An Act To Provide an Income Tax Credit for Logging Companies That Hire Maine Residents
Maine Legislature, Session 125, LD 0338
House Amendment HA_B_H339 (House)
Amends: 36 MRSA §5219-G

HOUSE AMENDMENT" J!r to S.P. 100, L.D. 338, Bill, "An Act To Provide an 
Income Tax Credit for Logging Companies That Hire Maine Residents" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Provide an Income Tax Credit for Persons Engaged in Commercial 
Forestry' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 36 MRSA §5219-GG is enacted to read: 
§5219-GG. Credit for residents of the State employed in commercial forestry 
1. Credit allowed. A credit is allowed to an employer in the commercial forestry 
industry that employs residents of the State to harvest timber in this State and to 
self-employed resident individuals engaged in commercial forestry on a full-time basis. 
2. Amount of credit. The amount of the credit allowed under this section is equal to 
the tax paid during the taxable year under Parts 3 and 5 on internal combustion engine 
fuel, as defined in section 2902, subsection 3, and special fuel, as defined in section 3202, 
subsection 6, used by the employer or self-employed person for commercial forestry up to 
a maximum credit of $2,500. The employer or self-employed person shall report the 
number of gallons purchased and the type of fuel purchased to the State Tax Assessor. 
For purposes of this subsection, "commercial forestry" means the cultivation, 
management, maintenance and development of forests; the harvesting of trees; and the 
transport of forest products as defined in section 1752, subsection 2-E. 
3. 
Limitation. 
The credit allowed under this section may not reduce the tax 
otherwise due under this Part to less than zero. 
4. Rules. The bureau may adopt rules to implement the provisions of this section. 
Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, 
chapter 375, subchapter 2-A. 
Sec. 2. Application. This Act applies to tax years beginning on or after January 1, 
2012. 
HOUSE AMENDMENT 
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HOUSE AMENDMENT " .. /!J" to S.P. 100, L.D. 338 
Sec. 3. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services - Bureau of 0002 
Initiative: Appropriates funds for programming changes to tax forms to establish an 
income tax credit of up to $2,500 based on fuel purchased by employers in the 
commercial forestry industry in the State who employ residents of the State and fuel 
purchased by self-employed residents of the State in the commercial forestry industry in 
the State for tax years beginning on or after January 1,2012. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2011-12 
$0 
$0 
2012-13 
$22,000 
$22,000 
SUMMARY 
This amendment replaces the per employee income tax credit to an employer in the 
commercial forestry industry that employs residents of the State to harvest timber in this 
State with a credit equal to the tax paid during the taxable year on fuel used by the 
employer for commercial forestry up to a maximum credit of $2,500. This amendment 
also provides the tax credit to residents of Maine who are self-employed on a full-time 
basis in the commercial forestry industry. The amendment also adds an appropriations 
and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
SPONSORED BY: __ 
----'>~=-=-=-------_ 
(Representative MART 
TOWN: Eagle L e 
HOUSE AMENDMENT 
Approved: 05/23111 
frac:.. 
LD338 
LR 1438(04) 
An Act To Provide an Income Tax Credit for Logging Companies That Hire Maine Residents 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note for House Amendment "b' 
Sponsor: Rep. Martin of Eagle Lake 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2011-12 
$104,120 
$0 
($104,120) 
($5,840) 
FY 2012-13 
$437,815 
$22,000 
($415,815) 
($21,885) 
Projections 
FY 2013-14 
$412,205 
$0 
($412,205) 
($21,695) 
Projections 
FY 2014-15 
$410,400 
$0 
($410,400) 
($21,600) 
Establishing an income tax credit of up to $2,500 based on fuel purchased by employers in the commercial forestry 
industry in the state who employ residents of the state and fuel purchased by self-employed Maine residents in the 
commercial forestry industry in the state for tax years beginning on or after January 1,2012 will reduce General Fund 
revenues and reduce revenue sharing. The bill as amended also includes a one-time General Fund appropriation in 
fiscal year 2012-13 for Maine Revenue Services to adapt tax forms for the new income tax credit. This fiscal note 
reflects the comprehensive impact of the bill with the House amendment added rather than just the incremental fiscal 
effect of the House amendment. 
LRI438(04) - Fiscal Note - Page 1 of 1