An Act To Create the Maine Fishery Infrastructure Tax Credit Program
Maine Legislature, Session 123, LD 0358
Committee: Taxation
Sponsors: WATSON, BRYANT, JACKSON, PIOTTI, WHEELER
Amends: 36 MRSA §5216-D

Legislative Document 
No. 358 
H.P.288 
House of Representatives, January 25, 2007 
An Act To Create the Maine Fishery Infrastructure Tax Credit 
Program 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative WATSON of Bath. 
Cosponsored by Senator BRYANT of Oxford and 
11J~1I7.~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: JACKSON of Allagash, PIOTTI of Unity, WHEELER of Kittery. 
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Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRS A §13070-J, sub-§l, ,0, as amended by IlL 2005, c. 519, Pt. 
TTT, § 1, is further amended to read: 
D. 
"Economic development incentive" means: 
(1) Assistance from Maine Quality Centers under Title 20-A, chapter 431-A; 
(2) The Governor's Training Initiative Program under Title 26, chapter 25, 
subchapter 4; 
(3) Municipal tax increment financing under Title 30-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; 
(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; 
(9) The credit for seed capital investment under Title 36, section 5216-B;-er 
(10) The credit for pollution-reducing boilers under Title 36, section 5219-Z:"; or 
(11) The credit for Maine fishery infrastructure investment under Title 36, 
section 5216-D. 
Sec. 2. 12 MRS A c. 903, sub-c. 8 is enacted to read: 
SUBCHAPTER 8 
MAINE FISHERY INFRASTRUCTURE TAX CREDIT PROGRAM 
§10331. Tax credit certificates 
1. 
Authorization. 
In order to encourage equity investment in infrastructure 
improvements and facilities that enhance the State's fisheries, the department is 
authorized to issue certificates of eligibility for the Maine fishery infrastructure 
investment tax credit permitted by Title 36, section 5216-D, subject to the requirements 
of this section. This program is known as the Maine Fishery Infrastructure Tax Credit 
Program. 
2. Eligibility for tax credit certificate; rules. The department shall adopt rules in 
accordance with the Maine Administrative Procedure Act to implement the program 
under this subchapter. Rules adopted pursuant to this subsection are routine technical 
rules as defined by Title 5, chapter 375, subchapter 2-A. The rules must establish 
requirements for project eligibility for a tax credit certificate and must include at least the 
following. 
A. A tax credit certificate may be issued in an amount not more than 50% of the 
amount of cash actually invested in an eligible public fishery infrastructure project in 
any calendar year. 
B. 
Eligible public fishery infrastructure projects must be determined by the 
department to have a public benefit and constitute: 
(1) A publicly owned infrastructure improvement or facility that enhances the 
State's fisheries; or 
(2) A privately owned infrastructure improvement or facility that is publicly 
accessible. 
3. Credit certificate limit. The aggregate investment eligible for tax credits under 
this subchapter may not exceed $5,000,000 per project. 
4. List of projects. The department shall develop and maintain a list of projects 
eligible under this subchapter. 
5. Revocation of tax credit certificate. The department may revoke a tax credit 
certificate under this subchapter if any representation to the department in connection 
with the application for the certificate proves to have been false when made or if the 
applicant violates any conditions established by the department and stated in the tax 
credit certificate. The revocation may be in full or in part as the department determines. 
The department shall specify the amount of credit being revoked and send notice of the 
revocation to the investor and to the State Tax Assessor. 
6. 
Reports. 
As a condition for determination of eligibility or continuation of 
eligibility for a tax credit certificate under this subchapter, the department may require 
any information or reports from the project that it considers necessary. 
Sec. 3. 36 MRSA §5216-D is enacted to read: 
§5216-D. Maine Fishery Infrastructure Investment Tax Credit Program 
1. Definitions. As used in this section, unless the context indicates otherwise, the 
following terms have the following meanings. 
A. "Certificate" means a tax credit certificate issued by the Department of Inland 
Fisheries and Wildlife pursuant to Title 12, chapter 903, subchapter 8. 
B. "Investment" means an investment for which a certificate has been received. 
I 
C. "Investor" means a taxpayer who has received a certificate. 
2. Credit. An investor is entitled to a credit against the tax otherwise due under this 
Part equal to the amount of the tax credit certificate issued by the Department of Inland 
Fisheries and Wildlife in accordance with Title 12, section 10331 and as limited by 
subsection 3. In the case of partnerships, limited liability companies, S corporations, 
nontaxable trusts and any other entities that are treated as flow-through entities for tax 
purposes under the Code, the individual partners, members, stockholders, beneficiaries or 
equity owners of such entities must be treated as the investors under this section and are 
allowed a credit against the tax otherwise due from them under this Part in proportion to 
their respective interests in those partnerships, limited liability companies, S corporations, 
nontaxable trusts or other flow-through entities. Except as limited or authorized by 
subsection 3 or 4, 25% of the credit must be taken in the taxable year the investment is 
made and 25% per year must be taken in each of the next 3 taxable years. 
3. Limitation. The amount of the credit allowed under this section for anyone 
taxable year may not exceed 50% of the tax imposed by this Part on the investor for the 
taxable year before application of the credit. 
4. Carry forward. A credit under this section not taken because of the limitation in 
subsection 3 must be taken in the next taxable year in which the credit may be taken, and 
the limitation of subsection 3 also applies to the carry-forward years. In no case may this 
carry-forward period exceed 15 years. 
5. Recapture. In the event that the Department of Inland Fisheries and Wildlife 
revokes a certificate, there must be added to the tax imposed on the investor under this 
Part for the taxable year in which the revocation occurs an amount equal to the excess of 
the amount of credit revoked over the amount of credit not yet taken. 
SUMMARY 
This bill provides an income tax credit for investment in eligible public fishery 
infrastructure projects in the State. Eligible projects must be certified by the Department 
of Inland Fisheries and Wildlife, which is required to adopt rules for determination of 
eligibility. Tax certificates may be issued for up to $5,000,000 per project. Credits must 
be taken in increments of 25% over 4 years and may not exceed 50% of the total tax 
imposed on the investor for the applicable year. Unused credits may be carried forward 
for up to 15 years.