An Act To Help Facilitate New Career Opportunities and Attract Major Private Investment
Maine Legislature, Session 127, LD 1431
Committee: Labor, Commerce, Research and Economic Development
Sponsors: CUSHING
Amends: 10 MRSA §963-A, 10 MRSA §1043, 10 MRSA §1053, 26 MRSA §2031, 30-A MRSA §5250-J, 35-A MRSA §10124, 36 MRSA §2021, 36 MRSA §5219-N, 36 MRSA §6754

Legislative Document 
No. 1431 
S.P. 539 
In Senate, May 21, 2015 
An Act To Help Facilitate New Career Opportunities and Attract 
Major Private Investment 
Reference to the Committee on Labor, Commerce, Research and Economic Development 
suggested and ordered printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by Senator CUSHING of Penobscot.  (GOVERNOR'S BILL) 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  10 MRSA §963-A, sub-§10, ¶T, as amended by PL 2013, c. 378, §2, is 
further amended to read: 
T.  An Efficiency Maine project; and 
Sec. 2.  10 MRSA §963-A, sub-§10, ¶U, as enacted by PL 2013, c. 378, §3, is 
further amended to read: 
U.  Any offshore wind energy development as defined in Title 35-A, section 102, 
subsection 10-A or project to manufacture components for an offshore wind energy 
development.; and 
Sec. 3.  10 MRSA §963-A, sub-§10, ¶V is enacted to read: 
V.  A transformational business expansion project. 
Sec. 4.  10 MRSA §963-A, sub-§49-K is enacted to read: 
49-K.  Transformational business expansion project.  "Transformational business 
expansion project" means, when done by a qualified applicant certified pursuant to Title 
30-A, section 5250-J, subsection 4-D, the construction, development, rehabilitation, 
expansion, modernization or acquisition of any building, structure, system, machinery, 
equipment or facility in a military redevelopment zone, as defined in Title 30-A, section 
5250-I, subsection 11-A, that has a projected cost of $25,000,000 or more and the 
operation of which is projected to result in a net gain of at least 500 job opportunities. 
"Transformational business expansion project" does not include an electric rate 
stabilization project or a project primarily involved in the provision of housing or retail 
sales to consumers. 
Sec. 5.  10 MRSA §1043, sub-§2, ¶J, as amended by PL 2003, c. 506, §2, is 
further amended to read: 
J.  In the case of major business expansion projects and transformational business 
expansion projects, the applicant is creditworthy and there is a strong likelihood that 
the revenue obligation securities will be repaid through the revenues of the project 
and any other sources of revenues and collateral pledged to the repayment of those 
securities.  In order to make this determination, the authority shall consider such 
factors as it considers necessary to measure and evaluate the sufficiency of the 
pledged revenues to repay the obligations, including: 
(1)  Whether individuals or entities obligated to repay the obligations have 
demonstrated sufficient revenues from the project or from other sources to repay 
the obligations, and a strong probability that those revenues will continue to be 
available for the term of the revenue obligation securities; 
(2)  Whether the applicant demonstrates a strong probability that the project will 
continue to operate and provide the public benefits projected to be created for the 
term of the revenue obligation securities; 
(3)  Whether the applicant demonstrates that the benefits projected to be created 
by the project are enhanced through the use of financing assistance from the 
authority; 
(4)  Whether the applicant's creditworthiness is demonstrated by such factors as 
historical financial performance, management ability, its plan for marketing its 
product or service and its ability to access conventional financing; 
(5)  Whether the applicant meets or exceeds industry average financial 
performance ratios commonly accepted in determining creditworthiness in that 
industry; 
(6)  Whether the applicant demonstrates that the need for authority assistance is 
due to the reduced cost and increased flexibility of the financing for the project 
that result from authority assistance and not from an inability to obtain necessary 
financing without the capital reserve fund security provided by the authority; and 
(7)  Whether collateral securing the repayment obligation is reasonably sufficient 
under the circumstances. 
