An Act to Create an Income Tax Credit for Investments in a Team's Qualified Minor League Baseball Facility to Keep the Team in the State
Maine Legislature, Session 131, LD 2258
Committee: Taxation
Sponsors: JACKSON, TALBOT ROSS, CHIPMAN, DUSON, COLLINGS, CROCKETT, MOONEN, PERRY, SKOLD, ZAGER
Amends: 36 MRSA §5122, 36 MRSA §5200-A, 36 MRSA §5219-B

Legislative Document
No. 2258
S.P. 975
In Senate, March 7, 2024
An Act to Create an Income Tax Credit for Investments in a Team's 
Qualified Minor League Baseball Facility to Keep the Team in the 
State
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203.
Reference to the Committee on Taxation suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by President JACKSON of Aroostook.
Cosponsored by Speaker TALBOT ROSS of Portland and
Senators: CHIPMAN of Cumberland, DUSON of Cumberland, Representatives: COLLINGS 
of Portland, CROCKETT of Portland, MOONEN of Portland, PERRY of Bangor, SKOLD of 
Portland, ZAGER of Portland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §5122, sub-§1, ¶QQ is enacted to read:
QQ.  For taxable years beginning on or after January 1, 2025:
(1)  An amount equal to the net increase in depreciation attributable to the 
depreciation deduction claimed by the taxpayer under the Code, Section 168(k) 
with respect to a facility placed in service in the State during the taxable year for 
which a credit is claimed under section 5219‑BBB for that taxable year; and
(2)  An amount equal to the net increase in depreciation attributable to the 
depreciation deduction claimed by the taxpayer under the Code, Section 168(k) 
with respect to a facility for which a credit is not claimed under section 5219‑BBB.
As used in this paragraph, "facility" means a qualified professional baseball facility, as 
defined in section 5219-BBB, paragraph F, that is the subject of a qualified investment, 
as defined in section 5219-BBB, paragraph E.
Sec. 2.  36 MRSA §5200-A, sub-§1, ¶LL is enacted to read:
LL.  For taxable years beginning on or after January 1, 2025:
(1)  An amount equal to the net increase in depreciation attributable to the 
depreciation deduction claimed by the taxpayer under the Code, Section 168(k) 
with respect to a facility placed in service in the State during the taxable year for 
which a credit is claimed under section 5219‑BBB for that taxable year; and
(2)  An amount equal to the net increase in depreciation attributable to the 
depreciation deduction claimed by the taxpayer under the Code, Section 168(k) 
with respect to a facility for which a credit is not claimed under section 5219‑BBB.
As used in this paragraph, "facility" means a qualified professional baseball facility, as 
defined in section 5219-BBB, paragraph F, that is the subject of a qualified investment, 
as defined in section 5219-BBB, paragraph E.
Sec. 3.  36 MRSA §5219-BBB is enacted to read:
§5219-BBB.  Credit for investment in qualified professional baseball facilities in the 
State
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.  "Commissioner" means the Commissioner of Economic and Community 
Development.
C.  "Full-time" means an average of at least 36 hours weekly during the period of 
measurement.
D.  "Qualified applicant" means an applicant that, at the time the application for a 
certificate of approval is submitted pursuant to subsection 2, operates a qualified 
professional baseball facility.
E.  "Qualified investment" means an investment made between October 1, 2023 and 
November 30, 2026 of at least $1,000,000 but not more than $15,000,000 to design, 
permit, construct, modify, equip or expand a qualified professional baseball facility.  
The expenditures of a qualified applicant and other entities, whether or not 
incorporated, that are part of a single business enterprise must be aggregated to 
determine whether a qualified investment has been made. 
F.  "Qualified professional baseball facility" means real and personal property in the 
State, including one or more structures and the equipment, machinery, fixtures and 
personal property located in, on, over, under and adjacent to those structures, used for 
the operation of a minor league baseball team that is recognized by a national 
organization of major or minor league baseball teams.
2.  Procedures for application; certificate of approval.  This subsection governs the 
procedures for applying for and obtaining a certificate of approval.
A.  An applicant may apply to the commissioner for a certificate of approval.  An 
applicant shall submit to the commissioner information demonstrating that the 
applicant is a qualified applicant. Such information must include an agreement by the 
applicant that all employees and subcontractors of the applicant are provided fair 
minimum wages and benefits at a rate specified in Title 26, section 1306 or greater.
B.  Within 30 days of receipt of an application for a certificate of approval submitted 
pursuant to paragraph A, the commissioner shall determine whether the applicant is a 
qualified applicant and shall issue either a certificate of approval as a certified applicant 
or a written denial indicating why the applicant is not qualified.  A certificate of 
approval issued by the commissioner must describe the qualified investment and 
specify the total amount of qualified investment approved under the certificate of 
approval.
C.  A certified applicant shall apply to the commissioner for a certificate of completion.  
If the commissioner determines that the certified applicant has made a qualified 
investment, the commissioner shall issue a certificate of completion to the certified 
applicant as soon as is practicable.  The certificate of completion must state the amount 
of qualified investment made by the certified applicant.  
