An Act To Promote Reliable Rural High-speed Internet
Maine Legislature, Session 130, LD 1118
Committee: Taxation
Sponsors: LAWRENCE
Amends: 36 MRSA §5219-Y

Legislative Document
No. 1118
S.P. 381
In Senate, March 22, 2021
An Act To Promote Reliable Rural High-speed Internet
Received by the Secretary of the Senate on March 18, 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 Senator LAWRENCE of York.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §5219-YY is enacted to read:
§5219-YY.  High-speed Internet investment tax credit
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
A.  "Commissioner" means the Commissioner of Economic and Community 
Development.
B.  "Department" means the Department of Economic and Community Development.
C.  "Eligible high-speed Internet provider" means a high-speed Internet service 
provider that has completed a qualified project.
D.  "Qualified customer" means an end user receiving high-speed Internet service at 
qualifying speeds from a qualified project.
E.  "Qualified project" means a project qualified by the commissioner under subsection 
4.
F.  "Qualifying speed" means high-speed Internet service with speeds at a minimum of 
megabits per second downstream and a minimum of 20 megabits per second 
upstream.
2.  Credit allowed.  An eligible high-speed Internet provider is eligible for:
A.  A $1,000 tax credit for each qualified customer; and
B.  A tax credit:
(1)  In the amount of $7,500 for each mile of fiber-optic cable installed as part of 
a qualified project where there is an average of 11 or more homes; and
(2)  In the amount of $10,000 for each mile of fiber-optic cable installed as part of 
a qualified project where there is an average of 10 or fewer homes.
3.  Limitations.  A person entitled to a credit under this section for any taxable year 
may carry over and apply the portion of any unused credits to the tax liability on income 
derived from the qualified project for any one or more of the next succeeding 10 taxable 
years. The credit allowed, including carryovers, may not reduce the tax otherwise due under 
this Part to less than zero and may not exceed the actual costs to the eligible high-speed 
Internet provider to complete the qualified project for which the credit is claimed under this 
section.
4.  Project qualification.  A high-speed Internet service provider may apply for 
qualification by the commissioner of a project that provides high-speed Internet service at 
qualifying speeds to customers in areas of service where the average number of potential 
customers per mile does not exceed 20.  Such an application must include the proposed 
location and speeds of the high-speed Internet service to be developed and must certify that 
qualified customers served by the project will be able to purchase internet service at 
qualifying speeds for not more than the Consumer Price Index price for high-speed Internet 
service in a metropolitan area.
5.  Certification.  A person claiming a tax credit under subsection 2 for a qualified 
project shall provide to the commissioner, in a manner determined by the commissioner, 
information that verifies the number of qualified customers served by the qualified project 
and that each qualified customer may access the Internet at qualifying speeds as a result of 
the qualified project and specifies the miles of fiber-optic cable installed and the customers 
per mile served by the qualified project.  Upon approval of the information, the 
commissioner shall provide the high-speed Internet provider with a letter of certification 
stating that the high-speed Internet service investments made are eligible for a tax credit 
under this section and stating the number of miles of fiber-optic cable and the number of 
qualified customers that gained access to high-speed Internet service at qualifying speeds 
during the taxable year.
6.  Application.  This section applies to tax years beginning on or after January 1, 
2022.
SUMMARY
This bill provides an income tax credit for high-speed Internet service providers who 
engage in a project approved by the Commissioner of Economic and Community 
Development that provides high-speed Internet service where the average number of 
potential customers per mile does not exceed 20 and the cost to the customers does not 
exceed the Consumer Price Index cost for high-speed Internet service in a metropolitan 
area.