Financing assistance for any one major business expansion project may not exceed 
$25,000,000 in loan amount.  For any one transformational business expansion 
project, the financing assistance amount is up to $400,000,000 in loan amount.  The 
authority may establish, pursuant to rules adopted in accordance with Title 5, chapter 
375, subchapter 2, application procedures, approval criteria and reasonable fees for 
major business expansion projects and transformational business expansion projects; 
Sec. 6.  10 MRSA §1053, sub-§6, as amended by PL 2011, c. 586, §5, is further 
amended to read: 
6.  Securities outstanding.  The principal amount of revenue obligation securities the 
authority may have outstanding at any one time, to which subsection 5 is stated to apply 
in the trust agreement or other document, may not exceed an aggregate principal amount 
equal to $912,000,000 $1,412,000,000 as follows: 
A.  The sum of $180,000,000 consisting of not more than $150,000,000 for loans and 
up to $30,000,000 for use of bond proceeds to fund capital reserve funds for revenue 
obligation securities issued pursuant to this subchapter relating to loans for electric 
rate stabilization projects or loans for energy distribution system projects; 
B.  The sum of $120,000,000 $620,000,000 consisting of not more than $100,000,000 
for loans and up to $20,000,000 for use of bond proceeds to fund capital reserve 
funds for revenue obligation securities issued pursuant to this subchapter relating to 
loans for major business expansion projects and not more than $400,000,000 for 
loans and up to $100,000,000 for use of bond proceeds to fund capital reserve funds 
for revenue obligation securities issued pursuant to this subchapter relating to loans 
for transformational business expansion projects; 
C.  The sum of $57,000,000 consisting of not more than $45,000,000 for loans and up 
to $12,000,000 for use of bond proceeds to fund capital reserve funds for revenue 
obligation securities issued pursuant to this subchapter relating to workers' 
compensation residual market mechanism projects; 
D.  The sum of $150,000,000 less the aggregate outstanding balance of mortgage 
loans secured by capital reserve funds pursuant to section 1032 for all other revenue 
obligation securities issued pursuant to this subchapter; 
E.  The sum of $120,000,000 consisting of not more than $100,000,000 for loans and 
up to $20,000,000 for use of bond proceeds to fund capital reserve funds for revenue 
obligation securities issued pursuant to this subchapter relating to loans for paper 
industry job retention projects;  
F.  The sum of $100,000,000 consisting of not more than $85,000,000 for loans and 
up to $15,000,000 for use of bond proceeds to fund capital reserve funds for revenue 
obligation securities issued pursuant to this subchapter relating to loans for 
transmission facilities projects as defined in section 963-A, subsection 49-H; and 
G.  The sum of $35,000,000 consisting of not more than $30,000,000 for the purposes 
stated in section 1020-A, subsection 1, paragraphs A and C and up to $5,000,000 for 
use of bond proceeds to fund capital reserve funds for revenue obligation securities 
issued pursuant to section 1020-A, subsection 1, paragraph A. 
The amount of revenue obligation securities issued to refund securities previously issued 
may not be taken into account in determining the principal amount of securities 
outstanding, as long as proceeds of the refunding securities are applied as promptly as 
possible to the refunding of the previously issued securities.  In computing the total 
amount of revenue obligation securities of the authority that may at any time be 
outstanding for any purpose, the amounts of the outstanding revenue obligation securities 
that have been issued as capital appreciation bonds or as similar instruments are valued as 
of any date of calculation at their then current accreted value rather than their face value. 
Sec. 7.  26 MRSA §2031, sub-§5, ¶¶G and H, as enacted by PL 1995, c. 665, 
Pt. DD, §5 and affected by §12, are amended to read: 
G.  Employer willingness to hire new labor force entrants, economically 
disadvantaged individuals, persons with disabilities or dislocated workers; or 
H.  Employer willingness to provide a registered apprenticeship for current 
employees or new hires.; or 
Sec. 8.  26 MRSA §2031, sub-§5, ¶I is enacted to read: 
I.  Certification as a qualified applicant for a transformational business expansion 
project pursuant to Title 30-A, section 5250-J, subsection 4-D. 
