An Act To Restore the Super Credit for Substantially Increased Research and Development
Maine Legislature, Session 129, LD 0977
Committee Amendment CA_A_H621 (House)
Amends: 5 MRSA §13070-J, 36 MRSA §5219-L

COMMITTEE AMENDMENT "A" to H.P. 732, L.D. 977, Bill, "An Act To 
Restore the Super Credit for Substantially Increased Research and Development" 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 5 MRSA §13070-J, sub-§2-A, ~' as enacted by PL 2017, c. 264, §10, 
is amended to read: 
B. 
To assist the department in preparing the comprehensive evaluation of state 
investments in economic development pursuant to section 13070-P, subsection 1 and 
to facilitate the evaluation of tax expenditures under Title 3. chapter 37, a recipient of 
state funding for research and development activities or economic development 
incentives, including General Fund appropriations, dedicated revenue, tax 
expenditures as defined in section 1666 and general obligation bond proceeds for 
economic development, shall, in addition to any other reporting requirements 
required by law, collect, maintain and provide data as requested by the department;,,. 
including. but not limited to: 
(1) 
The amount received by the recipient in the preceding year from each 
economic development incentive: 
(2) The total amount received by the recipient from all economic development 
incentives and economic development programs: 
(3) The number. type and wage levels of jobs created or retained in each county 
by the recipient as a result of each economic development incentive: 
( 4) Current employment levels for the recipient for all operations within the 
State: 
(5) Any changes in the recipient's employment levels in the State that have 
occurred over the preceding year: 
( 6) Investments made in the State by the recipient over the preceding year: and 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ,/J "to H.P. 732, L.D. 977 
(7) Intellectual property that has been secured by the recipient, including, but not 
limited to, patents, trade secrets, copyrights, trademarks or other intellectual 
property as defined by the department by rule. 
The department shall provide information obtained under this paragraph by January 
15th annually to the Office of Program Evaluation and Government Accountability 
for the purposes of evaluation of tax expenditures under Title 3, chapter 37 and, to the 
extent permitted under confidentiality requirements, to the joint standing committee 
of the Legislature having jurisdiction over taxation matters. 
Sec. 2. 36 MRSA §5219-L, sub-§1, as amended by PL 2013, c. 502, Pt. J, §1 and 
affected by §3, is further amended to read: 
1. Super credit allowed for substantial expansions of research and devefopment. 
For tax years beginning before January 1, 2014, a taxpayer that qualifies for the research 
expense tax credit allowed under section 5219-K is allowed an additional credit against 
the tax due under this Part equal to the excess, if any, of qualified research expenses for 
the taxable year over the super credit base amount. 
For purposes of this seetion 
subsection, "super credit base amount" means the average amount spent on qualified 
research expenses by the taxpayer in the 3 taxable years immediately preceding the 
effeetr;e date of thls section June 12, 1997, increased by 50%. For purposes of this 
section, "qualified research expenses" has the same meaning as under the Code, Section 
but applies only to expenditures for research conducted in this State. 
Sec. 3. 36 MRSA §5219-L, sub-§1-A is enacted to read: 
1-A. Super credit allowed for tax years beginning on or after January 1, 2019. 
For tax years beginning on or after January 1, 2019, a taxpayer that qualifies for the 
research expense tax credit allowed under section 5219-K is allowed an additional credit 
against the tax due under this Part equal to the excess, if any, of qualified research 
expenses for the taxable year over the super credit base amount. For purposes of this 
subsection, "super credit base amount" means the greater of: 
A. The average annual amount spent on qualified research expenses by the taxpayer 
in the 3 taxable years immediately preceding the tax year for which the credit is 
generated: and 
B. The average annual amount spent on qualified research expenses by the taxpayer 
in the 3 taxable years immediately preceding October 1, 2019. 
For purposes of this subsection, "qualified research expenses" has the same meaning as 
under the Code, Section 41 but applies only to expenditures for research conducted in this 
State. 
Sec. 4. 36 MRSA §5219-L, sub-§2, as enacted by PL 1997, c. 557, Pt. B, §10 
and affected by § 14 and Pt. G, § 1, is amended to read: 
2. Amount of super credit allowed. The credit allowed under this section is limited 
to 50% of the taxpayer's tax due after the allowance of any other credits taken pursuant to 
this chapter except that, for tax years beginning on or after January 1, 2019, the credit 
allowed under this section is limited to 25% of the taxpayer's tax due after the allowance 
of any other credits taken pursuant to this chapter. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to H.P. 732, L.D. 977 
Sec. 5. 36 MRSA §5219-L, sub-§6 is enacted to read: 
6. 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. In developing evaluation parameters to perform the review. the 
Office of Program Evaluation and Government Accountability 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 investments in 
research and development in this State and to encourage the recruitment and 
training of employees; and 
(2) To directly and indirectly improve the overall economy of the State by 
expanding the number of businesses conducting and investing in research and 
development in the State; and 
B. Performance measures, including. but not limited to: 
(1) The number, geographic distribution and income of full-time employees 
added or retained during the period being reviewed who would not have been 
added or retained in the absence of the credit: 
(2) The number and amount of investments in research and development made 
by credit recipients during the review period; and 
(3) Direct and indirect improvement in the economy of the State attributable to 
activities entitled to a credit under this section.' 
SUMMARY 
This amendment restores the super credit for substantially increased research and 
development for tax years beginning on or after January 1, 2019. The amendment also 
provides reporting and evaluation requirements to permit evaluation of the credit in 
meeting its intended purposes. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 06/12/19 ;wac. 
LD977 
LR 422(02) 
An Act To Restore the Super Credit for Substantially Increased Research and Development 
Fiscal Note for Bill as Amended by Committee Amendment fi· {//~,).I) 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Projections 
Projections 
FY2019-20 
FY2020-21 
FY2021-22 
FY2022-23 
Net Cost (Savings) 
General Fund 
$836,000 
$893,000 
$1,016,500 
$1,111,500 
Revenue 
General Fund 
($836,000) 
($893,000) 
($1,016,500) 
($1,111,500) 
Other Special Revenue Funds 
($44,000) 
($47,000) 
($53,500) 
($58,500) 
Fiscal Detail and Notes 
The bill restores the super credit for research and development expenses and would result in a reduction in Gener.al 
Fund revenue of$836,000 in fiscal year 2019-20 and $893,000 in fiscal year 2020-21. It would also result in a 
reduction in Local Government Fund revenue of $44, 000 in fiscal year 2019-20 and $4 7 ,000 in fiscal year 2020-21. 
Additional costs to the Department of Economic and Community Development to provide the required information to 
the Office of Program Evaluation and Government Accountability can be absorbed within existing budgeted 
resources. 
LR0422(02) - Fiscal Note - Page 1 of 1