An Act To Encourage the Production of Liquid Biofuels
Maine Legislature, Session 124, LD 0589
Committee: Taxation
Sponsors: BUTTERFIELD
Amends: 36 MRSA §5219-X, 36 MRSA §5219-D

Legislative Document 
No. 589 
H.P.427 
House of Representatives, February 17, 2009 
An Act To Encourage the Production of Liquid Biofuels 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative BUTTERFIELD of Bangor. 
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MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA §5219-X; sub-§2, as enacted by PL 2003, c. 698, §1, IS 
amended to read: 
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2. Credit allowed. A taxpa;er ~ngaged in the production of biofuels in the State 
who has received certification wider subsection 4 is allowed a credit against the tax 
imposed by this Part on income derived during the taxable year from the production of 
biofuel in the amount of ~ ill per gallon of liquid biofuel or gaseous biofuel with a 
BTU equivalent to that of one gallon of gasoline that replaces the use of petroleum or 
liquid fuels derived from other fossil carbon sources. In blends with petroleum or other 
nonbiofuels, the credit is allowed only on the portion of that blend that the biofuel 
constitutes. Biofuel for which the credit is allowed must meet state and federal regulatory 
requirements applicable to the nature and intended use of the fuel produced. 
Sec.2. 36 MRSA §5219-DD is enacted to read: 
. 14 
§S219-DD. BiofueI production conversion credit 
151. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Wood mass-derived biofuel" means biofuel as dermed under section 5219-X, 
subsection 1 that is derived from forest products. 
B. "Wood mass production facility" means a facility that uses forest products in the 
process of production and manufacturing of other products. 
2. Credit allowed. A taxpayer is allowed a credit equal to 25% of the capital costs 
of converting an existing wood mass production facility to a facility for the production of 
wood mass-derived biofuel that is certified by the Commissioner of Environmental 
Protection as eligible for the credit under section 5219-X. 
3. Limitations. A person entitled to a credit under this section for any taxable year 
may carry over and apply the portion of any unused credits for anyone or more of the 
next succeeding 4 taxable years. The credit allowed, including carry-overs, may not 
reduce the tax otherwise due under this Part to less than zero. 
Sec. 3. Application. Those sections of this Act that amend the Maine Revised 
Statutes, Title 36, section 5219-X, subsection 2 and enact Title 36, section 5219-DD 
apply to tax years beginning on or after January 1, 2009. 
Sec. 41. 
Appropriations and allocations. The following appropriations and 
allocations are made. 
ECONOM][C AND COMMUN][TY DEVELOPMENT, DEPARTMENT OF 
Office of ][nnovation 
Initiative: Provides funds to the Maine Technology Institute to fund research into cost-
effective technology to convert forest resources to biofuels. 
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GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
SUMMARY 
2009-10 
$500,000 
$500,000 
2010-11 
$0 
$0 
This bill increases the income tax credit for the production of biofuels from 5¢ per 
gall or: to 15¢ per gallon, enacts an income tax credit equal to 25% of the capital costs of 
converting an existing wood mass production facility to a facility for the production of 
wood mass-derived biofuel and appropriates $500,000 in fiscal year 2009-10 for the 
Maine Technology Institute to fund research into cost-effective technology to convert 
forest resources to biofuels. 
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