An Act To Encourage Job Growth in the Forest Products Sector through Tax Incentives
Maine Legislature, Session 130, LD 1919
Committee Amendment CA_A_H944 (House)
Amends: 5 MRSA §13056, 36 MRSA §5215-A

COMMITTEE AMENDMENT "ff,' to H.P. 1425, L.D. 1919, "An Act To Encourage 
Job Growth in the Forest Products Sector through Tax Incentives" 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 5 MRSA §13056, sub-§7, as amended by PL 2003, c. 159, §3, is further 
amended to read: 
7. Contract for services. When contracting for services, to the maximum extent 
feasible, seek to use the State's private sector resources in conducting studies, providing 
services and preparing publications; aoo 
Sec. 2. 5 MRSA §13056, sub-§8, as enacted by PL 2003, c. 159, §4, is amended to 
read: 
• 
8. Lead agency for business assistance in response to certain events. Be the lead 
agency for the State to provide information and business assistance to employers and 
businesses as part of the State's response to an event that causes the Department of Labor 
to carry out rapid-response activities as described in 29 United States Code, Sections 2801 
to 2872 (2002),; and 
Sec. 3. 5 MRSA §13056, sub-§9 is enacted to read: 
9. Certify certain businesses. Annually certify businesses that are qualified to receive 
the timber harvesting business tax credit under Title 36, section 5215-A and provide a copy 
of each certification to the State Tax Assessor. 
Sec. 4. 36 MRSA §5215-A is enacted to read: 
§5215-A. Credit for timber harvesting sector iob growth 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "ff• to H.P. 1425, L.D. 1919 
A. "Base level of employment" means the average number of employees employed by 
the employer during the previous tax year or the previous 3 tax years, whichever is 
greater. 
B. 
"Commissioner" means the Commissioner of Economic and Community 
Development. 
C. "Full-time" means an average of at least 36 hours weekly. 
D. "Qualified employee" means a new, full-time employee of a qualified timber 
harvesting business who: 
(1) Works full time during the tax year for which the credit is claimed or, if the 
employee is employed for only part of the tax year, the employee works at least 
hours during the tax year in employment that is primarily timber harvesting or 
timber harvesting activities; 
(2) Is hired in this State by a qualified timber harvesting business and spends at 
least 90% of the qualified employee's work time in the State; 
(3) Is covered by the Employment Security Law; and 
(4) Derives income from employment with a qualified timber harvesting business 
that, calculated on a calendar year basis, is equal to or greater than the most recent 
annual per capita personal income in the county in which the employee is 
employed. 
"Qualified employee" does not include an employee who is shifted to the qualified 
timber harvesting business from an affiliated business or ail individual with 6 months 
of paid experience trained in mechanical timber harvesting or transfer of forest 
products as defined in Title 12, section 8881. subsection 3. 
E. "Qualified timber harvesting business" means a for-profit business certified by the 
commissioner pursuant to Title 5, section 13056, subsection 9 that adds one or more 
new qualified employees above its base level of employment in this State within a tax 
year beginning on or after January 1, 2023 and that has at least 75% of its business 
activities involved in the following: 
(1) Timber harvesting as defined in Title 12, section 8868, subsection 4 or timber 
harvesting activities as defined in Title 12, section 8868, subsection 5; or 
(2) Delivering timber, wood chips, wood fiber or plant fiber to a roundwood 
processing operation as defined in Title 12, section 8881, subsection 10. 
2. Credit. For tax years beginning on or after January 1, 2023, a qualified timber 
harvesting business is entitled to a refundable credit against the tax otherwise due under 
this Part for each qualified employee. The credit may not be claimed for more than 5 
qualified employees in any tax year or for more than 3 years for any one qualified 
employee, The credit is equal to: 
A. For the first tax year that a qualified employee is employed, $7,500 per qualified 
employee: 
B. For the 2nd tax year that a qualified employee is employed, $5,000 per qualified 
employee; or 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT"~ H.P. 1425, L.D. 1919 
C. For the 3rd tax year that a qualified employee is employed, $3,000 per qualified 
employee. 
3. Limitation. A qualified timber harvesting business may not claim a credit under 
this section during a tax year in which the business is receiving a tax credit under another 
provision of state law or any other state incentive payment for training new employees in 
timber harvesting or timber harvesting activities. 
