An Act To
Maine Legislature, Session 129, LD 2047
Committee Amendment CA_A_H766 (House)
Amends: 36 MRSA §5231, 36 MRSA §5219-V, 36 MRSA §5122, 36 MRSA §5200-A, 30-A MRSA §4722, 36 MRSA §5219-B

COMMITTEE AMENDMENT "A " to H.P. 1458, L.D. 2047, Bill, "An Act To 
Amend the State Tax Laws" 
Amend the bill in Part Din section 6 in §185-A in subsection 1 in the 5th and 6th 
lines (page 5, lines 34 and 35 in L.D.) by striking out the following: "any refund to which 
the person is entitled under this Title" and inserting the following: 'any amount due to the 
person under this Title, except for amounts due to that person under Part 2 of this Title' 
Amend the bill in Part Din section 6 in §185-A in subsection 5 in the first 2 lines 
(page 6, lines 19 and 20 in L.D.) by striking out the following: "pursuant to this section as 
to the existence of a liquidated debt" and inserting the following: 'in a hearing pursuant to 
subsection 2' 
Amend the bill in Part Gin section 1 in the last line (page 11, line 35 in L.D.) by 
striking out the following: "granted the taxpayer" 
Amend the bill in Part G by striking out all of section 2 and inserting the following: 
'Sec. G-2. 36 MRSA §5231, sub-§1-A, as amended by PL 2017, c. 211, Pt. D, 
§11, is further amended to read: 
1-A. Federal extension. When an individual, estate or trust is granted an extension 
of time within which to file a federal income tax return for any taxable year, the due date 
for filmg an extension to file the taxpayer's income tax return with respect to the tax 
imposed by this Part is automatically eKteB:ded granted for an equivalent period from the 
date prescribed for filing the return. When a taxable corporation or a fmancial institution 
subject to the tax imposed by chapter 819 is granted an extension of time within which to 
file its federal income tax return for any taxable year, the due date for filing an extension 
to file the taxpayer's income tax or franchise tax return with respect to the tax imposed by 
this Part is automatically eKte:aded granted for an equivalent period from the date 
prescribed for filing the return.' 
Amend the bill by striking out all of Part H. 
Amend the bill by striking out all of Part I and inserting the following: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to H.P. 1458, L.D. 2047 
R@FS 
'PART I 
Sec. I-1. 36 MRSA §5219-VV, sub-§1, ~' as enacted by PL 2019, c. 386, §2, 
is amended to read: 
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. 
Sec. I-2. 36 MRSA §5219-VV, sub-§1, 1K, as enacted by PL 2019, c. 386, §2, 
is amended to read: 
K. "Qualified investment" means an mvestmeBt expenditure of at least $35,000,000 
to design, permit, construct, modify, equip or expand the applicant's facility in the 
State. The mv:estments aad aetivities expenditures of a qualified applicant and other 
entities that are l'Iiembers of the qealified lij)J3lieant's l:lH.itary busi:liess may, whether or 
not incorporated. that are part of a single business enterprise must be aggregated to 
determine whether a qualified investment has been made. A qualified investment 
does not include an mvestment expenditure made prior to April 1, 2019 or after 
December 31, 2024. 
Sec. 1-3. 36 MRSA §5219-VV, sub-§2, ,iD, as enacted by PL 2019, c. 386, §2, 
is amended to read: 
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 followiH-g 
re:J,rocation of the eertificate 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 withm 60 days following rtV.•ocation. 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. An applicant whose 
certificate of approval or certificate of completion has been revoked pursuant to this 
paragraph is not eligible for the tax credit under this section for the tax year in which 
the certificate is revoked and any year after that. 
COMMITTEE AMENDMENT 
ROFS 
COMMITTEE AMENDMENT "A" to H.P. 1458, L.D. 2047 
Sec. 1-4. 36 MRSA §5219-VV, sub-§2, ~' as enacted by PL 2019, c. 386, §2, 
is amended to read: 
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 faeility aB:d employment determines 
that. at the time the application for a certificate of completion is submitted. the 
certified applicant is itself. or is the parent or subsidiary of, an entity that satisfies all 
of the criteria in subsection 1, paragraph J, subparagraphs (1) and (5), 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. 
Sec. 1-5. 36 MRSA §5219-VV, sub-§3, 1-8, as enacted by PL 2019, c. 386, §2, 
is amended to read: 
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 fa½' in which the eredit was elaimed 
certificate of a1;mroval was issued. 
(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 fast tax year fa½' in which the eredit was 
elaimed certificate of approval was issued. 
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 
$30,600,000 under any one certificate. 
COMMITTEE AMENDMENT 
ROFS 
COMMITTEE AMENDMENT "fi" to H.P. 1458, L.D. 2047 
( 4) A credit is not allowed for any tax year during which the certified applicant 
does not satisfy all of the following criteria: 
(a) The certified applicant's headquarters are located in the State; 
(b) The certified applicant has a facility in the State: and 
(c) The annual income derived from employment with the certified applicant 
of at least 75% of the certified applicant's employees exceeds the most recent 
annual per capita personal income in the county in which the facility is 
located. 
