An Act To Increase Workforce Skills for the Revitalization of Maine's Paper Industry through the Establishment of an Income Tax Credit for Paper Manufacturing Workforce Training
Maine Legislature, Session 130, LD 1713
Committee: Taxation
Sponsors: JACKSON, MARTIN, CHIPMAN, LIBBY, COLLINGS, MATLACK, PERRY, SACHS, TERRY
Amends: 36 MRSA §191, 36 MRSA §5219-Y

Legislative Document
No. 1713
S.P. 566
In Senate, May 19, 2021
An Act To Increase Workforce Skills for the Revitalization of 
Maine's Paper Industry through the Establishment of an Income 
Tax Credit for Paper Manufacturing Workforce Training
Received by the Secretary of the Senate on May 17, 2021.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by President JACKSON of Aroostook.
Cosponsored by Representative MARTIN of Sinclair and
Senators: CHIPMAN of Cumberland, LIBBY of Androscoggin, Representatives: COLLINGS 
of Portland, MARTIN of Eagle Lake, MATLACK of St. George, PERRY of Bangor, SACHS 
of Freeport, TERRY of Gorham.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §191, sub-§2, ¶MMM is enacted to read:
MMM.  The disclosure to the joint standing committee of the Legislature having 
jurisdiction over taxation matters pursuant to section 5219-YY, subsection 4, paragraph 
C of the revenue loss, including the loss due to refundable credits, attributable to each 
taxpayer claiming the tax credit for paper manufacturing workforce training provided 
under that section, regardless of the number of persons eligible for the credit.
Sec. 2.  36 MRSA §191, sub-§2, ¶NNN is enacted to read:
NNN.  The disclosure of information to the Department of Economic and Community 
Development necessary for the administration of the tax credit for paper manufacturing 
workforce training pursuant to section 5219-YY.
Sec. 3.  36 MRSA §5219-YY is enacted to read:
§5219-YY.  Credit for paper manufacturing workforce training
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
A.  "Certified applicant" means a qualified applicant that has received a certificate of 
approval from the commissioner pursuant to subsection 2.
B.  "Classified position" means a skilled job in manufacturing production, technical 
services or maintenance that is specifically assigned to a qualified employee. 
C.  "Commissioner" means the Commissioner of Economic and Community 
Development.
D.  "Employee based at a paper manufacturing facility" means an employee who 
performs more than 50% of the employee's employee-related activities for the 
employer at a paper manufacturing facility.
E.  "Full-time" means an average of at least 36 hours weekly during the period of 
employment.
F.  "Paper manufacturing facility" means a facility in the State at which paper products 
are manufactured, including facilities used in support of such paper manufacturing, that 
is not located within a low-income community.  As used in this paragraph, "low-
income community" has the same meaning as in 26 United States Code, Section 
45D(e)(1). 
G.  "Qualified applicant" means an applicant that, at the time an application for a 
certificate of approval is submitted, directly employs at least 400 qualified employees, 
at least 75% of whom earn at least 115% of the most recent annual per capita personal 
income in the county in which the qualified employee is employed.
H.  "Qualified employee" means a full-time employee based at a paper manufacturing 
facility:
(1)  For whom a retirement program subject to the federal Employee Retirement 
Income Security Act of 1974, 29 United States Code, Chapter 18 and group health 
insurance are provided; 
(2)  Whose income derived from employment at a paper manufacturing facility, 
calculated on a calendar year basis, is greater than the most recent annual per capita 
personal income in the county in which the employee is employed; and
(3)  Who is not a salaried employee as described by Title 26, section 663, 
subsection 3, paragraph K. 
"Qualified employee" does not include an employee who is transferred, as determined 
by the commissioner, to a qualified applicant from an affiliated business, as defined in 
section 6753, subsection 1-A, located in the State.
I.  "Qualified workforce training wages" means wages paid by a certified applicant to 
a qualified employee hired on or after January 1, 2021 during:
(1)  The 6-week period following the qualified employee's date of hire; and
(2)  Time spent training a qualified employee for a promotion to a new classified 
position.
2.  Procedures for application; certificate of approval.  This subsection governs the 
procedures for applying for and obtaining a certificate of approval for the tax credit under 
this section.
A.  A qualified applicant may apply to the commissioner for a certificate of approval.
B.  An applicant shall submit to the commissioner information demonstrating that the 
applicant is a qualified applicant. 
C.  The commissioner, within 30 days of receipt of an application submitted pursuant 
to paragraphs A and B, shall determine whether the applicant is a qualified applicant 
and shall issue either a certificate of approval or a written denial indicating why the 
applicant is not a qualified applicant.  A certificate issued by the commissioner must 
specify a limit on the amount of qualified workforce training wages approved under 
the certificate.  The commissioner may not issue a certificate to a qualified applicant 
that approves qualified workforce training wages of more than $1,000,000 per year or 
$6,000,000 in total.
D.  A certified applicant shall obtain approval from the commissioner prior to the 
transfer of the certificate of approval to another person.  A certificate of approval may 
be transferred only if all or substantially all of the assets of the certified applicant are, 
or will be, transferred to that person or if 50% or more of the certified applicant's voting 
stock or analogous noncorporate equity interest is, or will be, acquired by that person.  