4. Rulemaldng. The commissioner may adopt routine technical rules as defined in 
Title 5, chapter 375, subchapter 2-A to implement this section and to require a qualified 
timber harvesting business to report information necessary to facilitate the evaluation 
required under subsection 5. 
5. Evaluation. 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 new jobs in the State by means of timber harvesting businesses 
recruiting and training new employees in the State for jobs in the timber harvesting 
sector: and 
(2) To directly and indirectly improve the overall economy of the State, including 
the economic sectors of timber harvesting and small business, improve 
employment in rural areas and expand 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: 
(2) The increase in value in qualified timber harvesting businesses located in the 
State: and 
(3) Direct and indirect economic benefits to the State attributable to timber 
harvesting activities conducted by businesses receiving a credit under this section. 
Sec. 5. 
Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services, Bureau of 0002 
Initiative: Provides one-time funding for computer programming costs to add lines to the 
individual, fiduciary and corporate income tax returns. 
GENERAL FUND 
All Other 
2021-22 
$0 
COMMITTEE AMENDMENT 
2022-23 
$33,000 
COMMITTEE AMENDMENT" /I to H.P. 1425, L.D. 1919 
GENERAL FUND TOTAL 
$0 
$33,000 
ADMINISTRATIVE AND FINANCIAL 
~~·-,-·••' 
SERVICES, DEPARTMENT OF 
\BQ? 
DEPARTMENT TOTALS 
2021-22 
2022-23 
GENERAL FUND 
$0 
$33,000 
DEPARTMENT TOTAL-ALL FUNDS 
$0 
$33,000 
ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF 
Business Development 0585 
Initiative: Provides ongoing funds for one Development Program Officer position and 
related All Other costs to implement and administer the income tax credit for qualified 
timber harvesting businesses. 
GENERAL FUND 
2021-22 
2022-23 
POSITIONS - LEGISLATIVE COUNT 
0.000 
1.000 
Personal Services 
$0 
$65,115 
All Other 
$0 
$40,000 
GENERAL FUND TOTAL 
$0 
$105,115 
ECONOMIC AND COMMUNITY 
DEVELOPMENT, DEPARTMENT OF 
DEPARTMENT TOTALS 
2021-22 
2022-23 
GENERAL FUND 
$0 
$105,115 
DEPARTMENT TOTAL-ALL FUNDS 
$0 
$105,115 
SECTION TOTALS 
2021-22 
2022-23 
GENERAL FUND 
$0 
$138,115 
SECTION TOTAL -.ALL FUNDS 
$0 
$138,115 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section 
number to read consecutively. 
SUMMARY 
This amendment replaces the bill. The amendment creates an income tax credit for 
qualified timber harvesting businesses that employ new qualified employees hired in the 
State that are covered by the Employment Security Law and are paid an amount equal to 
COMMITTEE AMENDMENT 
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.... ..-Q$\ 
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COMMITTEE AMENDMENT •ff 
to H.P. 1425, L.D. 1919 
or greater than the most recent annual per capita personal income in the county in which 
the employees are employed. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Revised: 04/01/22 feae 
LD 1919 
LR2271(02) 
An Act To Encourage Job Growth in the Forest Products Sector through Tax Incentives 
Fiscal Note for Bill as Amended by Committee Amendment .f/-r{ f/--t/l/-C-f) 
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 
FY 2021-22 
$0 
$0 
$0 
$0 
FY 2022-23 
$138,115 
$138,115 
$0 
$0 
Projections 
FY 2023-24 
$528,820 
$101,320 
($427,500) 
($22,500) 
Projections 
FY 2024-25 
$1,400,848 
$104,098 
($1,296,750) 
($68,250) 
The bill provides an income tax credit for certain qualified timber harvesting businesses and will reduce General Fund 
and Other Special Revenue Funds revenue by $427,500 and $22,500, respectively, in fiscal year 2023-24. 
This bill includes General Fund appropriations totaling $138,115 in fiscal year 2022-23 for the costs associated with 
implementing and administering the income tax credit for qualified timber harvesting businesses. Of that amount, a 
one-time General Fund appropriation of $33,000 is provided to the Bureau of Revenue Services within the 
Department of Administrative and Financial Services for the computer programming costs to add lines to individual, 
fiduciary and corporate income tax returns. Additionally, a General Fund appropriation of $105,115 is provided to the 
Business Development program within the Department of Economic and Community Development for one 
Development Program Officer position and related All Other costs associated with implementing and administering 
the tax credit program. 
LR2271(02) - Fiscal Note - Page 1 of 1