" to H.P. 1159, L.D. 1647 
certifications 
of 
eligible 
systems 
by 
the 
Department 
of 
Environmental Protection, clarifies the application of the credit 
and 
repeals 
the credit after 
years. 
The 
amendment 
also 
requires the Department of Administrative and Financial Services, 
Bureau of Revenue Services to report annually on the use of the 
credit as part of its economic development incentive report. 
This 
amendment 
also 
adds 
an 
appropriations 
and 
allocations 
section to the bill. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 06/01105 frac:.. 
LD 1647 
LR2246(02) 
An Act to Award Income Tax Credits for Boiler or Furnace Systems That Reduce or Eliminate 
Certain Pollutants 
Fiscal Note for Bill as Amended by Committee Amendment "A, 
Committee: Taxation 
Net Cost (Savings) 
General Fund 
<\ppropriations/ Allocations 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
2005-06 
$14,038 
$10,000 
($4,038) 
($217) 
2006-07 
$28,263 
$0 
($28,263) 
($1,519) 
Projections 
2007-08 
$70,180 
$0 
($70,180) 
($3,850) 
Projections 
2008-09 
$118,579 
$0 
($118,579) 
($6,504) 
This income tax credit is expected to reduce General Fund revenue by $4,038 in fiscal year 2005-06 and $28,263 in 
fiscal year 2006-07. This bill also includes a one-time General Fund appropriation of $10,000 in fiscal year 2005-06 
for Maine Revenue Services for the computer programming costs associated with the tax credit. The additional costs 
associated with certifying eligible systems and other requirements will be absorbed by the Department of 
Environmental Protection utilizing existing budgeted resources. 
LR2246(2) - Fiscal Note - Page 1 of 1