An Act to Promote Biomanufacturing and Biotechnology Development by Establishing a Tax Credit
Maine Legislature, Session 131, LD 1475
Committee: Taxation
Sponsors: JACKSON, TERRY, BENNETT, LIBBY, PIERCE, STEWART, BELL, CLOUTIER, COLLAMORE, MILLETT
Amends: 36 MRSA §5219-A

Legislative Document
No. 1475
S.P. 595
In Senate, April 5, 2023
An Act to Promote Biomanufacturing and Biotechnology 
Development by Establishing a Tax Credit
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 Representative TERRY of Gorham and
Senators: BENNETT of Oxford, LIBBY of Cumberland, PIERCE of Cumberland, STEWART 
of Aroostook, Representatives: BELL of Yarmouth, CLOUTIER of Lewiston, COLLAMORE 
of Waldoboro, MILLETT of Waterford.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §5219-AAA is enacted to read:
§5219-AAA.  Credit for biotechnology incubators and biomanufacturing facilities
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings:
A.  "Affiliated group" has the same meaning as in section 5102, subsection 1-B.
B.  "Biomanufacturing" means a facility of at least 5,000 square feet that engages in 
advanced manufacturing of biotechnology products.
C.  "Biotechnology incubator" means a facility of at least 5,000 square feet that offers 
laboratory space, management and meeting space and other resources to start-up, early-
stage or established biotechnology companies seeking to develop new biotechnology 
products.
D.  "Biotechnology products" means commercially important biomaterials and 
biomolecules for use in advanced research, medicines, food and beverage processing 
or industrial applications that are manufactured using biological processes.
E.  "Certified applicant" means a qualified applicant that has received a certificate of 
approval from the commissioner pursuant to this section.
F.  "Commissioner" means the Commissioner of Economic and Community 
Development.
G.  "Facility" means one or more buildings and includes the real and personal property 
located in those buildings.
H.  "Qualified applicant" means an applicant that, at the time an application for a 
certificate of approval is submitted, intends to make a qualified investment within 2 
years following the date of the application.
I.  "Qualified investment" means an investment of at least $5,000,000 and not more 
than $15,000,000 to design, permit, construct, modify, equip or expand a 
biotechnology incubator or a biomanufacturing facility that will be located in this State.  
2.  Procedures for application; certificate of approval.  This subsection governs the 
procedures for providing 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 qualified.  If a certified applicant intends to make an additional qualified 
investment, the certified applicant may apply to the commissioner for an additional 
certificate of approval.
B.  The commissioner, within 30 days of receipt of an application submitted pursuant 
to paragraph A, shall determine whether the applicant is qualified and shall issue either 
a certificate of approval or a written denial indicating why the applicant is not qualified.  
The certificate of approval issued by the commissioner must describe the qualified 
investment and specify the total amount of qualified investment approved under the 
certificate.  A qualified applicant may invest more than $15,000,000 in such projects, 
but only $15,000,000 of the investment may be considered a qualified investment for 
purposes of this section.  The investments and activities of a qualified applicant and 
other entities that are members of the qualified applicant's affiliated group must be 
aggregated to determine whether a qualified investment has been made.  A qualified 
investment includes capital from all sources, including loans, grants, gifts and other 
financing sources.
C.  Upon completing a qualified investment, a certified applicant shall submit an 
application to the commissioner for a certificate of completion.  If the commissioner 
determines that a qualified investment has been made, the commissioner shall issue a 
certificate of completion to the certified applicant within 30 days.  The certificate of 
completion must state the amount of qualified investment made by the certified 
applicant.
D.  Upon issuance of a certificate of completion in accordance with paragraph C, the 
commissioner shall issue, on behalf of the State, a memorandum to the qualified 
applicant describing the benefits provided by this section at the time the certificate of 
completion is issued. The memorandum must provide that the certificate of completion 
does not prohibit the commissioner from revoking a certificate in accordance with 
paragraph F and does not prohibit the assessor from assessing and collecting an 
overpaid benefit in accordance with the provisions of this Title.