Sec. 9.  26 MRSA §2031, sub-§8, as amended by PL 2009, c. 213, Pt. JJJ, §1, is 
further amended to read: 
8.  Eligibility for funding.  Applicants eligible to receive funding from the program 
include, but are not limited to, employers, applicants certified pursuant to Title 30-A, 
section 5250-J, subsection 4-D, regional and local economic development agencies or 
partnerships, community-based organizations, job training service providers, registered 
apprenticeship service providers, local adult education providers and postsecondary 
education institutions. 
An applicant that is not a business shall demonstrate, in partnership with a business or a 
consortium of businesses, the ability to link training services with actual job creation, 
expansion, upgrade or retention.  Training provided under this section is considered 
approved training under the unemployment insurance laws and the laws regarding 
dislocated workers administered by the Department of Labor. 
Training funds authorized under this section must be paid to the employer on a 
reimbursement basis. 
Notwithstanding any provision of law to the contrary, a qualified applicant for a 
transformational business expansion project certified pursuant to Title 30-A, section 
5250-J, subsection 4-D is eligible for funds available under the Competitive Skills 
Scholarship Program established pursuant to section 2033. 
Sec. 10.  26 MRSA c. 43 is enacted to read: 
CHAPTER 43 
RIGHT TO REFRAIN FROM JOINING A UNION IN TRANSFORMATIONAL 
BUSINESS EXPANSION PROJECT 
§3501.  Definitions 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings. 
1.  Employer.  "Employer" means the owner of a transformational business 
expansion project certified pursuant to Title 30-A, section 5250-J, subsection 4-D. 
2.  Labor organization.  "Labor organization" means an organization, agency or 
employee representation committee or union that exists for the purpose, in whole or in 
part, of negotiating or bargaining with employers on behalf of employees concerning 
wages, rates of pay, hours of work, other conditions of employment or other forms of 
compensation. 
§3502.  Right to refrain 
Notwithstanding any law to the contrary, a person may not be required, as a condition 
of employment or continuation of employment in a transformational business expansion 
project, to: 
1.  Member.  Become or remain a member of a labor organization; 
2.  Dues.  Pay any dues, fees, assessments or other similar charges, however 
denominated, of any kind or amount to a labor organization; or 
3.  Payment to 3rd party.  Pay to a charity or other 3rd party, in lieu of payments 
specified in subsection 2, any amount equivalent to or a pro rata portion of dues, fees, 
assessments or other charges required of members of a labor organization. 
§3503.  Agreements in violation 
An agreement, understanding or practice, written or oral, implied or expressed, 
between a labor organization and an employer that violates a provision of this chapter is 
unlawful and without any legal effect. 
§3504.  Penalty 
A person who violates any provision of this chapter commits a Class D crime. 
§3505.  Injunctive relief 
A person injured as a result of another person's violation or threatened violation of 
the provisions of this chapter is entitled to injunctive relief against the person violating or 
threatening to violate this chapter. 
§3506.  Damages 
A person injured as a result of a violation or threatened violation of the provisions of 
this chapter may recover all damages, including court costs and reasonable attorney's 
fees, resulting from the violation or threatened violation.  A recovery of damages under 
this section is independent of and in addition to the penalty provided in section 3504. 
§3507.  Duty to investigate and enforce 
The Attorney General shall investigate complaints of a violation or threatened 
violation of this chapter and shall prosecute any person violating any of its provisions.  
The Attorney General shall use all means in the command of the Attorney General to 
ensure effective enforcement of this chapter. 
§3508.  Jurisdiction 
The Superior Court has jurisdiction to hear and decide prosecutions of all offenses 
under this chapter. 
