An Act To Create a Credit under the Commercial Forestry Excise Tax for Landowners Using Businesses Based in the United States
Maine Legislature, Session 129, LD 0268
Committee: Taxation
Sponsors: JACKSON, TIPPING, CARPENTER, CHIPMAN, DAVIS, MARTIN, STANLEY
Amends: 36 MRSA §2729

Legislative Document
No. 268
S.P. 80
In Senate, January 22, 2019
An Act To Create a Credit under the Commercial Forestry Excise 
Tax for Landowners Using Businesses Based in the United States
Reference to the Committee on Taxation suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by President JACKSON of Aroostook.
Cosponsored by Representative TIPPING of Orono and
Senators: CARPENTER of Aroostook, CHIPMAN of Cumberland, DAVIS of Piscataquis, 
Representatives: MARTIN of Eagle Lake, STANLEY of Medway.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §2729 is enacted to read:
§2729.  Credit
1.  Credit.  An owner of commercial forest land subject to tax under this chapter is 
entitled to a credit equal to 100% of the taxes assessed under this chapter if the landowner 
meets the conditions specified under subsection 2.
2.  Conditions of eligibility.  To be eligible for a credit under this section, a 
landowner must:
A.  Be based in the United States;
B.  Demonstrate to the State Tax Assessor that all businesses, including forest road 
construction and trucking businesses, and contractors, including subcontractors, hired 
or retained by the landowner in the harvesting of timber on land subject to tax under 
this chapter are based in the United States and that the landowner has obtained from 
those businesses affidavits stating that at least 75% of the employees of those 
businesses are residents of the United States; and
C.  Require that all businesses employed by the landowner in the harvesting of timber 
on land subject to tax under this chapter, including contractors and subcontractors, 
are current in the payment of all taxes due the State or political subdivisions of the 
State, including, but not limited to, payroll taxes, unemployment taxes, personal 
property taxes and sales taxes.  This paragraph may not be construed to require a 
business employed by the landowner in the harvesting of timber to be assessed 
personal property taxes in order for the landowner to be eligible for the credit under 
this section.
For the purposes of this subsection, "based in the United States" means that a business 
maintains a bona fide place of business in the United States from which business 
operations in the United States are managed.
3.  Recapture.  If the State Tax Assessor finds, after a credit under this section has 
been granted, that the landowner claiming the credit did not meet the conditions required 
under subsection 2, the State Tax Assessor shall rescind the credit and shall recapture the 
credit granted by issuing a supplemental assessment against the landowner in accordance 
with section 141, subsection 1.
SUMMARY
This bill provides a credit against the commercial forestry excise tax for landowners 
who are based in the United States and who employ and retain businesses or contractors 
that are based in the United States, that employ at least 75% United States residents and 
that are current in the payment of all state and local taxes.  The bill also requires recapture 
of the credit if a recipient is found to have been ineligible.