An Act To Promote Major Food Processing and Manufacturing Facility Expansion and To Create Jobs in Maine
Maine Legislature, Session 129, LD 1586
Committee Amendment CA_A_S228 (Senate)
Amends: 36 MRSA §191, 36 MRSA §5219-V

FffiST REGULAR SESSION 
COMMITTEE AMENDMENT '\q " to S.P. 505, L.D. 1586, Bill, "An Act To 
Promote Major Food Processing and Manufacturing Facility Expansion and To Create 
Jobs in Maine" 
Amend the bill by striking out everything after the title and inserting the following: 
'Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, food processing and manufacturing facilities based in Maine create 
employment opportunities and generate significant economic growth; and 
Whereas, there is an immediate need for greater employment opportunities and 
economic growth in the food processing and manufacturing industry; and 
Whereas, investment in new food processing and manufacturing facilities is not 
likely to occur without the incentives provided in this legislation; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA §191, sub-§2, 1,iHHH and III are enacted to read: 
HRH. The disclosure to the joint standing committee of the Legislature having 
jurisdiction over taxation matters pursuant to section 5219-VV, 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 food processing and 
manufacturing facility expansion provided under that section, regardless of the 
number of persons eligible for the credit. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT"/," to S.P. 505, L.D. 1586 · 
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III. The disclosure of information to the Department of Economic and Community 
Development necessary for the administration of the tax credit for major food 
processing and manufacturing facility expansion pursuant to section 5219-VV. 
Sec. 2. 36 MRSA §5219-VV is enacted to read: 
§5219-VV. Credit for major food processing and manufacturing facility expansion 
1. Definitions. As used in this section, unless the context otheiwise indicates, the 
following terms have the following meanings. 
A. "Base level of employment" means the greater of: 
(1) The total employment of a qualified applicant as of the March 31st, June 
30th, September 30th and December 31st immediately preceding the application 
for a certificate of approval under subsection 2 divided by 4; and 
(2) The qualified applicant's average employment during the base period. 
B. "Base period" means the 3 calendar years prior to the year in which a qualified 
applicant's application for a certificate of approval under subsection 2 is approved by 
the commissioner. 
C. "Certified applicant" means a qualified applicant that has received a certificate of 
approval from the commissioner pursuant to this section. 
D. 
"Commissioner" means the Commissioner of Economic and Community 
Development. 
E. 
"Employees based in the State" means employees that perform 100% of 
employee-related activities for the employer at the facility in the State. 
F. 
"Facility" means a food processing and manufacturing facility, plant or mill, 
including one or more structures and including the equipment, machinery, fixtures 
and personal property located in, on, over, under and adjacent to those structures, by 
which the applicant, as determined by the commissioner at the time of application, 
processes, produces and manufactures food from agricultural products primarily 
grown and harvested in the State. 
G. "Full-time" means an average of at least 36 hours weekly during the period of 
measurement. 
H. 
"Headquarters" means the principal office from which a qualified applicant 
directs its national or global business activities, as determined by the commissioner at 
the time of application. 
I. "Primarily grown and harvested in the State" means that not less than 95% of the 
agricultural products processed in the facility are grown and harvested in the State, 
except when such products are not reasonably available by reason of an act of God, 
pestilence, weather or other factors beyond the reasonable control of the applicant or 
applicant's suppliers. 
J. "Qualified applicant" means an applicant that, at the time an application for a 
certificate of approval is submitted, is itself, or is the parent or subsidiary of, an entity 
that satisfies all of the following criteria: 
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COMMITTEE AMENDMENT" f~ "to S.P. 505, L.D. 1586 ( C, -
(1) The applicant's headquarters are, and have been for each of the last 5 years 
prior to application for a certificate of approval, located in the State; 
(2) The applicant intends to make a qualified investment in the State within 5 
years following the date of the application; 
(3) Construction of the applicant's facility begins no sooner than April 1, 2019 as 
evidenced by the date of issuance of an appropriate municipal building permit; 
(4) The applicant employs or will employ upon start-up of the facility at least 40 
full-time employees based in the State; and 
(5) The annual income derived from employment with the applicant of at least 
75% of the applicant's employees exceeds the most recent annual per capita 
personal income in the county in which the facility is located. 
