An Act To O
Maine Legislature, Session 129, LD 1200
Committee Amendment CA_A_S169 (Senate)
Amends: 10 MRSA §1100-T, 36 MRSA §5216-B

COMMITTEE AMENDMENT "/} " to S.P. 375, L.D. 1200, Bill, "An Act To 
O 
Amend the Maine Seed Capital Tax Credit Program" 
Amend the bill by striking out all of section 1 and inserting the following: 
'Sec. 1. 10 MRSA §1100-T, sub-§2, ,fA, as amended by PL 2013, c. 438, §3, is 
further amended to read: 
A. For investments made in tax years beginning before January 1, 2012, a tax credit 
certificate may be issued in an amount not more than 40% of the amount of cash 
actually invested in an eligible Maine business in any calendar year or in an amount 
not more than 60% of the amount of cash actually invested in any one calendar year 
in an eligible Maine business located in a high-unemployment area, as determined by 
rule by the authority. 
For investments made in tax years beginning on or after 
January 1, 2012, a tax credit certificate may be issued to an investor other than a 
private venture capital fund in an amount not more than 60% of the amount of cash 
actually invested in an eligible Maine business in any calendar year. For investments 
made in tax years beginning on or after January 1, 2014, a tax credit certificate may 
be issued to an investor other than a private venture capital fund in an amount not 
more than 50% of the amount of cash actually invested in an eligible Maine business 
in any calendar year. 
For investments made after April 1, 2019, a tax credit 
certificate may be issued to an investor other than a private venture capital fund in an 
amount not more than 40% of the amount of cash actually invested in an eligible 
Maine business in any calendar year. Rules adopted pursuant to this section are 
routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. 
Sec. 2. 10 MRSA §1100-T, sub-§2, ,rI, as enacted by PL 2001, c. 642, §7 and 
affected by § 12, is amended to read: 
I. The business receiving the investment may not be in violation of the requirements 
of subsection 61.' 
Amend the bill by inserting after section 2 the following: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" /· "to S.P. 375, L.D. 1200 
) 
'Sec. 3. 10 MRSA §1100-T, sub-§2-A, 18, as amended by PL 2009, c. 470, §3, 
is further amended to read: 
B. As used in this subsection, unless the context otherwise indicates, an "eligible 
business" means a business located in the State that: 
(1) Is a manufacturer; 
(2) Is engaged in the development or application of advanced technologies; 
(3) Provides a product or service that is sold or rendered, or is projected to be 
sold or rendered, predominantly outside of the State; 
(4) Brings capital into the State, as determined by the authority; or 
(5) Is certified as a visual media production company under Title 5, section 
13090-L.' 
Amend the bill by striking out all of section 4 and inserting the following: 
'Sec. 4. 10 MRSA §1100-T, sub-§2-C, 18, as amended by PL 2013, c. 438, §4, 
is further amended to read: 
B. 
As used in this subsection, unless the context otherwise indicates, "eligible 
business" means a business located in the State that has certified that the amount of 
the investment is necessary to allow the business to create or retain jobs in the State 
and that, as determined by the authority: 
(1) Is a manufacturer or a value-added natural resource enterprise; 
(2) Is engaged in the development or application of advanced technologies; 
(3) Provides a product or service that is sold or rendered, or is projected to be 
sold or rendered, predominantly outside of the State; or 
(5) Is certified as a visual media production company under Title 5, section 
13090-L.' 
Amend the bill by striking out all of section 7 and inserting the following: 
'Sec. 7. 10 MRSA §1100-T, sub-§4, as amended by PL 2013, c. 438, §5, is 
further amended to read: 
4. Total of credits authorized. The authority may issue tax credit certificates to 
investors eligible pursuant to subsections 2, 2-A and 2-C in an aggregate amount not to 
exceed $2,000,000 up to and including calendar year 1996, $3,000,000 up to and 
including calendar year 1997, $5,500,000 up to and including calendar year 1998, 
$8,000,000 up to and including calendar year 2001, $11,000,000 up to and including 
calendar year 2002, $14,000,000 up to and including calendar year 2003, $17,000,000 up 
to and including calendar year 2004, $20,000,000 up to and including calendar year 2005, 
$23,000,000 up to and including calendar year 2006, $26,000,000 up to and including 
calendar year 2007 and $30,000,000 up to and including calendar year 2013, in addition 
to which, the authority may issue tax credit certificates to investors eligible pursuant to 
subsections 2, 2-A and 2-C in an annual amount not to exceed $675,000 for investments 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to S.P. 375, L.D. 1200 
(. 
IL/111) 
I 
made between January 1, 2014 and December 31, 2014, $4,000,000 for investments made 
in calendar year 2015 a-aai $5,000,000 for investments made in calendar years 2016 to 
2018, $15,000,000 for investments made in calendar years 2019 to 2025 and $5,000,000 
each year for investments made in calendar years beginning with WM 2026. 