§3509.  Exceptions 
This chapter does not apply to the following: 
1.  Federal Railway Labor Act.  Employers and employees covered by the federal 
Railway Labor Act; 
2.  Federal employers and employees.  Federal employers and employees; 
3.  Federal enclaves.  Employers and employees on federal enclaves; 
4.  Federal preemption or conflict.  Areas of federal law with which this chapter is 
in conflict or that preempt this chapter; or 
5.  Existing contract.  An employment contract entered into before the effective date 
of this chapter during the term of that contract; however, this chapter applies to a contract 
entered into, renewed or extended on or after the effective date of this chapter. 
Sec. 11.  30-A MRSA §5250-J, sub-§4-D is enacted to read: 
4-D.  Qualified transformational business expansion project.  A business certified 
under this subsection as a qualified transformational business expansion project qualifies 
for the incentives provided by this subsection. 
A.  As used in this subsection, unless the context otherwise indicates, the following 
terms have the following meanings. 
(1)  "Certified applicant" means a qualified applicant that has received a 
certificate of approval for a transformational business expansion project pursuant 
to this subsection. 
(2)  "Employment" means, for each calendar year, the amount determined by 
adding the total number of qualified employees of a certified applicant on each of 
consecutive measurement days of that calendar year as chosen by the certified 
applicant and then dividing that sum by 6. 
(3)  "Full-time employee" means a person who works at least 36 hours per week. 
(4)  "Incentives" means: 
(a)  The income tax credit for investment in a qualified transformational 
business expansion project pursuant to Title 36, section 5219-NN; 
(b)  The reimbursement of sales tax pursuant to Title 36, section 2021; 
(c)  Reimbursement of Maine income tax withholding pursuant to Title 36, 
section 6754, subsection 1, paragraph E; 
(d)  Long-term, credit-enhanced financing pursuant to Title 10, chapter 110, 
subchapter 3; 
(e)  Workforce development training and recruitment assistance pursuant to 
the Governor's Jobs Initiative Program established pursuant to Title 26, 
chapter 25, subchapter 4; and 
(f)  Energy cost reimbursement pursuant to Title 35-A, section 10124. 
(5)  "Qualified applicant" means an applicant for benefits available under this 
subsection for a transformational business expansion project that satisfies the 
following criteria: 
(a)  The applicant owns or operates or proposes to construct a business 
facility within this State; and 
(b)  The applicant proposes to make a qualified investment and demonstrates 
that the investment would not occur within the State absent the availability of 
the incentives offered to the transformational business expansion project. 
(6)  "Qualified employee" means an individual: 
(a)  Who is employed at a military redevelopment zone as a full-time 
employee of a qualified transformational business expansion project and is 
employed as a direct result of the project, excluding an employee or position 
shifted by the employer to the project location from another location in the 
State; 
(b)  Whose income from employment under division (a) is taxable under 
Title 36, chapter 803; 
(c)  For whom a retirement program is provided subject to the federal 
Employee Retirement Income Security Act of 1974, 29 United States Code, 
Sections 101 to 1461, as amended; 
(d)  For whom health insurance is available; and 
(e)  Whose income calculated on a calendar year basis is greater than the 
most recent per capita annual income in the State as determined by the 
United States Department of Commerce. 
(7)  "Qualified investment" means expenditures incurred by a qualified 
transformational business expansion project on or after October 1, 2015.  
"Qualified investment" does not include investments in an electric rate 
stabilization project, as defined in Title 10, section 963-A, subsection 7-A, or in a 
project primarily involved in the provision of housing or retail sales to 
consumers. 
(8)  "Qualified transformational business expansion project" means a business 
that is a qualified Pine Tree Development Zone business and that proposes to 
make a qualified investment of at least $25,000,000 in, and add at least 500 
qualified employees at, a military redevelopment zone within 10 years from the 
date of certification under paragraph B.  The business must demonstrate that the 
qualified investment would not occur absent the availability of the incentives 
made available under this subsection.  For purposes of this subsection, employees 
added or that will be added for certification as a qualified Pine Tree Development 
Zone business must be added with respect to the project for which the business is 
certified as a qualified transformational business expansion project under this 
subsection. 
