An Act To Promote Major Business Headquarters Expansions in Maine, Promote the Commercialization of Research and Development in Maine and Create Jobs
Maine Legislature, Session 128, LD 1639
Committee Amendment CA_A_S294 (Senate)
Amends: 36 MRSA §191, 36 MRSA §5219-Q

COMMITTEE AMENDMENT "A " to S.P. 591, L.D. 1639, Bill, "An Act To 
Promote 
Major 
Business 
Headquarters 
Expansions 
in 
Maine, 
Promote 
the 
Commercialization of Research and Development in Maine and Create Jobs" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 36 MRSA §191, sub-§2, ~DD is enacted to read: 
DDD. The disclosure to the joint standing committee of the Legislature having 
jurisdiction over taxation matters pursuant to section 5219-00, subsection 4, 
paragraph B of the revenue loss, including the loss due to refundable credits, 
attributable to each taxpayer claiming the tax credit for major business headquarters 
expansions provided under that section, regardless of the number of persons eligible 
for the credit. 
Sec. 2. 36 MRSA §5219-QQ is enacted to read: 
§5219-00. Credit for major business headquarters expansions 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Certified applicant" means a qualified applicant that has received a certificate of 
approval from the commissioner pursuant to this section. 
B. 
"Commissioner" means the Commissioner of Economic and Community 
Development. 
C. "Employees based in the State" means employees that perform more than 50% of 
employee-related activities for the employer at the headquarters in the State. 
D. 
"Facility" means one or more buildings and includes the real and personal 
property located in those buildings. 
E. 
"Full-time" means an average of 36 hours weekly during the period of 
measurement. 
Page I - 128LR2369(02)-1 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 591, L.D. 1639 
F. "Headquarters" means the principal facility from which the applicant directs its 
national or global business activities, as determined by the commissioner at the time 
of application. 
G. "Qualified applicant" means an applicant that, at the time an application for a 
certificate of approval is submitted, satisfies all of the following criteria: 
( 1) The applicant's headquarters are or will be located in the State; 
(2) The applicant employs at least 5,000 full-time employees worldwide of 
which at least 25% are or will be based in this State; 
(3) The applicant has business locations in at least 3 other states or foreign 
countries; and 
( 4) The applicant intends to make a qualified investment in the State within 5 
years following the date of the application. 
H. "Qualified investment" means an investment of at least $35,000,000 to design, 
pennit, construct, modify, equip or expand the applicant's headquarters in the State. 
The investments and activities of a qualified applicant and other entities that are 
members of the qualified applicant's unitary business must be aggregated to 
determine whether a qualified investment has been made. A qualified investment 
does not include an investment made prior to the issuance of a certificate of approval 
or after December 31, 2022. 
2. Procedures for application; certificate of approval. The provisions of this 
subsection govern the procedures for providing for and obtaining a certificate of 
approval. 
A. A qualified applicant may apply to the commissioner for a certificate of approval. 
An applicant shall submit to the commissioner information demonstrating that the 
applicant is a qualified applicant. If a certified applicant undertakes to make an 
additional qualified investment, the certified applicant may apply to the 
commissioner for an additional certificate of approval. 
B. The commissioner, within 30 days ofreceipt of an application submitted pursuant 
to paragraph A, shall determine whether the applicant is a qualified applicant and 
shall issue either a certificate of approval or a written denial indicating why the 
applicant is not qualified. The certificate issued by the commissioner must describe 
the qualified investment and specify the total amount of qualified investment 
approved under the certificate. 
C. Upon issuance of a certificate of completion in accordance with paragraph F, the 
commissioner shall issue, on behalf of the State, a memorandum to the qualified 
applicant describing the benefits provided by this section at the time the certificate of 
completion is issued. The memorandum must provide that the certificate of 
8 
completion does not prohibit the commissioner from revoking a certificate in 
accordance with paragraph E and does not prohibit the assessor from assessing and 
collecting an overpaid benefit in accordance with the provisions of this Title. 
D. A certified applicant shall obtain approval from the commissioner to transfer the 
certificate of approval or, if the certified applicant has obtained a certificate of 
COMMITTEE AMENDMENT 
ROFS 
COMMITTEE AMENDMENT ''(A" to S.P. 591, L.D. 1639 
completion, that certificate of completion to another person. A certificate of approval 
or certificate of completion may be transferred only if all or substantially all of the 
assets of the certified applicant are, or will be, transferred to that person or if 50% or 
more of the certified applicant's voting stock is, or will be, acquired by that person. 
The commissioner shall approve the transfer of the certificate of approval or the 
certificate of completion only if at least one of the following conditions is satisfied: 
(1) The transferee is a member of the applicant's unitary affiliated group at the 
time of the transfer; or 
(2) The commissioner finds that the transferee will, and has the capacity to, 
maintain operations of the headquarters in the State in a manner that meets the 
minimum qualifications for continued eligibility of benefits under this section 
after the transfer occurs. 