The 
authority may provide that investors eligible for a tax credit under this section in a year 
when there is insufficient credit available are entitled to take the credit when it becomes 
available subject to limitations established by the authority by rule. 
Rules adopted 
pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, 
subchapter 2-A. 
Sec. 8. 10 MRSA §1100-T, sub-§6, as amended by PL 2011, c. 454, §8, is 
repealed. 
Sec. 9. 10 MRSA §1100-T, sub-§7 is enacted to read: 
7. 
Reports. The following reports are required regarding activities under this 
section. 
A. A business eligible to have investors receive a tax credit under this section shall 
report to the authority, in a manner to be determined by the authority, the following 
information regarding its activities in the State over the calendar year in which the 
investment occurred and for each additional year for which a credit is claimed: 
(1) The total amount of private investment received by the eligible business from 
each investor eligible to receive a tax credit; 
(2) 
The total number of persons employed by the eligible business as of 
December 31st; 
(3) The total number and geographic location of jobs created and retained by the 
eligible business stated separately for all jobs in the State and for those jobs that 
would not have been created or retained in the absence of the credit; 
(4) 
Total annual payroll of the eligible business stated separately for all 
employees in the State and for those employees who would not have been 
employed in the absence of the credit; and 
(5) Total sales revenue of the eligible business stated separately within and 
outside the State. 
B. An investor eligible for a tax credit under this section shall notify the authority 
when a business that received an investment from that investor eligible for a credit 
under this section ceases operations and the likely reasons for the cessation of 
business. 
C. 
The authority shall report annually to the joint standing committee of the 
Legislature having jurisdiction over taxation matters and to the Office of Program 
7 
Evaluation and Government Accountability on all activity under this section during 
the prior calendar year. The authority shall identify in its report businesses receiving 
investments eligible for a credit under this section and the authority's determination 
as to whether the investments would have been made in the absence of the credit. 
Sec. 10. 36 MRSA §5216-B, sub-§6 is enacted to read: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT"! , "to S.P. 375, L.D. 1200 
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6. 
Evaluation; specific public policy objective; 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 matters 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 increase job opportunities for residents of the State in businesses that 
export products or services from the State; 
(2) 
To increase private investment in small new and existing businesses, 
especially those that experience significant difficulty in the absence of investment 
incentives in obtaining equity financing to carry the businesses from start-up 
through initial development; and 
(3) To increase municipal tax bases; and 
B. Performance measures, including, but not limited to: 
(1) The number and geographic distribution 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; 
(2) The amount of qualified investment in eligible businesses during the period 
being reviewed; 
(3) The change in the number of businesses created or retained in the State as a 
result of the credit; 
( 4) Measures of fiscal impact and overall economic impact to the State; and 
(5) The amount of the tax revenue loss for each year being reviewed divided by 
the number of jobs created or retained.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment restricts the increase in the overall annual limit on total authorized 
credits to calendar years 2019 to 2025, removes the requirement that a majority of an 
eligible business's employment associated with the creation and sale of a product or a 
provision of services be within the State and provides a structure for the required 
reporting of data to facilitate an evaluation of the effectiveness of the credit by the Office 
of Program Evaluation and Government Accountability. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Revised: 05/22/19 frac. 
LD 1200 
LR 1066(02) 
An Act To Amend the Maine Seed Capital Tax Credit Program 
Fiscal Note for Bill as Amended by Committee Amendment '{4'' ( S,- Ho c.t) 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2019-20 
FY 2020-21 
$1,282,500 
$2,755,000 
Projections 
FY 2021-22 
$4,180,000 
Projections 
FY 2022-23 
$5,367,500 
Other Special Revenue Funds 
($1,282,500) 
($67,500) 
($2, 755,000) 
($145,000) 
($4,180,000) 
($220,000) 
($5,367,500) 
($282,500) 
Fiscal Detail and Notes 
The bill increases the maximum tax credit ce1iificates under the Maine Seed Capital Tax Credit program from $5 
million to $15 million per year. It would result in a reduction in General Fund revenue of $1,282,500 in fiscal year 
2019-20 and $2, 755,000 in fiscal year 2020-21 and a reduction in Local Government Fund revenue of $67,500 in 
fiscal year 2019-20 and $145,000 in fiscal year 2020-21. 
The responsibilities outlined in this bill for the Office of Program Evaluation and Government Accountability 
(OPEGA) are already reflected in statutorily assigned work for OPEGA in reviewing tax expenditures. However, in 
order for OPEGA to meet the February 1, 2023 deadline for submitting their evaluation of this credit to the Taxation 
Committee, the Government Oversight Committee will need to prioritize this work over other planned tax expenditure 
reviews. Otherwise, OPEGA will need additional staff or contract resources to complete their review and submit their 
evaluation by February 1, 2023. 
Additional costs to the Finance Authority of Maine associated with rep01iing requirements can be absorbed within 
existing budgeted resources. 
LR1066(02) - Fiscal Note - Page 1 of 1