An Act to Authorize the Use of Tax Increment Financing Funds for Constructing or Renovating Municipal Offices and Other Municipal Buildings
Maine Legislature, Session 131, LD 0286
Committee: Taxation
Sponsors: CARLOW, INGWERSEN, ANKELES, BLIER, CAMPBELL, CARMICHAEL, HASENFUS, BAILEY, GROHOSKI
Amends: 30-A MRSA §5225

Legislative Document
No. 286
H.P. 184
House of Representatives, January 27, 2023
An Act to Authorize the Use of Tax Increment Financing Funds for 
Constructing or Renovating Municipal Offices and Other Municipal 
Buildings
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative CARLOW of Buxton.
Cosponsored by Senator INGWERSEN of York and
Representatives: ANKELES of Brunswick, BLIER of Buxton, CAMPBELL of Orrington, 
CARMICHAEL of Greenbush, HASENFUS of Readfield, Senators: BAILEY of York, 
GROHOSKI of Hancock.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  30-A MRSA §5225, sub-§1, ¶D, as amended by PL 2021, c. 261, §7, is 
further amended to read:
D.  Costs of constructing or improving facilities or buildings leased by State 
Government or a municipal or plantation government that are located in approved 
downtown tax increment financing districts; and
Sec. 2.  30-A MRSA §5225, sub-§1, ¶E, as enacted by PL 2021, c. 261, §8, is 
amended to read:
E.  Costs associated with the development and operation of affordable housing or 
housing services for persons who are experiencing homelessness as defined in the 
municipality's or plantation's development program.; and
Sec. 3.  30-A MRSA §5225, sub-§1, ¶F is enacted to read:
F.  Costs of construction or renovation of municipal offices or other municipal 
buildings when, in the determination of the legislative body of the municipality, 
conditions exist that impair the proper functioning of government or otherwise hinder 
the vitality of the local economy; however, the costs may not exceed 10% of the total 
current assessed value of the tax increment financing district or $3,000,000, whichever 
is less, during a 20-year period for any one tax increment financing district.
Sec. 4.  30-A MRSA §5225, sub-§2, as amended by PL 2019, c. 148, §4, is further 
amended to read:
2.  Unauthorized project costs.  Except as provided in subsection 1, paragraph C, 
subparagraph (9) and subsection 1, paragraph paragraphs D and F, the commissioner may 
not approve as a project cost the cost of facilities, buildings or portions of buildings used 
predominantly for the general conduct of government or for public recreational purposes, 
including, but not limited to, city halls and other headquarters of government where the 
governing body meets regularly, courthouses, jails and other state and local government 
office buildings, recreation centers, athletic fields and swimming pools.
SUMMARY
This bill permits revenue from tax increment financing districts to be used for the 
construction or renovation of municipal offices or other municipal buildings when the 
legislative body of the municipality determines that certain conditions are met.  The bill 
limits the revenue that may be used for these purposes during a 20-year period for any one 
tax increment financing district.