If the commissioner approves the transfer of the certificate, the transferee, from the 
date of the transfer, must be treated as the certified applicant and as eligible to claim 
any remaining benefit under the certificate of approval or the certificate of 
completion that has not been previously claimed by the transferor as long as the 
transferee meets the same eligibility requirements and conditions for the credit as 
applied to the original certified applicant. 
E. The commissioner must revoke a certificate of approval if the certified applicant 
or a person to whom a certificate of approval has been transferred pursuant to 
paragraph D fails to make a qualified investment within 5 years of the date of the 
certificate of approval. The commissioner shall revoke a certificate of approval or a 
certificate of completion if the applicant ceases operations of the headquarters in the 
State or the certificate of approval or certificate of completion is transferred to 
another person without approval from the commissioner pursuant to paragraph D. A 
certified applicant whose certificate of completion is revoked within 5 years after the 
date issued shall within 60 days following revocation of the certificate return to the 
State an amount equal to the total credits claimed under this section. A certified 
applicant whose certificate of completion is revoked during the period from 6 years 
after through 10 years after the date the certificate was issued shall within 60 days 
following revocation of the certificate return to the State an amount equal to the total 
credits claimed under this section for the period from 6 years after through 10 years 
after the date the certificate was issued. 
F. Upon making the qualified investment and completing the headquarters and 
employment criteria in subsection 1, paragraph H, a certified applicant shall submit 
an application to the commissioner for a certificate of completion. 
If the 
commissioner determines that a qualified investment has been made, the applicant's 
headquarters is located in the State and at least 25% of the applicant's full-time 
9 
employees, as measured at the time of application for the certificate of approval, are 
based in the State, the commissioner shall issue a certificate of completion to the 
certified applicant as soon as is practical. 
The commissioner may not issue certificates of approval under this subsection that total, 
in the aggregate, more than $100,000,000 of qualified investment or any individual 
certificate of approval for more than $40,000,000 of qualified investment. 
COMMITTEE AMENDMENT 
COMMITIEE AMENDMENT" A" to S.P. 591, L.D. 1639 
3. Refundable credit allowed. A qualified applicant is allowed a credit as provided 
in this subsection. 
A. Subject to the limitations under paragraph B, beginning with the tax year during 
which the certificate of completion is issued or the tax year beginning in 2020, 
whichever is later, and for each of the following 19 tax years, a certified applicant is 
allowed a credit against the tax due under this Part for the taxable year in an amount 
equal to 2% of the certified applicant's qualified investment. The credit allowed 
under this paragraph is refundable. 
B. The credit under this subsection is limited as follows: 
(1) A credit is not allowed for any tax year during which the taxpayer does not 
meet or exceed the following employment targets as measured on the last day of 
the tax year. 
(a) For each of the first 10 tax years for which the credit is claimed, there 
must be a total of at least 80 additional full-time employees based in the State 
whose jobs were added since the first day of the first tax year for which the 
credit was claimed multiplied by the number of years for which the credit has 
been claimed. 
(b) For each tax year after the 10th tax year for which the credit is claimed, 
the taxpayer must employ a total of at least 800 additional full-time 
employees based in the State whose jobs were added since the first day of the 
first tax year for which the credit was claimed. 
Jobs for additional full-time employees that are counted for determining 
eligibility for the credit under one certificate of completion may not be counted 
for determining eligibility for the credit under a separate certificate of 
completion. 
(2) Cumulative credits under this subsection may not exceed $16,000,000 under 
any one certificate. 
4. Reporting required. A certified applicant and the commissioner are required to 
make reports pursuant to this subsection. 
A. On or before March 1st of each year, a certified applicant shall file a report with 
the commissioner for the tax year ending during the immediately preceding calendar 
year, referred to in this paragraph as "the report year." containing the following 
information: 
(1) 
The number of full-time employees based in this State of the certified 
5 
applicant on the last day of the tax year ending during the calendar year 
immediately preceding the report year; and 
7 
(2) The incremental amount of qualified investment made in the report year. 
8 
The commissioner may prescribe forms for the annual report described in this 
paragraph. The commissioner shall provide copies of the report to the State Tax 
Assessor and to the joint standing committee of the Legislature having jurisdiction 
over taxation matters at the time the report is received. 
COMMITTEE AMENDMENT 
OFS 
COMMITTEE AMENDMENT" A" to S.P. 591, L.D. 1639 
B. By April 1st of each year, the commissioner shall report to the joint standing 
committee of the Legislature having jurisdiction over taxation matters aggregate data 
on employment levels and qualified investment amounts of certified applicants for 
each year, and the State Tax Assessor shall report to the committee the revenue loss 
during the previous calendar year, including the loss due to refundable credits, as a 
result of this section for each taxpayer claiming the credit. 
Notwithstanding any other provision of law to the contrary, the reports provided under 
this subsection are public records as defined in Title l, section 402, subsection 3. 