E.  A certified applicant shall obtain approval from the commissioner to transfer a 
certificate of approval or a certificate of completion to another person. A certificate of 
approval or certificate of completion 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 is, or will be, acquired by that 
person. 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 person receiving the certificate of approval or certificate of completion is 
a member of the certified applicant's affiliated group at the time of the transfer; or
(2) The commissioner finds that the person receiving the certificate of approval or 
certificate of completion will, and has the capacity to, maintain operations of the 
biotechnology incubator or biomanufacturing facility in the State in a manner that 
meets the minimum qualifications for continued eligibility of benefits under this 
section after the transfer occurs.
If the commissioner approves a transfer of a certificate of approval or certificate of 
completion, the person receiving the certificate of approval or certificate of completion, 
from the date of the transfer, must be treated as the certified applicant and is eligible to 
claim any remaining benefit under the certificate of approval or the certificate of 
completion that has not been previously claimed by the certified applicant as long as 
the person receiving the certificate of approval or certificate of completion meets the 
same eligibility requirements and conditions for the credit as applied to the original 
certified applicant. 
F.  The commissioner shall revoke a certificate of approval if the certified applicant or 
a person that received a certificate of approval pursuant to paragraph D fails to make a 
qualified investment within 2 years of the date of the certificate of approval. The 
commissioner shall revoke a certificate of approval or a certificate of completion if the 
certified applicant or person receiving the certificate of approval or certificate of 
completion ceases operations of the biotechnology incubator or biomanufacturing 
facility in the State for more than 183 days or the certificate of approval or certificate 
of completion is transferred to another person without approval from the commissioner 
pursuant to paragraph E. A certified applicant whose certificate of completion is 
revoked within 3 years after the date it was issued shall return to the State an amount 
equal to the total credits claimed for all tax years under this section. A certified 
applicant whose certificate of completion is revoked during the period from 4 years to 
the end of 5 years after the date the certificate was issued shall return to the State an 
amount equal to the total credits claimed under this section for the period from 4 years 
to the end of 5 years after the date the certificate was issued. If credit amounts are 
recaptured after a certificate of approval has been transferred as provided in paragraph 
E, the person receiving the certificate of approval or certificate of completion is 
responsible for payment of any credit amounts that must be returned to the State. The 
amount to be returned to the State under this paragraph is, for purposes of this Title, a 
tax subject to the collection and enforcement provisions contained in Part 1, including 
the application of applicable interest and penalties. The amount to be returned to the 
State must be added to the tax imposed on the taxpayer under this Part for the taxable 
year during which the certificate is revoked.
The commissioner may not issue certificates of approval under this subsection that total, in 
the aggregate, more than $30,000,000 of qualified investment for biotechnology incubators 
and more than $30,000,000 of qualified investment for biomanufacturing facilities, for a 
maximum of $60,000,000 of qualified investment for all certificates of approval.
3.  Refundable credit allowed.  A certified applicant that has received a certificate of 
completion is allowed a refundable tax credit as provided in this subsection.
A.  Subject to the limitations in paragraph D, beginning with the tax year during which 
the certificate of completion is issued or the tax year beginning in 2025, whichever is 
later, and for each of the following 4 tax years, a certified applicant that has made a 
qualified investment in a biotechnology incubator is allowed a credit against the tax 
due under this Part for the taxable year in an amount equal to 6% of the qualified 
investment, up to a total credit of $900,000 in any tax year.  The credit allowed under 
this paragraph is refundable to the extent that the certified applicant does not have tax 
liability in this State for the taxable year, or is not subject to income tax in this State.
B.  Subject to the limitations in paragraph D, beginning with the tax year during which 
the certificate of completion is issued or the tax year beginning in 2025, whichever is 
later, and for each of the following 4 tax years, a certified applicant that has made a 
qualified investment in a biomanufacturing facility is allowed a credit against the tax 
due under this Part for the taxable year in an amount equal to 6% of the qualified 
investment, up to a total credit of $900,000 in any tax year.  The credit allowed under 
this paragraph is refundable to the extent that the certified applicant does not have tax 
liability in this State for the taxable year, or is not subject to income tax in this State.
C.  An individual or owner of a pass-through entity that has received a certificate of 
completion is allowed a refundable credit under this subsection based on the 
individual's or owner's percentage interest in the profits and losses of the pass-through 
entity.  For purposes of this paragraph, "pass-through entity" means a corporation that 
for the applicable tax year is treated, for federal tax purposes, as an S corporation or a 
partnership, trust, limited liability company or similar entity that for the applicable tax 
year is not taxed as a C corporation for federal tax purposes.
