An Act to Establish a Tax Credit for Employers Who Employ Persons Recovering from Substance Use Disorder
Maine Legislature, Session 131, LD 1900
Committee: Taxation
Sponsors: BRAKEY, POULIOT, BAILEY, BENNETT, MOORE, TIPPING, BOYER
Amends: 5 MRSA §20005, 36 MRSA §191, 36 MRSA §5217-G

Legislative Document
No. 1900
S.P. 772
In Senate, May 9, 2023
An Act to Establish a Tax Credit for Employers Who Employ 
Persons Recovering from Substance Use Disorder
Reference to the Committee on Taxation suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BRAKEY of Androscoggin.
Cosponsored by Senator POULIOT of Kennebec and
Senators: BAILEY of York, BENNETT of Oxford, MOORE of Washington, TIPPING of 
Penobscot, Representative: BOYER of Poland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §20005, sub-§21, as amended by PL 2019, c. 524, §11, is further 
amended to read:
21.  List of banned performance-enhancing substances.  Develop and maintain a list 
of banned performance-enhancing substances in accordance with Title 20‑A, section 6621; 
and
Sec. 2.  5 MRSA §20005, sub-§22, as enacted by PL 2019, c. 524, §12, is amended 
to read:
22.  Certification of recovery residences.  Establish by rule criteria for the 
certification of recovery residences.  The criteria for the certification of recovery residences 
must be based on criteria for recovery residences developed by a nationally recognized 
organization that supports persons recovering from substance use disorder.  Certification 
of a recovery residence pursuant to this subsection is voluntary.  Rules adopted pursuant to 
this subsection are routine technical rules as defined in chapter 375, subchapter 2‑A.; and
Sec. 3.  5 MRSA §20005, sub-§23 is enacted to read:
23.  Certification of persons recovering from substance use disorder and eligibility 
of employers.  Establish by rule a certification process for persons recovering from 
substance use disorder for purposes of the tax credit for employment of persons recovering 
from substance use disorder available pursuant to Title 36, section 5217-G, referred to in 
this subsection as "the tax credit."  The rule must comply with the requirements of this 
subsection.
A. The certification process must establish eligibility requirements for employers 
seeking the tax credit.  The rule must recognize participation in or successful 
completion of substance use disorder treatment programs licensed or certified by the 
department, including those operated by approved treatment facilities and community 
intervention programs, or maintained by other government entities of the State, 
including the Department of Corrections.   
B.  The rule must include an application and certification process for employers of 
persons recovering from substance use disorder seeking the tax credit. The rule must 
provide that a certificate of eligibility may be issued to an employer only after the 
commissioner has determined that the employer:
(1) Provides a recovery-supportive environment for its employees as evidenced by 
a formal working relationship with a local recovery or treatment provider certified 
by the department to provide support for employers, including any necessary 
assistance in the hiring of eligible persons recovering from substance use disorder 
and training for employers or supervisors; and  
(2)  Fulfills the eligibility criteria established by the department pursuant to this 
subsection for the recovery tax credit established in Title 36, section 5217-G.
Rules adopted pursuant to this subsection are routine technical rules pursuant to chapter 
375, subchapter 2-A.
Sec. 4.  36 MRSA §191, sub-§2, ¶SSS is enacted to read:
SSS.  The disclosure of information to the Department of Health and Human Services, 
Office of Behavioral Health necessary for the administration of the tax credit for 
employment of persons in recovery from substance use disorder pursuant to section 
5217‑G.
Sec. 5.  36 MRSA §5217-G is enacted to read:
§5217-G.  Tax credit for employment of persons in recovery
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
A. "Certificate of eligibility" means a certificate issued to an employer by the 
Department of Health and Human Services pursuant to Title 5, section 20005, 
subsection 23.
B. "Certified employer" means an employer that has received a certificate of tax credit 
from the assessor pursuant to subsection 4.
C.  "Eligible employee" means an individual with substance use disorder who:
(1) Is in a state of wellness;
(2) Is participating in or has successfully completed a substance use disorder 
treatment program certified by the Department of Health and Human Services 
pursuant to Title 5, section 20005, subsection 23; and
(3) Has worked in this State for a minimum of 500 hours for a certified employer.
D.  "Substance use disorder" means a diagnosis related to alcohol or drug use covered 
by Title 5, chapter 521.