Sec. 3. Credit design evaluation. By February 28, 2018, the Office of Program 
Evaluation and Government Accountability, referred to in this section as "the office," 
shall complete and submit to the Joint Standing Committee on Taxation and the 
Government Oversight Committee a tax expenditure design evaluation review of the 
credit for major business headquarters expansions established under the Maine Revised 
Statutes, Title 36, section 5219-QQ, referred to in this section as "the tax expenditure." 
The review must include an assessment of: 
1. The extent to which the design of the tax expenditure supports accomplishment of 
the tax expenditure's purposes, intent and goals; 
2. The extent to which the design of the tax expenditure directs benefits to the 
intended beneficiaries; and 
3. 
The extent to which the State's current or planned administration of the tax 
expenditure, including enforcement efforts, is efficient and effective. 
The office shall include with the review recommended performance measures appropriate 
for analyzing the evaluation objectives established for full evaluations under Title 3, 
section 999, subsection 1, paragraph A and make recommendations regarding data that 
would be necessary to perform the analyses. The Joint Standing Committee on Taxation 
may submit a bill to the Second Regular Session of the 128th Legislature regarding the 
credit for major business headquarters expansions. 
Sec. 4. Legislative findings, purpose. The Legislature finds that it is in the best 
interest of the people of the State of Maine to encourage the location and expansion of 
major business headquarters in the State and to encourage the recruitment and training of 
employees for these facilities. The Legislature further finds that the location and 
expansion of major business headquarters in Maine will create jobs, benefit small 
businesses that supply goods and services to the major business headquarters and its 
employees, increase the tax base and provide many other direct and indirect economic 
5 
benefits to the State. 
The purpose of this credit is to create high-quality jobs in the State by encouraging 
major businesses to locate their headquarters in this State or to expand their headquarters 
8 
in the State.' 
SUMMARY 
This amendment makes the following changes to the bill. 
COMMITTEE AMENDMENT 
OFS 
COMMITTEE AMENDMENT "A "to S.P. 591, L.D. 1639 
1. It removes provisions authorizing a taxpayer receiving the headquarters credit to 
have any unused credit carry-forward for the research expense tax credit, super credit for 
substantial expansions of research and development, jobs and investment tax credit and 
Maine capital investment credit be made refundable for any tax year to the extent of the 
headquarters credit. 
2. It removes from consideration as qualified investments expenditures for employee 
training and education and payment of student loan debt. 
3. It provides that no credit may be claimed in any year in which employment targets 
are not met. During the first 10 tax years for which the credit is claimed, the employment 
target is a rolling average of 80 new full-time Maine jobs added per year. In the first year 
of the credit, the 80 new jobs may include employees added since the first day of the tax 
year to account for the fact that the certificate of completion may be granted late in the 
tax year. In years 11 through 20 of the credit, the employment target requires that the 800 
jobs created in years 1 through 10 be sustained. The amendment also provides that new 
jobs may not be counted to establish eligibility under more than one certificate of 
completion. 
4. It provides that if the certificate of completion is transferred the transferee must 
meet the same eligibility requirements and conditions as applied to the original certified 
applicant. 
5. It provides that reports by the taxpayer and the State Tax Assessor are public 
records and provides that the State Tax Assessor must disclose information regarding 
credits received to the joint standing committee of the Legislature having jurisdiction 
over taxation matters. 
6. It requires the Office of Program Evaluation and Government Accountability to 
complete a design evaluation review of the credit, identifying the extent to which the 
design of the credit supports the accomplishment of the credit's purposes, intent and 
goals, the extent to which benefits are directed to the intended beneficiaries and the extent 
to which the administration of the credit is efficient and effective. The office is directed to 
include with its evaluation recommended performance measures for the credit and an 
identification of the data needed for effective evaluation. 
7. It provides that the purpose of the credit is to create high-quality jobs in the State 
by encouraging the location or expansion of the headquarters of major businesses in the 
State. 
8. It makes technical corrections. 
FISCAL NOTE REQl!IRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 06/19/17 feac;. 
LD 1639 
LR 2369(02) 
An Act To Promote Major Business Headquarters Expansions in Maine, Promote the 
Commercialization of Research and Development in Maine and Create Jobs 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Fiscal Note for Bill as Amended by Committee Amendment 'A' cs-;) q y.) 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2017-18 
FY 2018-19 
$0 
$0 
Projections 
FY 2019-20 
$0 
Projections 
FY 2020-21 
$760,000 
Other Special Revenue Funds 
$0 
$0 
$0 
$0 
$0 
$0 
($760,000) 
($40,000) 
Fiscal Detail and Notes 
The bill creates a refundable income tax credit for construction or expansion of major business headquarters and 
would result in a loss of General Fund revenue of $760,000 in fiscal year 2020-21 and a loss of Local Government 
Fund revenue of $40,000 in fiscal year 2020-21. 
Additional costs to the Department of Economic and Community Development associated with implementing the 
provisions of this legislation can be absorbed within existing budgeted resources. 
LR2369(02) - Fiscal Note - Page I of I