For purposes of this subparagraph, "certified applicant" includes the parent or 
subsidiary of the certified applicant. 
Sec. 1-6. 36 MRSA §5219-VV, sub-§5, 1A, as enacted by PL 2019, c. 386, §2, 
is amended by amending subparagraph (1) to read: 
(1) 
The number of full-time employees based in the State of the certified 
applicant on the last day of the tax year ea:drng during the ealendai- year 
immediately preeeding the report year; and 
PARTJ 
Sec. J-1. 36 MRSA §5122, sub-§2, 100, as amended by PL 2019, c. 527, Pt. A, 
§ 1, is further amended to read: 
00. For taxable years beginning on or after January 1, 2016 a:ad before Jana-ary 1, 
2t)2-0, an amount equal to the net increase in the depreciation deduction allowable 
under the Code, Sections 167 and 168 that would have been applicable to that 
property had the depreciation deduction under the Code, Section l 68(k) not been 
claimed with respect to such property placed in service during the any taxable year 
beginning on or after January 1. 2015 but before January 1, 2020 for which an 
addition was required under subsection 1, paragraph KK, subparagraph (2) for the 
taxable year. 
Upon the taxable disposition of property to which this paragraph applies, the amount 
of any gain or loss includable in federal adjusted gross income must be adjusted for 
Maine income tax purposes by an amount equal to the difference between the 
addition modification for such property under subsection 1, paragraph KK, 
subparagraph (2) and the subtraction modifications allowed pursuant to this 
paragraph. 
The total amount of subtraction claimed under this paragraph for all tax years may 
not exceed the addition modification under subsection 1, paragraph KK, 
subparagraph (2) for the same property. 
Sec. J-2. 36 MRSA §5200-A, sub-§2, 1AA, as amended by PL 2019, c. 527, Pt. 
A, §3, is further amended to read: 
AA. For taxable years beginning on or after January 1, 2016 ana before January 1, 
2t)2-0, an amount equal to the net increase in the depreciation deduction allowable 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "/1" to H.P. 1458, L.D. 2047 
under the Code, Sections 167 and 168 that would have been applicable to that 
property had the depreciation deduction under the Code, Section l 68(k) not been 
claimed with respect to such property placed in service during the any taxable year 
beginning on or after January 1. 2015 but before January 1, 2020 for which an 
addition was required under subsection 1, paragraph CC, subparagraph (2) for the 
taxable year. 
Upon the taxable disposition of property to which this paragraph applies, the amount 
of any gain or loss includable in federal taxable income must be adjusted for Maine 
income tax purposes by an amount equal to the difference between the addition 
modification for such property under subsection 1, paragraph CC, subparagraph (2) 
and the subtraction modifications allowed pursuant to this paragraph. 
The total amount of subtraction claimed under this paragraph for all tax years may 
not exceed the addition modification under subsection 1, paragraph CC, subparagraph 
(2) for the same property. 
PARTK 
Sec. K-1. 30-A MRSA §4722, sub-§1, ,OD, as corrected by RR 2017, c. 1, §24, 
is amended by amending subparagraph ( 4) to read: 
(4) Annually by every August 1st until and including August 1, ~ 
2025, the 
Maine State Housing Authority shall review the report issued pursuant to Title 
27, section 511, subsection 5, paragraph A to determine the percentage of the 
total aggregate square feet of completed projects that constitutes new affordable 
housing, rehabilitated and developed using: 
(a) 
Either of the income tax credits under Title 36, section 5219-BB, 
subsection 2; and 
(b) 
The income tax credit increase under Title 36, section 5219-BB, 
subsection 3. 
If the total aggregate square feet of new affordable housing does not equal or 
exceed 30% of the total aggregate square feet of rehabilitated and developed 
completed projects eligible for a credit under Title 36, section 5219-BB, the 
Maine State Housing Authority and Maine Historic Preservation Commission 
shall notify the State Tax Assessor of this fact; 
Sec. K-2. 36 MRSA §5219-BB, sub-§1, ,re, as amended by PL 2011, c. 453, 
§7, is further amended to read: 
C. "Certified qualified rehabilitation expenditure" means a qualified rehabilitation 
expenditure, as defined by the Code, Section 47(c)(2), made betwee11 on or after 
January 1, 2008 and December 31, 20:23. For pl:lrpeses of S-l¼bsectien 2, paragraph. B, 
qualified rehabilitatioo E9q3en:ditares i:aeutted in the eertified rehabilitatien ef a 
eertified histeric straet'l¼re loeated m. th.e State do net melude a req-wremellt th.at th.e 
certified historic struetare be se.bstaatially rehabilitated. with respect to a certified 
historic structure. if: 
COMMITTEE AMENDMENT 
COMMITIEE AMENDMENT '/I" to H.P. 1458, L.D. 2047 
(1) For credits claimed under subsection 2, paragraph A. the United States 
Department of the Interior. National Park Service issues a determination on or 
before December 31, 2025 that the proposed rehabilitation of that structure meets 
the Secretary of the Interior's standards for rehabilitation. with or without 
conditions: or 
(2) For credits claimed under subsection 2. paragraph B. the Maine Historic 
Preservation Commission issues a determination on or before December 31. 2025 
that the proposed rehabilitation of that structure meets the Secretary of the 
Interior's standards for rehabilitation, with or without conditions. 