B.  This paragraph governs the procedures for application for and approval and 
revocation of certification as a qualified transformational business expansion project. 
(1)  In addition to an application for certification as a qualified Pine Tree 
Development Zone business under section 5250-O, a business must submit an 
application to the commissioner to receive incentives under this subsection.  The 
application must contain information, in a form prescribed by the commissioner, 
demonstrating that the business meets the requirements for a qualified 
transformational business expansion project. 
(2)  The commissioner, within 7 days of receipt of the application under 
subsection 1 for certification as a qualified applicant, shall review the information 
contained in the application and issue a written determination as to whether the 
applicant is a qualified transformational business expansion project eligible to 
apply for incentives to the Governor, the President of the Senate and the Speaker 
of the House of Representatives.  No later than 2 days following notice of that 
determination, if the commissioner determines that the applicant is a qualified 
transformational business expansion project, the commissioner shall issue a 
certificate of approval to the applicant.  If the commissioner determines that the 
applicant is not a qualified transformational business expansion project, the 
commissioner shall issue a denial of the application. 
(3)  The commissioner shall revoke a certificate issued under this subsection: 
(a)  If the qualified transformational business expansion project does not 
invest at least $10,000,000 and hire at least 250 qualified employees within 5 
years of the date of the certificate issued under this subsection; or 
(b)  If the qualified transformational business expansion project does not 
invest at least $25,000,000 and hire at least 500 qualified employees within 
years of the date of the certificate issued under this subsection. 
A qualified transformational business expansion project whose certificate issued 
under this subsection has been revoked may not apply or qualify for incentives 
for a period of 10 years after the date of revocation of the certificate. 
C.  The commissioner and the Commissioner of Labor shall work with other agencies 
across State Government involved in employment or skills training to identify and 
marshal the necessary financial resources to assist a certified applicant who makes a 
qualified investment in recruiting and training qualified employees. 
D.  On or before March 1st of each year a certified applicant, on forms prescribed by 
the commissioner, shall file a report with the commissioner and the State Tax 
Assessor for the immediately preceding calendar year, referred to in this paragraph as 
"the report year," that contains the following information: 
(1)  The number of qualified employees of the qualified transformational 
business expansion project for the calendar year immediately preceding the report 
year; and 
(2)  The incremental level of qualified investments made for the calendar year 
immediately preceding the report year. 
The commissioner shall audit the report filed under this paragraph to ensure 
continued eligibility for the incentives provided under this subsection. 
E.  The commissioner shall report to the joint standing committee of the Legislature 
having jurisdiction over taxation matters and the joint standing committee of the 
Legislature having jurisdiction over labor, commerce, research and economic 
development matters aggregate annual data on employment levels and qualified 
investment amounts of qualified transformational business expansion projects under 
this subsection. The report must be made by March 15th of the first regular session of 
each Legislature beginning with the 128th Legislature. 
F.  A qualified transformational business expansion project, when awarding contracts, 
purchasing supplies or subcontracting work related to a qualified investment, shall 
give preference, to the greatest extent possible, to Maine resident individuals, 
companies and bidders as long as the supplies, products and bids meet the standards 
required by the qualified transformational business expansion project for best value, 
including, without limitation, quality and delivery, and are competitively priced.  The 
qualified transformational business expansion project, in conjunction with the 
department, shall sponsor regional seminars for Maine businesses on conducting 
business with the qualified transformational business expansion project. 
Sec. 12.  35-A MRSA §10124 is enacted to read: 
§10124.  Reimbursement for transformational business expansion projects 
1.  Reimbursement allowed.  Notwithstanding any provision of this chapter to the 
contrary, a qualified applicant for a transformational business expansion project that is 
certified pursuant to Title 30-A, section 5250-J, subsection 4-D that incurs electric supply 
rates that are provided by a transmission and distribution utility that exceed the national 
average industrial rate, as published by the United States Energy Information 
Administration for the prior calendar year, is eligible for an annual reimbursement of 
those excess costs for up to 5 years following certification of the transformational 
business expansion project. 