D.  If a certified applicant intends to transfer the qualified professional baseball facility 
prior to completion of the qualified investment, the certified applicant must obtain 
approval from the commissioner to transfer the certificate of approval or, if the certified 
applicant has obtained a certificate of completion, that certificate of completion to the 
transferee.  The commissioner shall approve the transfer of the certificate of approval 
or the certificate of completion only if at least one of the following conditions is 
satisfied:
(1)  The transferee is a member of the certified applicant's unitary affiliated group 
at the time of the transfer; or
(2)  The commissioner finds that the transferee will, and has the capacity to, 
maintain operations of the qualified professional baseball facility in a manner that 
meets the minimum qualifications for continued eligibility for the tax credit under 
this section after the transfer occurs.
If the commissioner approves the transfer of the certificate of approval or the certificate 
of completion, the transferee, from the date of the transfer, must be treated as the 
certified applicant and as eligible to claim any remaining tax credit under the certificate 
of approval or the certificate of completion that has not been previously claimed by the 
original certified applicant as long as the transferee meets the same eligibility 
requirements and conditions for the tax credit as applied to the original certified 
applicant. 
3.  Refundable tax credit allowed.  Beginning with the tax year during which a 
certificate of completion is issued under subsection 2, paragraph C, a certified applicant is 
allowed a credit against the tax due under this Part for the taxable year in an amount equal 
to 10% of the certified applicant's qualified investment.  A credit under this section for a 
certified applicant may not exceed $100,000 per year and $1,000,000 in cumulative total.
4.  Reporting required.  A certified applicant, the commissioner and the assessor are 
required to make reports pursuant to this subsection.
A.  On or before March 1st of each year, beginning in 2025, 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 subsection as "the report year," containing 
the following information:
(1) The incremental amount of qualified investment made by the certified applicant 
in the report year;
(2) The number of full-time employees based in this State of the certified applicant 
on the last day of the report year;
(3) The total number of any additional full-time employees in the State added by 
the certified applicant since the date a certificate of approval was issued pursuant 
to subsection 2, paragraph B and since the last annual report; 
(4) The average and median wages of all full-time employees of the certified 
applicant; and  
(5) The percentage and number of full-time employees of the certified applicant 
who have access to retirement benefits and health benefits. 
The commissioner may prescribe forms for the annual report described in this 
paragraph.  The commissioner shall provide copies of the report to the assessor and to 
the joint standing committee of the Legislature having jurisdiction over taxation 
matters at the time the report is received.
B.  On or before April 1st of each year, beginning in 2025, the commissioner shall 
report to the joint standing committee of the Legislature having jurisdiction over 
taxation matters aggregate data on qualified investment amounts of each certified 
applicant for each year that the certified applicant claimed a tax credit under this 
section.
C.  On or before December 31st of each year, beginning in 2025, the assessor shall 
report to the joint standing committee of the Legislature having jurisdiction over 
taxation matters the revenue loss during the report year as a result of this section for 
each certified applicant claiming the tax credit and, if necessary, shall include updated 
revenue loss amounts for any previous tax year.  For purposes of this paragraph, 
"revenue loss" means the tax credit claimed by the taxpayer and allowed pursuant to 
this section, consisting of the amount of the credit used to reduce the tax liability of the 
taxpayer and the amount of the credit refunded to the taxpayer, stated separately. 
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.  Recapture.  The credit allowed under this section must be fully recaptured to the 
extent claimed by the taxpayer if the qualified investment forming the basis of the credit is 
not used as a qualified professional baseball facility by the certified applicant or a transferee 
approved pursuant to subsection 2, paragraph D for the entire 60-month period following 
the qualified investment. The credit must be recaptured by filing an amended return in 
accordance with section 5227-A for the tax year in which that qualified investment was 
used to calculate the credit under this section. The amended return must reflect the credit 
disallowed and the income modifications required by section 5122, subsection 1, paragraph 
QQ and section 5200-A, subsection 1, paragraph LL with respect to that facility.
6.  Rules.  The commissioner and the assessor may jointly adopt rules to implement 
this section, including, but not limited to, rules for determining and certifying eligibility.  
Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, 
chapter 375, subchapter 2‑A.  
7.  Evaluation.  The tax 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.  The amount of qualified investment made by each certified applicant during the 
period being reviewed and measures of fiscal impact; 
B.  Employment measures taken by each certified applicant, including:
(1) The number of any additional full-time employees in the State added by each 
certified applicant since that applicant was issued a certificate of approval pursuant 
to subsection 2, paragraph B;
(2) The average and median wages paid to full-time employees of each certified 
applicant; and 
(3) The percentage and number of full-time employees of each certified applicant 
for whom health benefits and retirement benefits are available; and
C. The overall economic impact to the State and to the regions in which certified 
applicants are located.
SUMMARY
This bill provides an income tax credit for a qualified investment of at least $1,000,000 
but no more than $15,000,000 by a certified applicant in a qualified professional baseball 
facility in the State.  The certified applicant must continue operations as a professional 
baseball facility for at least 60 months following the investment for which the tax credit is 
issued.