An Act To Create the Maine Fishery Infrastructure Tax Credit
Maine Legislature, Session 124, LD 1252
Committee: Taxation
Sponsors: WATSON, DAMON, PERRY
Amends: 5 MRSA §13070, 36 MRSA §5216-D

FIRST IlEGULAR SF,SSION-2009 
Legislative Document 
1252 
H.P.871 
House of Representatives, March 30,2009 
. An Act To Create the Maine Fishery Infrastructure Tax Credit 
Reference to the Committee on Taxation suggested and ordered printed. 
. Presented by Representative WATSON of Bath. 
Cosponsored by Senator DAMON of Hancock and 
Senator: PERRY of Penobscot. 
Printed l'n recycled PJper 
'!Jl~ 111· 77lt1C~ 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: . 
Sec. 1. 5 MRSA §13070~J, sub-§l,,o, as amended by PL 2005, c. 519, Pt. 
TTT, § 1, is further amended to read: 
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O. "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 inv,estment under Title 36, section 5216-B; ef 
(10) The credit for pollution-reducing boilers under Title 36, section 5219-Z,.; or 
(11) The credit for Maine fishery infrastructure contributions under. Title 36, 
section 5216-0. 
Sec. 2. 12 MRSA c. 903, sub-c. 8 'is enacted to read: 
SUBCHAPTER 8 
MAINE FISHERY INFRASTRUCTURE TAX CREDIT CERTIFICATES 
§10331. Tax credit certificates 
1. 
Authorization. 
In order to encourage equity contribution in infrastructure 
improvements and facilities that enhance the State's fisheries, the department is 
authorized to issue certificates of eligibility for' the Maine. fishelY infrastructure 
contribution tax credit permitted by Title 36, section 5216-0, subject to the requirements, 
of this section. 
2. Eligibility for tax credit certificate; niles. The department shall adopt rules in 
accordance with the Maine Administrative Procedure Act to implement this subchapter. 
Rules adopted pursuant to this subsection are major substantive rules as defined by Title 
5, chapter 375, subchapter 2-A. The rules must establish requirements for public fishery 
infrastructure project eligibility for a tax credit certificate and must include at least the 
following. 
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A. A tax credit certificate may be issued in an amount not more than 50% of the 
amount of cash actuaily contributed to an eligible public fishery infrastructure project 
in any calendar year. 
B. 
Eligible public fishelY infrastructure projects must be determined by the 
department to have a public benefit and constitute: 
(J) A publicly owned infrastructure improvement or facility that enhances the 
State's fisheries: or 
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(2) A privately owned infrastructure improvement or facility that is publicly 
accessible. 
C. A tax credit certificate may not be issued for a contribution to an eligible public 
fishery infrastructure project in which the contributor has a financial interest. 
3. Credit certificate limit. . The aggregate contribution eligible for tax credits under 
this subchapter may not exceed· $5,000,000 per eligible public fishery infrastructure 
project. 
4. List of projects. The depal1ment shall develop and maintain a list of public 
fishery infrastructure 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 celiificate. 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 contributor and to the State Tax Assessor. 
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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 eligible public fishelY infrastructure project that it 
considers necessary. 
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Sec. 3. 36 MRSA §5216-D is enacted to read: 
§5216-D. Maine fishery infrastructure contribution tax credit 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Cel1ificate" means a tax credit certificate issued by the Department of Inland 
Fisheries and Wildlife pursuant to Title 12, chapter 903, subchapter 8. 
B. "Contribution" means a contribution for which a certificate has been received. 
C. "Contributor" means a taxpayer who has received a certificate . 
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.. Credit. Acontributor, except for a flow-through entity subject to the franchise 
tax imposed pursuant to chapter 819, is entitled to a credit against the tax otherwise due 
under th is PaI1 equal to the amount of the tax credit certificate issued by the Department 
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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, except for flow-through entities subject to the franchise tax 
imposed pursuant to chapter '819, the individual, partners, members, stockholders, 
beneficiaries or equity owners of such entities must be treated as the contributors under. 
this section and are allowed a credit against the tax otherwise due from them under this 
Partin 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 contributor 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 
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the limitation of subsection 3 also applies to the carry~forward years. In no case may this 
carry-forwa~d period exceed 15 yeats. 
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5. Recapture; interest; time limit. In the event that the Department of hiland 
Fisheries and Wildlife revokes-a certificate, there must be added to the tax imposed on the 
contributor 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, plus interest at the legal rate. 
The penalty specified in this subsection may be imposed only for the shorter of 5 tax 
years and the number of years a ·tax credit was allowed under a certificate subsequently 
revoked by the Department of Inland Fisheries and Wildlife. 
Sec. 4. Application. This Act applies to tax years be'ginning on or after January 1, 
2010. 
SUMMARY 
This bill provides an income tax credit for contributions to 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 contributor for the applicable year. 
Unused credits may be carried 
forward for up to 15 years. 
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