2.  Administration.  The commission shall establish routine technical rules pursuant 
to Title 5, chapter 375, subchapter 2-A to ensure accurate reporting by a qualified 
applicant for a transformational business expansion project eligible under subsection 1 
and shall accurately assess and verify the annual electric rates experienced by the 
transformational business expansion project.  The commission shall calculate and the 
trust shall disburse to that qualified applicant the appropriate annual reimbursement from 
the funding provided to the commission under section 10109, subsection 4, paragraph A. 
Sec. 13.  36 MRSA §2021 is enacted to read: 
§2021.  Reimbursement of certain taxes related to qualified transformational 
business expansion projects 
1.  Definitions.  As used in this section, unless the context otherwise indicates, 
"qualified investment" and "qualified transformational business expansion project" have 
the same meanings as in Title 30-A, section 5250-J, subsection 4-D, paragraph A. 
2.  Reimbursement allowed.  A reimbursement is allowed as provided in this section 
for a tax paid pursuant to this Part with respect to the sale or use of tangible personal 
property that is physically incorporated in and becomes a permanent part of real property 
that is owned by or sold to a qualified transformational business expansion project. 
3.  Claim for reimbursement.  Claims under this section for reimbursement of taxes 
are controlled by this subsection. 
A.  A claim for reimbursement under this section must be filed by a contractor or 
subcontractor of a qualified transformational business expansion project with the 
assessor within 3 years from the date on which the tangible personal property was 
incorporated into real property. The reimbursement claim must be submitted on a 
form prescribed by the assessor and must be accompanied by a statement from a 
qualified transformational business expansion project certifying, under penalties of 
perjury, that the personal property with respect to which the tax was paid by the 
claimant has been placed in use directly and primarily in real property directly related 
to the project for which the qualified transformational business expansion project is 
certified. All records pertaining to that certification and to the transactions in question 
must be retained for at least 6 years by the contractor or subcontractor, by the 
qualified transformational business expansion project and by the person, if any, that 
sold the real property in question. The reimbursement claim must be accompanied by 
such additional information as the assessor may require. If a sales or use tax is 
included in the contractor's or subcontractor's contract price, the contractor or 
subcontractor shall file, at the request of the qualified transformational business 
expansion project, a claim for reimbursement in accordance with this section and pay 
the reimbursement to the qualified transformational business expansion project. 
B.  If, by agreement between the contractor or subcontractor and the qualified 
transformational business expansion project, the contractor or subcontractor assigns 
its right to claim and receive reimbursement, the qualified transformational business 
expansion project must file a claim for reimbursement in accordance with this 
subsection. A reimbursement may not be issued to the qualified transformational 
business expansion project under this paragraph unless the contractor or 
subcontractor has previously submitted to the bureau a certificate, signed by the 
contractor or subcontractor, releasing the contractor's or subcontractor's claim to the 
reimbursement. The certificate must be in a format prescribed by the assessor. 
4.  Limitations.  Limitations on reimbursements made pursuant to this section are as 
set out in this subsection. 
A.  Reimbursements made by the assessor pursuant to this section are limited to taxes 
paid in connection with sales of tangible personal property that occur within a 20-
year period beginning on the date the qualified transformational business expansion 
project is certified under Title 30-A, section 5250-J, subsection 4-D. 
B.  Reimbursement pursuant to this section of taxes paid in connection with the sale 
of tangible personal property subsequently incorporated into real property may not be 
made when those real property improvements: 
(1)  Are owned by more than one person prior to their acquisition by the qualified 
transformational business expansion project whose certification accompanies the 
reimbursement claim pursuant to subsection 3; or 
(2)  Have been used for a business purpose by a person other than the qualified 
transformational business expansion project whose certification accompanies the 
reimbursement claim pursuant to subsection 3. 