For purposes of subsection 2, paragraph B. qualified rehabilitation expenditures 
incurred in the certified rehabilitation of a certified historic structure located in the 
State do not include a requirement that the certified historic structure be substantially 
rehabilitated. 
Sec. K-3. 36 MRSA §5219-BB, sub-§2, as amended by PL 2011, c. 240, §38 
and c. 453, §8, is further amended to read: 
2. Credit allowed. A taxpayer is allowed a credit against the tax imposed under this 
Part: 
A. Equal to 25% of the taxpayer's certified qualified rehabilitation expenditures for 
which a tax credit is claimed under Section 4 7 of the Code for a certified historic 
structure located in the State; or 
B. Equal to 25% of the certified qualified rehabilitation expenditures of a taxpayer 
who incurs not less than $50,000 and up to $250,000 in certified qualified 
rehabilitation expenditures in the rehabilitation of a certified historic structure located 
in the State and who does not claim a credit under the Code, Section 47 with regard 
to those expenditures. If the certified historic structure is a condominium, as defined 
in Title 33, section 1601-103, subsection 7, the dollar limitations of this paragraph 
apply to the total aggregate amount of certified qualified rehabilitation expenditures 
incurred by the unit owners' association and all of the unit owners in the rehabilitation 
of that certified historic structure. The credit may be claimed for the taxable year in 
which the certified historic structure is placed in service. 
A taxpayer is allowed a credit under paragraph A or B but not both. A credit may not be 
claimed for expenditures incurred before January 1, 2008 or after December 31, 2023.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment does the following. 
1. It excludes amounts due pursuant to the Maine Revised Statutes, Title 36, Part 2 
from the refund offset expansion in the bill and clarifies a taxpayer's appeal rights during 
the process. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT 'ft' to H.P. 1458, L.D. 2047 
2. It clarifies the effect of a federal income tax extension on the state income tax 
filing dates. 
3. It strikes Part Hof the bill, which makes changes to the real estate transfer tax. 
4. It makes the following changes to the credit for major food processing and 
manufacturing facility expansion. 
A. It clarifies that the requirement for a facility to process, produce and manufacture 
food from agricultural products primarily grown and harvested in the State is an 
ongoing requirement. 
B. It clarifies that the expenditures of a qualified applicant and other entities, 
O 
whether or not incorporated, that are part of a single business enterprise must be 
aggregated to determine whether a qualified investment has been made. 
C. It clarifies that jobs that must be added in order to qualify for the credit must be 
added after the first day of the year in which the certificate of approval was issued. 
D. It clarifies that the headquarters and facility of a certified applicant or of a parent 
or subsidiary of the certified applicant, must be located in the State and that the 
annual income of at least 75% of the certified applicant's employees must exceed the 
most recent annual per capita personal income in the county in which the facility is 
located in order for the applicant to qualify for a certificate of completion or the 
credit. 
5. It clarifies that property placed in service during tax years beginning on or after 
January 1, 2015 but before January 1, 2020 for which a bonus depreciation addition 
modification was required and for which the Maine capital investment credit was not 
claimed is eligible for a depreciation subtraction modification in tax years beginning after 
2019 to allow the taxpayer to fully claim depreciation on that property over the class life 
of the property for Maine income tax purposes. 
6. It extends the credit for rehabilitation of historic properties from allowing a credit 
for qualified rehabilitation expenditures made prior to December 31, 2023 to allowing a 
credit for qualified rehabilitation expenditures made by certified project if the Maine 
Historic Preservation Commission or the United States Department of the Interior, 
National Park Service, as required, issues a determination on or before December 31, 
2025 that the proposed rehabilitation of that structure meets the Secretary of the Interior's 
standards for rehabilitation. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 02/27/20 ?-Pac::. 
LD 2047 
LR2992(02) 
An Act To Amend the State Tax Laws 
Fiscal Note for Bill as Amended by Committee Amendment.;},( (/-JI,(:;\ 
Committee: Taxation 
"J_j 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Fiscal Detail and Notes 
Additional costs to the Departments of Economic and Community Development and Administrative and Financial 
Services as well as to the Maine Historic Preservation Commission to implement the requirements of this legislatior 
can be absorbed within existing budgeted resources. 
LR2992(02) - Fiscal Note - Page 1 of 1