The commissioner shall approve the transfer of the certificate of approval only if the 
transfer meets the requirements of this paragraph and at least one of the following 
conditions is satisfied:
(1)  The transferee is a member of the certified applicant's unitary affiliated group, 
as defined in section 5102, subsection 1-B, at the time of the transfer; or
(2)  The commissioner finds that the transferee will, and has the capacity to, 
maintain operations of the paper manufacturing facility in a manner that meets the 
minimum qualifications for continued eligibility for credits under this section after 
the transfer occurs. 
E.  If the commissioner approves the transfer of the certificate pursuant to paragraph 
D, the transferee, from the date of the transfer, must be treated as the certified applicant 
and as eligible to claim any remaining credit under the certificate of approval that was 
not previously claimed by the transferor as long as the transferee meets the same 
eligibility requirements and conditions for the credit as applied to the transferor. 
F.  The commissioner shall revoke a certificate of approval if the certified applicant or 
transferee ceases operations of the paper manufacturing facility in the State or the 
certificate of approval is transferred to another person without approval from the 
commissioner pursuant to paragraph D.
3.  Refundable credit allowed.  A certified applicant is allowed a refundable credit as 
provided in this subsection.
A.  Subject to the limitations under paragraph B, for tax years beginning on or after 
January 1, 2021 and ending on or before December 31, 2025, a certified applicant is 
allowed a credit against the tax otherwise due under this Part for the taxable year in an 
amount equal to any qualified workforce training wages paid during the taxable year 
up to the limit set forth in the certified applicant's certificate of approval under 
subsection 2.
B.  Cumulative credits under this subsection for all certified applicants may not exceed 
$2,000,000 per year and $12,000,000 in total.
4.  Reporting required.  A certified applicant, the commissioner and the State Tax 
Assessor are required to make reports pursuant to this subsection.
A.  On or before March 1st of each year, a certified applicant shall file a report with 
the commissioner for the tax year ending during the immediately preceding calendar 
year, referred to in this paragraph as "the report year," containing the following 
information:
(1)  The number of qualified employees of the certified applicant on the last day of 
the report year; and
(2)  The amount of qualified workforce training wages paid during the report year.
B.  By April 1st of each year, the commissioner shall report to the joint standing 
committee of the Legislature having jurisdiction over taxation matters aggregate data 
on employment levels and qualified workforce training wages paid by certified 
applicants for each year for which a certified applicant claimed a credit under this 
section.  
C.  By April 1st of each year, the State Tax Assessor shall report to the joint standing 
committee of the Legislature having jurisdiction over taxation matters the revenue loss 
during the previous calendar year as a result of this section for each taxpayer claiming 
the credit.  
D.  Notwithstanding any provision of law to the contrary, the reports provided under 
this subsection are public records as defined in Title 1, section 402, subsection 3.
5.  Evaluation; specific public policy objectives; performance measures.  The credit 
provided under this section is subject to ongoing legislative review in accordance with Title 
3, chapter 37.  In developing evaluation parameters to perform the review, the Office of 
Program Evaluation and Government Accountability, 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 shall 
consider:
A.  That the specific public policy objectives of the credit provided under this section 
are to provide incentives for the revitalization of paper manufacturing facilities in 
counties with high unemployment and to create or retain high-quality jobs in the State; 
and
B.  Performance measures, including, but not limited to:
(1)  The number of qualified employees added during the period being reviewed; 
(2)  The amount of qualified workforce training wages paid to qualified employees 
during the period being reviewed;
(3)  The number of qualified employees receiving training for classified positions;
(4)  The number of qualified employees who have completed training and been 
promoted to classified positions during the period being reviewed; and
(5)  Measures of fiscal impact and overall economic impact to the State and to the 
regions in which paper manufacturing facilities are located.
6.  Rules; fees.  The commissioner and the State Tax Assessor may jointly adopt rules 
to implement this section, including rules for determining and certifying an applicant's 
eligibility for a credit under this section.  The commissioner may also adopt rules 
establishing fees to offset the costs of administering this section.  Any fees collected 
pursuant to this subsection must be deposited into a special revenue account administered 
by the commissioner and may be used only to defray the actual costs of administering the 
credit under this section.  Rules adopted pursuant to this subsection are routine technical 
rules as defined in Title 5, chapter 375, subchapter 2-A.
SUMMARY
This bill creates a refundable Maine income tax credit for paper manufacturers 
providing workforce training to employees as long as certain employment and wage levels 
are met.  The income tax credit is equal to the amount of workforce training wages paid to 
certain employees each year and is subject to a limit of $2,000,000 per year among all 
eligible employers and $12,000,000 in total. The income tax credit is subject to ongoing 
legislative review.
This bill also requires employers receiving the income tax credit to file annual reports 
with the Commissioner of Economic and Community Development and requires the 
commissioner and State Tax Assessor to annually report to the joint standing committee of 
the Legislature having jurisdiction over taxation matters certain statistics and data related 
to the income tax credit.