D.  The credits under this subsection are limited as follows.
(1)  Except for the first year that the credit is available, the credits available under 
subsection 3, paragraph A may not be taken in any tax year in which more than 
25% of the facility is being used for a purpose other than as a biotechnology 
incubator.
(2)  Except for the first year that the credit is available, the credits available under 
subsection 3, paragraph B may not be taken in any tax year in which more than 
25% of the facility is being used for a purpose other than as a biomanufacturing 
facility.
(3)  Cumulative credits under subsection 3, paragraph A may not exceed 
$4,500,000 for any biotechnology incubator, or $9,000,000 in total for all 
biotechnology incubators.
(4) Cumulative credits under subsection 3, paragraph B may not exceed $4,500,000 
for any biomanufacturing facility, or $9,000,000 in total for all biomanufacturing 
facilities.
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, 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)  For a biotechnology incubator, the percentage of the facility being used as a 
biotechnology incubator, the names of all businesses occupying the facility during 
the report year and a description of their usage and the incremental amount of 
qualified investment made in the report year; and
(2)  For a biomanufacturing facility, the percentage of the facility being used as a 
biomanufacturing facility, the names of all businesses occupying the facility during 
the report year and a description of their usage and the incremental amount of 
qualified investment made in the report year.
The commissioner may prescribe forms for the annual report required by this 
paragraph.  The commissioner shall provide copies of the report at the time the report 
is received to the assessor and to the joint standing committee of the Legislature having 
jurisdiction over taxation matters.
B.  By December 31st of each year, 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 subsection for each taxpayer claiming the credit 
and, if necessary, shall include updated revenue loss amounts for any previous tax year. 
For purposes of this paragraph, "revenue loss" means the credit claimed by a 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, separately identified.
Notwithstanding any other provision of law to the contrary, the reports required by this 
subsection are public records as defined in Title 1, section 402, subsection 3.  
5.  Evaluation; specific public policy objective; 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. The specific public policy objective of the credit provided under this section to 
promote and incentivize the incubation of start-up and early-stage biotechnology 
incubators, biomanufacturing facilities and biotechnology research and product 
development in the State; and
B. Performance measures, including, but not limited to:
(1) The number of start-up and early-stage biotechnology companies that have 
been developed in biotechnology incubators that have been the subject of the credit 
provided by this section, and the successes achieved by these companies in the 
biotechnology field;
(2) The number and general types of biotechnology products manufactured in 
biomanufacturing facilities that have been the subject of the credit provided by this 
section, and the commercial importance of the biomaterials and biomolecules 
produced in those facilities, with sensitivity to the confidential and competitive 
nature of early-stage products; 
(3) The amount of biotechnology research and development taking place in the 
State resulting from subparagraphs (1) and (2); and
(4) Measures of fiscal impact and overall economic impact to the State resulting 
from investments in biotechnology incubators and biomanufacturing facilities. 
6.  Rules.  The commissioner and the assessor may adopt rules to implement the credit 
under this section, including, but not limited to, rules for determining and certifying 
eligibility. Notwithstanding Title 5, section 8071, subsection 3, the commissioner may also 
by rule establish fees for obligations under this section. Any fees collected pursuant to this 
section must be deposited into a special revenue account administered by the 
commissioner, and those fees 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 establishes a refundable Maine income tax credit for investment in 
biotechnology incubators and biomanufacturing facilities.  The amount of the credit is 30% 
of qualified investment, taken in the form of an annual credit of 6% of the qualified 
investment each year for 5 years after a certificate of completion has been issued by the 
Commissioner of Economic and Community Development.  The amount of investment in 
a biotechnology incubator that is eligible for a credit is capped at $15 million for each 
project and $30 million for all projects in total.  The amount of investment in a 
biomanufacturing facility that is eligible for a credit is capped at $15 million for each 
project and $30 million for all projects in total.  The bill also provides for situations in 
which the facilities are no longer being primarily used for the purposes of biotechnology 
incubation or biomanufacturing.