K. "Qualified investment" means an investment of at least $35,000,000 to design, 
permit, construct, modify, equip or expand the applicant's facility in the State. The 
investments and activities of a qualified applicant and other entities that are members 
of the qualified applicant's unitary business may be aggregated to determine whether 
a qualified investment has been made. A qualified investment does not include an 
investment made prior to April 1, 2019 or after December 31, 2024. 
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 of receipt 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. 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 
completion under paragraph E, that certificate of completion to another person. A 
ce1iificate 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 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" ! - "to S.P. 505, L.D. 1586 
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(2) The commissioner finds that the transferee will. and has the capacity to, 
maintain operations of the facility 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. 
D. The commissioner shall revoke a certificate of approval if the certified applicant 
or a person to whom a certificate of approval has been transferred pursuant to 
paragraph C 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 under paragraph E if the applicant or transferee ceases 
operations of the facility 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 C. A certified applicant whose certificate of completion is 
revoked within 5 years after the date issued shall return within 60 days following 
revocation of the certificate to the State an amount equal to the total credits claimed 
for all tax years 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 return within 60 days following revocation of the 
certificate 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. The amount to be returned to the State under this paragraph is. for purposes 
of this Title, a tax subject to the collection and enforcement provisions contained in 
Part 1. including the application of applicable interest and penalties. The amount to 
be returned to the State must be added to the tax imposed on the taxpayer under this 
Part for the taxable year during which the certificate is revoked. 
E. 
A certified applicant shall submit an application to the commissioner for a 
certificate of completion. If the commissioner determines that the certified applicant 
has made a qualified investment and satisfied the facility and employment criteria in 
subsection 1. paragraph J, the commissioner shall issue a certificate of completion to 
the certified applicant as soon as is practical. The certificate of completion must state 
the amount of qualified investment made by the certified applicant. 
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 $85,000,000 of qualified investment. 
3. Refundable credit allowed. A certified applicant is allowed a credit as provided 
in this subsection. 
A. Subject to the limitations under paragraph B. beginning with the first full tax year 
after the certified applicant has been issued a certificate of completion under 
subsection 2, paragraph E or the tax year beginning on January 1. 2022, whichever is 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" /\" to S.P. 505, L.D. 1586 ( 
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 
1.8% of the certified applicant's qualified investment. If the certified applicant is a 
pass-through entity, the owner or owners of the certified applicant are allowed the 
credit. 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 3 tax years for which the credit is claimed, there 
must be a total of at least 40 full-time employees based in the State above the 
certified applicant's base level of employment whose jobs were added since 
the first day of the first tax year for which the credit was claimed. 
(b) For each tax year after the 3rd tax year for which the credit is claimed, 
the taxpayer must employ a total of at least 60 full-time employees based in 
the State above the certified applicant's base level of employment 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 under subsection 2, 
paragraph E may not be counted for determining eligibility for the credit under a 
separate certificate of completion. For purposes of this subparagraph, "additional 
full-time employees" does not include employees who are shifted to a certified 
applicant's facility in the State from an affiliated business in the State. The 
commissioner shall determine whether a shifting of employees has occurred. For 
purposes of this subparagraph, "affiliated business" has the same meaning as in 
section 6753, subsection 1-A. 
(2) A credit is not allowed for any tax year following 2 consecutive tax years 
during which the certified applicant did not have between $5,500,000 and 
$12,000,000 in ordinary business income. 
(3) Cumulative credits under this subsection may not exceed $34,000,000 under 
any one certificate. 
4. Appeals. The applicant or certified applicant may appeal in accordance with Title 
5, chapter 375, subchapter 7 any determination, action or failure to act by the 
commissioner under this section. 