2.  Credit.  For tax years beginning on or after January 1, 2024, a certified employer is 
allowed a credit against the tax imposed by this Part in accordance with the provisions of 
this section.  The maximum amount of the credit is $2,000 per eligible employee, as 
determined by the assessor pursuant to subsection 4 and as limited by this subsection and 
subsection 5.
A.  A certified employer is allowed a tax credit equal to the product of $1 and the 
number of hours worked by each eligible employee during that eligible employee's 
period of employment, up to a maximum of 2,000 hours.
B.  A certified employer may claim a tax credit for each eligible employee beginning 
on the day the employee reaches 500 hours worked for that certified employer and 
ending on December 31st of the immediately succeeding calendar year or the last day 
of the employee's employment by the certified employer, whichever comes first.
C. If an eligible employee does not work 2,000 hours by December 31st, a certified 
employer may compute the credit for that tax year based on the number of hours 
worked by that eligible employee by December 31st of that tax year or may elect to 
include the eligible employee in the computation of the tax credit for the immediately 
succeeding tax year.
D.  In no event may an eligible employee generate a tax credit for hours worked in 
excess of 2,000 hours.
E.  A certified employer may claim a tax credit only once with respect to any eligible 
employee and may not aggregate the hours of 2 or more employees to reach the 
minimum number of hours.
3.  Application process.  To be eligible for the tax credit under this section, an 
employer must:
A. Obtain a certificate of eligibility from the Department of Health and Human 
Services;
B.  Apply no later than January 15th annually to the assessor, on a form provided by 
the assessor, to be a certified employer and provide the certificate of eligibility obtained 
pursuant to paragraph A and all information, including the number of hours worked by 
any eligible employee, required by the assessor to compute an actual amount of credit 
allowed; and
C. Agree to allow the assessor to share the employer's tax information with the 
Department of Health and Human Services, Office of Behavioral Health. Information 
shared pursuant to this paragraph is confidential and not subject to the Freedom of 
Access Act.
4. Determination of amount of credit.  The assessor shall review an application 
received pursuant to subsection 3 and, if the assessor finds the application sufficient, shall 
issue a certificate of tax credit by March 31st.  The certificate must include, but is not 
limited to:
A.  The name and employer identification number of the certified employer;
B. The amount of credit that the certified employer may claim; and
C.  Any other information the assessor determines is necessary.
In determining the amount of tax credit that a certified employer may claim, the assessor 
shall review all claims submitted for the tax credit under this section by all certified 
employers and, to the extent that the total amount claimed by certified employers exceeds 
the amount allocated for the tax credit in that tax year pursuant to subsection 5, paragraph 
A, shall issue tax credits on a pro rata basis corresponding to each certified employer's share 
of the total claimed amount.
5. Limitations.  The tax credit under this section for any tax year is limited as follows.
A. The total tax credit available is limited to $2,000,000 per tax year.
B.  The amount of the tax credit that may be issued to a certified employer is limited 
to the tax due.
C.  Any unused tax credit may be carried over to the following year or years for a 
period not to exceed 7 years, including the year the tax credit was first taken, and may 
be deducted from the certified employer's tax for that year or years, subject to the 
limitations of this subsection.
D.  There is no carry-back to prior years of the amount of tax credit allowable.
6.  Relapse by eligible employee.  An eligible employee who relapses in treatment for 
substance use disorder is not immediately disqualified from being an eligible employee if 
the individual shows a continued commitment to recovery that aligns with the individual's 
relapse prevention plan, discharge plan or recovery plan.
SUMMARY
This bill provides for a tax credit for employers who employ persons recovering from 
substance use disorder who are completing or have successfully completed a substance use 
disorder treatment program certified by the Department of Health and Human Services.  
The Department of Health and Human Services is required to establish a certification 
process for employers.  A certified employer, in order to receive the tax credit, is required 
to apply to the State Tax Assessor for the tax credit.
The tax credit is available with respect to an employee who has been employed with 
the employer for at least 500 hours.  The credit is calculated by multiplying the number of 
hours, above the 500 hours from date of hire, worked by the employee by $1, except that 
the credit may not exceed $2,000 for each eligible employee.  The credit may be claimed 
only once per employee. The credit is further limited by a total allocation of credit of 
$2,000,000 per year.