An Act To Create a Tax on the Production of Electricity from Wind Resources
Maine Legislature, Session 128, LD 1549
Committee: Taxation
Sponsors: STEARNS, DAVIS, GRIGNON, HIGGINS, STETKIS, WADSWORTH, SAVIELLO
Amends: 35-A MRSA §3405

Legislative Document
No. 1549
H.P. 1067
House of Representatives, April 27, 2017
An Act To Create a Tax on the Production of Electricity from Wind 
Resources
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative STEARNS of Guilford.
Cosponsored by Senator DAVIS of Piscataquis and
Representatives: GRIGNON of Athens, HIGGINS of Dover-Foxcroft, STETKIS of Canaan, 
WADSWORTH of Hiram, Senator: SAVIELLO of Franklin.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  35-A MRSA §3405 is enacted to read: 
§3405.  Wind Energy Impact Fund 
1.  Fund established.  The Wind Energy Impact Fund, referred to in this section as 
"the fund," is established for the purpose of compensating certain property owners for the 
impact of wind energy production.  The fund is administered by the commission. 
2.  Funding.  The fund consists of proceeds from the wind power excise tax 
transferred to the fund under Title 36, section 2751 and any other resources made 
available to the fund. 
3.  Use of the fund.  The commission shall identify the geographical areas affected 
by wind energy production subject to tax under Title 36, section 2751 and establish a 
process for distribution of revenues received from the tax to ratepayers in those affected 
areas through a credit against the costs of transmission and distribution of electricity to 
those ratepayers. 
Sec. 2.  36 MRSA c. 368 is enacted to read: 
CHAPTER 368 
WIND POWER EXCISE TAX 
§2751.  Tax on wind power 
1.  Definition of "wind energy producer."  As used in this chapter, unless the 
context otherwise indicates, "wind energy producer" means a person that is engaged in 
the business of using wind resources to produce electricity for sale or trade and that uses 
wind resources to produce at least 100 megawatt-hours of electricity per year for sale or 
trade. 
2.  Imposition.  Beginning January 1, 2018, a tax is imposed on a wind energy 
producer for the privilege of using wind power to produce electricity from wind resources 
for sale or trade.  The tax is calculated pursuant to subsection 4 on electricity as measured 
at the point of interconnection with an electric transmission line.  The tax is not imposed 
until 3 years after the turbine that produces the electricity first produced electricity for 
sale or trade regardless of whether the production of electricity began prior to January 1, 
2018. 
3.  Exclusion.  The tax is not imposed on the production of electricity at any facility 
that is owned or operated by the Federal Government, the State, a county or municipality 
in the State or any individual producing electricity from wind resources for that 
individual's personal use. 
4.  Rate of tax.  The tax is imposed at the rate of $1 per megawatt-hour of electricity 
produced from wind resources in this State. 
5.  Payment of tax.  A wind energy producer shall prepare and submit to the bureau 
by February 1st annually a return according to the procedures specified by the bureau 
showing the total megawatt-hours of electricity produced from wind resources in the 
preceding year and other information required by the bureau.  The tax imposed under this 
section must be paid at the time the return is submitted. 
6.  Records.  A wind energy producer shall keep a record of all electricity produced 
from wind resources in this State and make that record available for inspection by the 
assessor at all times. 
7.  Application of revenue.  Revenue from the tax imposed under this section must 
be deposited in the Wind Energy Impact Fund established in Title 35-A, section 3405. 
SUMMARY 
This bill creates an excise tax on wind energy producers for the privilege of using 
wind power to produce electricity from wind resources for sale or trade beginning 
January 1, 2018.  The tax is equal to $1 per megawatt-hour of electricity produced as 
measured at the point of interconnection with an electric transmission line.  The tax first 
applies 3 years after the turbines producing the electricity first begin operation.  The tax 
does not apply to the Federal Government, the State, a county or municipality in the State 
or any individual producing electricity from wind resources for that individual's personal 
use. 
Revenue from the tax is transferred to a newly created Wind Energy Impact Fund to 
be administered by the Public Utilities Commission.  The commission is required to 
establish a process for distribution of revenues to ratepayers in areas affected by the wind 
energy production that is subject to the tax.