An Act To Provide an Income Tax Credit for Logging Companies That Hire Maine Residents
Maine Legislature, Session 125, LD 0338
House Amendment HA_A_H307 (House)

HOUSE AMENDMENT "/I-,, 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 in section 1 in §5219-FF by striking out all of subsection 2 (page 1, 
lines 7 to 9 in L.D.) and inserting the following: 
'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 for commercial forestry up to a maximum credit of 
$2,500. The employer 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.' 
Amend the bill by inserting after section 1 the following: 
'Sec. 2. Application. This Act applies to tax years beginning on or after January 1, 
2012. 
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 for tax years 
beginning on or after January 1,2012. 
GENERAL FUND 
All Other 
2011-12 
$0 
HOUSE AMENDMENT 
2012-13 
$22,000 
~ e." 
~~ 
HOUSE AMENDMENT "If" to S,p, 100, LD, 338 
GENERAL FUND TOTAL 
$0 
$22,000 
SUMMARY 
This amendment replaces the per employee income tax credit to an employer in the 
logging 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, The amendment also adds an 
appropriations and allocations section, 
FISCAL NOTE REQUIRED 
(See attached) 
SPONSORED BY: ----MUA:::w.~=~---­
(Representative MART 
TOWN: Eagle 
HOUSE AMENDMENT 
Approved: 05119111 
;:!vac::.. 
LD338 
LR 1438(03) 
An Act To Provide an Income Tax Credit for Logging Companies That Hire Maine Residents 
Fiscal Note for House Amendment "ft, 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Sponsor: Rep. Martin of Eagle Lake 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2011-12 
$73,245 
$0 
($73,245) 
($3,855) 
FY 2012-13 
$314,600 
$22,000 
($292,600) 
($15,400) 
Projections 
FY 2013-14 
$289,645 
$0 
($289,645) 
($15,235) 
Projections 
FY 2014-15 
$287,945 
$0 
($287,945) 
($15,155) 
Establishing an income tax credit of up to $2,500 based on internal combustion engine fuel purchased by employers in 
-the commercial forestry industry in Maine who employ residents of the state for tax years beginning on or after 
January 1,2012 will reduce General Fund revenue and reduce revenue sharing starting in fiscal year 2011-12. 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. 
, . i 
LR1438(03) - Fiscal Note - Page 1 of 1