5. Reporting required. A certified applicant, the commissioner and the assessor are 
7 
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: 
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COMMITTEE AMENDMENT" , "to S.P. 505, L.D. 1586 .·· 
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(1) 
The number of full-time employees based in the State of the certified 
applicant on the last day of the tax year ending during the calendar year 
immediately preceding the report year; and 
(2) The incremental amount of qualified investment made in the report year. 
The commissioner may prescribe forms for the annual report described in this 
paragraph. The commissioner shall provide copies of the report to the assessor, to the 
Office of Program Evaluation and Government Accountability and to the joint 
standing committee of the Legislature having jurisdiction over taxation matters at the 
time the report is received. 
B. By April 1st of each year, the commissioner shall report to the Office of Program 
Evaluation and Government Accountability and 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 that the 
certified applicant claimed a credit under this section, and the assessor shall report to 
the Office of Program Evaluation and Government Accountability and 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 provision of law to the contrary, the reports provided under this 
subsection are public records as defined in Title 1, section 402, subsection 3. 
6. Rulemaking. The commissioner may adopt routine technical rules as defmed in 
Title 5, chapter 375, subchapter 2-A to implement this section. 
7. Evaluation; specific public policy objectives; performance measures. The 
credit provided under this section is subject to ongoing legislative review in accordance 
with Title 3, chapter 37. 
The Office of Program Evaluation and Government 
Accountability shall submit an evaluation of the credit provided under this section to the 
joint legislative committee established to oversee program evaluation and government 
accountability and the joint standing committee of the Legislature having jurisdiction 
over taxation matters. In developing evaluation parameters to perform the review, the 
office shall consider: 
A. That the specific public policy objectives of the credit provided under this section 
are: 
(1) To create high-quality jobs in the State by encouraging major businesses to 
locate or expand their food processing and manufacturing facilities in this State 
and to encourage the recruitment and training of employees for these facilities; 
and 
(2) To directly and indirectly improve the overall economy of the State including 
the agricultural economy, small businesses, employment in rural areas and 
expansion of the tax base; and 
B. Performance measures, including, but not limited to: 
(1) The number, geographic distribution and income of full-time employees 
added or retained during a period being reviewed who would not have been 
added or retained in the absence of the credit; 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" fl" to S.P. 505, L.D. 1586 
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(2) 
The number and amount of qualified investments made by certified 
applicants during the review period: 
(3) The increase in value in agricultural products produced in the State; and 
(4) Direct and indirect economic benefits to the State attributable to qualified 
investments entitled to a credit under this section. 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment adds an emergency preamble and an emergency clause to the bill. It 
also adds provisions to facilitate administration of the credit and the review of the credit 
by the Office of Program Evaluation and Governmental Accountability under the tax 
expenditure review laws. 
J'ISCAL i>itHf. R£QUIU:D 
(See attaebed) 
COMMITTEE AMENDMENT 
Approved: 05/31/19 feae! 
\1) 
LD 1586 
LR 1147(02) 
An Act To Promote Major Food Processing and Manufacturing Facility Expansion and To Create 
Jobs in Maine 
Fiscal Note for Bill as Amended by Committee Amendment "/\" c 
Committee: Taxation 
Net Cost (Savings) 
General Fund 
Appropriations/ Allocations 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY2019-20 
$0 
$0 
$0 
$0 
FY 2020-21 
$0 
$0 
$0 
$0 
Projections 
FY 2021-22 
$33,000 
$33,000 
$0 
$0 
:)l~} 
Projections 
FY 2022-23 
$1,111,500 
$0 
($1,111,500) 
($58,500) 
The bill creates an income tax credit for major food processing and manufacturing facilities and will reduce General 
Fund revenue by $1,111,500 in fiscal year 2022-23 and reduce Local Government Fund revenue by $58,500 in fiscal 
year 2022-23. The Department of Administrative and Financial Services will require a General Fund appropriation of 
$33,000 in fiscal year 2022-23 for computer programming costs to update corporate income tax forms. 
Additional costs to the Department of Economic and Community Development to implement the requirements of this 
legislation can be absorbed within existing budgeted resources. 
LR! 147(02) - Fiscal Note - Page I of I