An Act To Invest in Maine's Roads and Bridges
Maine Legislature, Session 130, LD 1382
Committee: Taxation
Sponsors: COLLINGS
Amends: 36 MRSA §2903, 36 MRSA §3203, 36 MRSA §5213-B

Legislative Document
No. 1382
H.P. 1016
House of Representatives, April 7, 2021
An Act To Invest in Maine's Roads and Bridges
Received by the Clerk of the House on April 5, 2021.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative COLLINGS of Portland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §2903, sub-§1, as amended by PL 2019, c. 379, Pt. B, §7, is 
further amended to read:
1.  Excise tax imposed.  An excise tax is imposed on internal combustion engine fuel 
used or sold in this State, including sales to the State or a political subdivision of the State, 
at the rate of 30.0¢ per gallon until September 30, 2021, 34.0¢ per gallon from October 1, 
2021 to September 30, 2022, 37.0¢ per gallon from October 1, 2022 to September 30, 2023, 
40.0¢ per gallon from October 1, 2023 to September 30, 2024 and 42.0¢ per gallon 
beginning October 1, 2024, except that the rate is 3.4¢ per gallon on internal combustion 
engine fuel bought or used for the purpose of propelling jet or turbojet engine aircraft. Any 
fuel containing at least 10% internal combustion engine fuel is subject to the tax imposed 
by this section.
Sec. 2.  36 MRSA §3203, sub-§1-B, as amended by PL 2019, c. 379, Pt. B, §8, is 
further amended to read:
1-B.  Generally; rates.  Except as provided in section 3204‑A, an excise tax is levied 
and imposed on all suppliers of distillates sold, on all retailers of low-energy fuel sold and 
on all users of special fuel used in this State for each gallon of distillate at the rate of 31.2¢  
per gallon until September 30, 2021, 35.2¢ per gallon from October 1, 2021 to September 
30, 2022, 38.2¢ per gallon from October 1, 2022 to September 30, 2023, 41.2¢ per gallon 
from October 1, 2023 to September 30, 2024 and 43.2¢ per gallon beginning October 1, 
2024.  Tax rates for each gallon of low-energy fuel are based on the British Thermal Unit, 
referred to in this subsection as "BTU," energy content for each fuel as based on gasoline 
gallon equivalents or the comparable measure for distillates.  The gasoline gallon 
equivalent is the amount of alternative fuel that equals the BTU energy content of one 
gallon of gasoline.  For purposes of this subsection, "base rate" means the rate in effect for 
gasoline or diesel on July 1st of each year.  A biodiesel blend containing less than 90% 
biodiesel fuel is subject to the rate of tax imposed on diesel.
A.  This paragraph establishes the applicable BTU values and tax rates based on 
gasoline gallon equivalents.
Fuel type based on 
gasoline
BTU content per gallon or 
gasoline gallon equivalent
Tax rate formula (BTU value 
fuel/BTU value gasoline) x base 
rate gasoline
Gasoline
115,000
100% x base rate
Propane
84,500
73% x base rate
Compressed Natural 
Gas (CNG)
115,000
100% x base rate
Methanol
56,800
49% x base rate
Ethanol
76,000
66% x base rate
Hydrogen
115,000
100% x base rate
Hydrogen 
Compressed Natural 
Gas
115,000
100% x base rate
B.  This paragraph establishes the applicable BTU values and tax rates based on 
distillate gallon equivalents.
Fuel type based on 
diesel
BTU content per gallon or 
gallon equivalent
Tax rate formula (BTU value 
fuel/BTU value diesel) x base rate 
diesel 
Diesel
128,400
100% x base rate
Liquefied Natural 
Gas (LNG)
73,500
57% x base rate
Biodiesel
118,300
92% x base rate
C.  The conversion factors established in this paragraph must be used in converting to 
gasoline gallon equivalents.
(1)  For compressed natural gas, BTUs per 100 standard cubic feet is 93,000, and 
there are 123.66 standard cubic feet per gasoline gallon equivalent.
(2)  For hydrogen, BTUs per 100 standard cubic feet is 27,000, and there are 425.93 
standard cubic feet per gasoline gallon equivalent.
(3)  For hydrogen compressed natural gas, BTUs per 100 standard cubic feet is 
79,800, and there are 144.11 standard cubic feet per gasoline gallon equivalent.
Sec. 3.  36 MRSA §5213-B is enacted to read:
§5213-B.  Fuel tax fairness credit
For tax years beginning on or after January 1, 2022, an individual with federal adjusted 
gross income lower than the federal poverty level as defined under section 6271, subsection 
1, paragraph B is allowed a refundable credit of $100 against the taxes imposed under this 
Part.
SUMMARY
This bill increases fuel taxes by 4¢ per gallon beginning October 1, 2021, an additional 
3¢ per gallon beginning October 1, 2022, an additional 3¢ per gallon beginning October 1, 
2023 and an additional 2¢ per gallon beginning October 1, 2024.  The bill also establishes 
a refundable income tax credit for individuals with federal adjusted gross income that is 
lower than the federal poverty level.