An Act To Reduce Errors in Employment Tax Increment Financing Benefits
Maine Legislature, Session 130, LD 1156
Committee Amendment CA_A_H887 (House)
Amends: 36 MRSA §6753, 36 MRSA §6754

COMMITTEE AMENDMENT "fr" to H.P. 834, L.D. 1156, "An Act To Reduce 
Errors in Employment Tax Increment Financing Benefits" 
Amend the bill in section 1 in subsection 5-B in the last 2 lines (page 1, lines 4 and 5 
in L.D.) by striking out the following: "the benefit percentage" and inserting the following: 
'4.5%' 
Amend the bill by strildng out all of section 2. 
Amend the bill by striking out all of section 3 and inserting the following: 
'Sec. 3. 36 MRSA §6753, sub-§7, as amended by PL 2005, c. 351, §22 and affected 
by §26, is further amended to read: 
7. Employment tax increment. "Employment For reimbursement based on calendar 
years prior to 2022, "employment tax increment" means that level of employment, payroll 
and state income withholding taxes attributed to qualified employees employed by a 
qualified business above the base level for the qualified business, adjusted pursuant to 
subsection 12 for shifts in employment by affiliated businesses. For reimbursement based 
on calendar year 2022, and for each calendar year thereafter, "employment tax increment" 
means the total gross wages paid by a qualified business to qualified employees above the 
base level of employment for the qualified business.' 
Amend the bill by striking out all of section 4 and inserting the following: 
'Sec. 4. 36 MRSA §6753, sub-§9, as enacted by PL 1995, c. 669, §5, is amended 
to read: 
9. Gross employment tax increment. .!!Gre.95 For reimbursement based on calendar 
years prior to 2022, "gross employment tax increment" means that level of employment, 
payroll and State state income tax withholding taxes attributed to qualified employees 
employed by a qualified business that is greater than the base level for the qualified 
business. For reimbursement based on calendar year 2022, and for each calendar year 
thereafter, "gross employment tax increment" means the total gross wages paid by a 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT"~~ H.P. 834, L.D. 1156 
qualified business to qualified employees above the base level of employment for the 
qualified business.' 
Amend the bill by striking out all of section 5 and inserting the following: 
'Sec. 5. 36 MRSA §6753, sub-§9-A is enacted to read: 
9-A. Gross wages. "Gross wages" means taxable wages, tips and other compensation 
included on the wage and tax statement for services performed in this State during the 
calendar year. 
Sec. 6. 36 MRSA §6754, sub-§1, as amended by PL 2021, c. 398, Pt. IlII, §7, is 
further amended to read: 
1. Generally. Subject to the provisions of subsection 2, a qualified business is entitled 
to reimbursement of Maine income tmc v,rithheld gross wages paid during the calendar year 
for which reimbursement is requested and attributed to qualified employees after July 1, 
1996 in the following amounts. 
A. For qualified employees employed by a qualified business in labor market areas in 
this State in which the labor market unemployment rate is at or below the State's 
unemployment rate at the time of application, the reimbursement is equal to 30% of 
Maine income tax withheld the benefit base during each of the first 5 calendar years 
for which reimbursement is requested and attributed to those qualified employees. The 
percentage of reimbursement for the 6th to 10th years of the employment tax increment 
financing development program is established based upon the labor market 
unemployment rate at the beginning of the 6th year. 
B. For qualified employees employed by a qualified business in labor market areas in 
this State in which the labor market unemployment rate is greater than the State's 
unemployment rate at the time of application, the reimbursement is equal to 50% of 
·Maine income tax withheld the benefit base during each of the first 5 calendar years 
for which reimbursement is requested and attributed to those qualified employees. The 
percentage of reimbursement for the 6th to 10th years of the employment tax increment 
fmancing development program is established based upon the labor market 
unemployment rate at the beginning of the 6th year. 
C. For qualified employees employed by a qualified business in labor market areas in 
this State in which the labor market unemployment rate is greater than 150% of the 
State's unemployment rate at the time of application, the reimbursement is equal to 
75% of}.4aine income tax withheld the benefit base during each of the first 5 calendar 
years for which reimbursement is requested and attributed to those qualified 
employees. The percentage of reimbursement for the 6th to 10th 'years of the 
employment tax increment financing development program is established based upon 
7 
the labor market unemployment rate at the beginning of the 6th year. 
D. For qualified Pine Tree Development Zone employees, as defmed in Title 30-A, 
section 5250-I, subsection 18, employed directly in the qualified business activity of a 
qualified Pine Tree Development Zone business, as defmed in Title 30-A, section 
5250-I, subsection 17, for whom a certificate of qualification has been issued in 
accordance with Title 30-A, section 5250-0, the reimbursement under this subsection 
is equal to 80% of Maine income tmc withheld the benefit base each year for which 
reimbursement is requested and attributed to those qualified employees for a period of 
COMMITTEE AMENDMENT 
CO:rvrM.ITTEE AMENDMENT '~to H.P. 834, L.D. 1156 
no more than 10 years for a tier 1 location as defined in Title 30-A, section 5250-I, 
subsection 21-A and no more than 5 years for a tier 2 location as defined in Title 3 0-A, 
section 5250-I, subsection 21-B. Reimbursement under this paragraph may not be paid 
for years beginning after December 31, 2033.' 
Amend the bill in section 6 in §6762 in the first indented paragraph in the 2nd line 
(page 2, line 37 in L.D.) by striking out the following: "with 2022" and inserting the 
following: 'after December 31, 2021' 
Amend the bill by striking out all of section 7. 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section 
number to read consecutively. 
SUMMARY 
This amendment simplifies the calculation of the employment tax increment financing 
benefits based on gross wages, clarifies that the changes apply to calendar years beginning 
with 2022 and removes an unneeded provision requiring the Commissioner of Economic 
and Community Development and the State Tax Assessor to submit implementing 
language. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/23/22 frae 
LD 1156 
LR 1378(02) 
An Act To Reduce Errors in Employment Tax Increment Financing Benefits 
Fiscal Note for Bill as Amended by Committee Amendment /J{JlCS1/7.) 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Fiscal Detail and Notes 
Additional costs to the Department of Administrative and Financial Services associated with this legislation can be 
absorbed within existing budgeted resources. 
LR1378(02) - Fiscal Note - Page 1 of 1