5.  Audit.  The assessor has the authority to audit any claim filed under this section. 
If the assessor determines that the amount of the claimed reimbursement is incorrect, the 
assessor shall redetermine the claim and notify the claimant in writing of the 
redetermination. If the claimant has received reimbursement of an amount that the 
assessor concludes should not have been reimbursed, the assessor may issue an 
assessment for that amount within 3 years from the date the reimbursement claim was 
filed or paid, whichever is later, or at any time if a fraudulent reimbursement claim was 
filed. The claimant may seek reconsideration, pursuant to section 151, of the 
redetermination or assessment. 
6.  Payment of claims.  The assessor shall determine the benefit for each claimant 
under this section. The assessor shall pay those amounts to each qualified 
transformational business expansion project qualifying for the benefit under this section 
within 30 days after receipt of a properly completed claim. Interest is not allowed on any 
payment made to a claimant pursuant to this section. 
Sec. 14.  36 MRSA §5219-NN is enacted to read: 
§5219-NN.  Credit for qualified transformational business expansion project 
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A.  "Payroll" means the total amount paid in this State during the tax period by the 
taxpayer for compensation, including wages, pretax employee contributions made to 
a benefit package and employer contributions made to an employee benefit package. 
B.  "Property" means the average value of the taxpayer's real and tangible personal 
property that is owned or rented and used during the tax period. Property owned by 
the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at 
times the annual rental rate paid by the taxpayer. 
C.  "Qualified transformational business expansion project" means a business 
certified under Title 30-A, section 5250-J, subsection 4-D. 
2.  Credit allowed.  Notwithstanding any other provision of law, a taxpayer that is a 
qualified transformational business expansion project is allowed a credit in the amount of: 
A.  One hundred percent of the tax that would otherwise be due under this Part for 
each of the first 10 tax years beginning with the tax year in which the taxpayer is 
certified pursuant to Title 30-A, section 5250-J, subsection 4-D; and 
B.  Fifty percent of the tax that would otherwise be due under this Part for each of the 
tax years following the time period in paragraph A. 
3.  Apportioned credit in certain circumstances.  In the case of a qualified 
transformational business expansion project that engages in both qualified and 
nonqualified transformational business expansion project activities in this State, the credit 
provided for in this section is limited to that portion that is attributable to the qualified 
transformational business expansion project activity. The limitation is calculated by an 
apportionment. The apportionment is determined by a fraction, the numerator of which is 
the property value plus the payroll for the taxable year attributed to the qualified 
transformational business expansion project activity of the business and the denominator 
of which is the statewide property value plus payroll for the taxable year of the qualified 
transformational business expansion project. 
If the qualified transformational business expansion project is a taxable corporation that 
has affiliated groups, as defined in section 5102, subsection 1-B, engaged in a unitary 
business, as defined in section 5102, subsection 10-A, the property and payroll values in 
the State of the unitary affiliated groups must be included in the apportionment fraction. 
The resulting fraction must be multiplied by the total tax liability otherwise due under this 
Part of the qualified transformational business expansion project and those affiliated 
groups. 
If the apportionment provisions of this subsection do not fairly reflect the amount of the 
credit associated with the taxpayer's qualified transformational business expansion project 
activity, the taxpayer may petition for, or the State Tax Assessor may require, in respect 
to all or any part of the taxpayer's business activity, the employment of another 
reasonable method to effectuate an equitable apportionment of the credit associated with 
the taxpayer's qualified transformational business expansion project activity. 
4.  Members of pass-through entities.  A member of a pass-through entity that is a 
qualified transformational business expansion project is allowed a credit under this 
section based on the tax due under this Part related to items of income, gain, deduction, 
loss or other items required to be reported by the pass-through entity to the member. For 
purposes of this subsection, "pass-through entity" means a corporation that for the 
applicable tax year is treated as an S corporation under the Code and a partnership, trust, 
limited liability company or similar entity that for the applicable tax year is not taxed as a 
C corporation for federal tax purposes; "member" means an individual or other owner of 
a pass-through entity. 
