An Act To Provide a Tax Credit for Heating and Cooling System Alternatives and Improvements That Benefit the Environment and Address Climate Change
Maine Legislature, Session 124, LD 0980
Committee: Taxation
Sponsors: SMITH, RA YE, McKANE, FLETCHER, COURTNEY, RECTOR, SIMPSON, CURTIS, FITTS, SAVIELLO, TARDY

Legislative Document 
No. 980 
S.P.363 
In Senate, March 12, 2009 
An Act To Provide a Tax Credit for Heating and Cooling System 
Alternatives and Improvements That Benefit the Environment and 
Address Climate Change 
(EMERGENCY) 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Senator SMITH of Piscataquis. 
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JOY 1. O'BRIEN 
Secretary of the Senate 
Cosponsored by Senator RA YE of Washington, Representative McKANE of Newcastle, 
Representative FLETCHER of Winslow and 
Senators: COURTNEY of York, GOODALL ofSagadahoc, RECTOR of Knox, SIMPSON of 
Androsc8ggin, Representatives: CURTIS of Madison, FITTS of Pittsfield, SAVIELLO of 
Wilton, TARDY of Newport. 
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Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, petroleum-based products are nonrenewable resources that will, over 
time, become more expensive; and 
Whereas, utilization of petroleum-based fuels has made us more dependent on 
foreign sources and threatens our national security; and 
Whereas, incentives are needed to facilitate the conversion of petroleum-based 
heating and cooling systems to alternative energy sources, which will be beneficial to our 
enviromnent and help address climate change; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People ofthe State of Maine as follows: 
Sec. 1. 35-A MR.SA §10008, sub-§6, ~ 
is enacted to read: 
M. Trust fund receipts may fund the income tax credits authorized in Title 36, 
section 5219-DD. 
Sec. 2. 36 MR.SA §5219-DD is enacted to read: 
§S219-DD. Alternative Fuel and Energy Efficiency Credit 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following tenns have the following meanings. 
A. "Alternative fuel" means a fuel used to generate l,,:at that is derived from a 
renewable source, including wood pellets, biomass, !;.c;othermal, wind and tidal 
energy. 
B. "Eligible costs" means necessary and reasonable costs for weatherization and 
efficiency upgrades, the purchase and installation of a heating or cooling system that 
uses alternative fuel, energy efficiency equipment components or a voltage regulation 
technology. 
C. 
"Energy efficiency equipment component" means a part or component of an 
energy system designed for heating or cooling that has been demonstrated by the 
manufacturer to improve the efficiency of an energy system by at least 10% or that 
has been identified by the Maine State Housing Authority or Efficiency Maine as an 
effective method of improving energy efficiency. 
D. "Voltage regulation technology" means a technology that is designed to reduce 
energy consumption, improve grid efficiency and raise or lower voltage dynamically 
and is 99% or more efficient across at least 90% of the load curve. 
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2. Credit allowed. A taxpayer is allowed a credit against the tax otherwise due 
under this Part for the eligible costs of weatherization and the purchase and installation of 
an alternative fuel system for heating or cooling, energy efficiency equipment 
components or voltage regulation technology. The credit may not exceed $5,000. 
3. Limitation; carry-over. This credit may be claimed for any tax year begimling in 
2009 or 2010. The credit is nonrefundable. Any unused portion may be carried over for 
a maximum of 5 years. 
4. Notice; transfer. By June 30th annually the State Tax Assessor shall notify the 
State Controller of the total value of credits granted under this section during the current 
fiscal year. The State Controller shall transfer that amount from the Energy and Carbon 
Savings Trust Fund established in Title 35-A, section 10008 to the General Fund. 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill provides an income tax credit of up to $5,000 for the costs of an alternative 
fuel heating or cooling system, energy efficiency equipment components and voltage 
regulation technology. The credit may be claimed for installations in tax years beginning 
in 2009 or 2010 and may be carried over up to 5 years. The General Fund costs of the 
credit are reimbursed from the Energy and Carbon Savings Trust Fund.