5.  Limitation.  The credit provided by this section may not be claimed for tax years 
beginning on or after January 1, 2035. 
Sec. 15.  36 MRSA §6754, sub-§1, ¶E is enacted to read: 
E.  For a qualified transformational business expansion project certified under Title 
30-A, section 5250-J, subsection 4-D, the reimbursement is equal to 80% of the 
Maine income tax withheld from each qualified employee during each of the first 10 
calendar years for which reimbursement is requested, beginning with the calendar 
year during which the business is certified as a qualified transformational business 
expansion project under Title 30-A, section 5250-J, subsection 4-D. For each of the 
11th to 20th years for which reimbursement is requested, the qualified 
transformational business expansion project is eligible for a reimbursement equal to 
50% of the Maine income tax withheld from each qualified employee.  
Reimbursement may not be paid pursuant to this paragraph for calendar years 
beginning after December 31, 2034.  As used in this paragraph, "qualified employee" 
has the same meaning as in Title 30-A, section 5250-J, subsection 4-D, paragraph A, 
subparagraph (5). 
SUMMARY 
The purpose of this bill is to improve Maine's overall competitiveness and ability to 
attract major private investment to the State by creating a mechanism for competing for 
major business expansion and creation projects, referred to as transformational business 
expansion projects, which are the construction, development, rehabilitation, expansion, 
modernization or acquisition of any building, structure, system, machinery, equipment or 
facility in a military redevelopment zone that has a projected cost of $25,000,000 or more 
and the operation of which is projected to result in a net gain of at least 500 job 
opportunities. An applicant who is certified by the Commissioner of Economic and 
Community Development as a transformational business expansion project is eligible for 
the following incentives and benefits: 
1.  A 20-year corporate income tax credit that includes a 100% credit for the first 10 
years that the project is in operation and a 50% credit for the next 10 years that the project 
is in operation; 
2.  A sales tax exemption and reimbursement for expenditures made for the project 
for up to 20 years; 
3.  An annual reimbursement for up to 5 years from the Efficiency Maine Trust for 
electric rates that exceed the national average industrial rate as determined by the United 
States Energy Information Administration and certified by the Public Utilities 
Commission; 
4.  Employment tax increment financing benefits for qualified investments.  The 
reimbursement is equal to 80% of Maine income tax withheld each year for which 
reimbursement is requested and attributed to qualified employees for a period of no more 
than 10 years.  For years of operation beginning after the 10th year until the 20th year, the 
certified applicant is eligible for a reimbursement of 50% of Maine income tax withheld 
each year for which reimbursement is requested.  This benefit expires after December 31, 
2034; 
5.  Access to a pool of up to $400,000,000 in loans and up to $100,000,000 in bond 
funding for transformational business expansion projects to provide long-term, credit-
enhanced financing at taxable bond rates.  Financing assistance for a single project may 
not exceed $400,000,000; 
6.  Access to workforce development assistance, training and recruitment by the 
Commissioner of Economic and Community Development and the Commissioner of 
Labor, who are required to work with agencies across State Government involved in 
employment or skill training to identify and marshal financial resources to help a 
transformational business expansion project recruit and train workers; and 
7.  Access to the benefits available under the Governor's Jobs Initiative Program, 
including access to funds from the Competitive Skills Scholarship Program. 
Additionally, this bill prohibits requiring a person, as a condition of employment or 
continuation of employment at a transformational business expansion project, to join a 
labor organization or pay any labor organization dues or fees and establishes, in a manner 
similar to laws governing the shipbuilding facility credit, a preference for Maine workers, 
companies and bidders as part of the contractual inducement for the qualified applicant to 
make a qualified investment and for the State to provide the incentives.