An Act to Expand the Use of Tax Increment Financing District
Maine Legislature, Session 132, LD 1045
Sponsors: KUHN, PIERCE
Amends: 30-A MRSA §5225

Legislative Document
No. 1045
H.P. 674
House of Representatives, March 14, 2025
An Act to Expand the Use of Tax Increment Financing District 
Revenue by Adding Public Safety as an Authorized Project Cost
Received by the Clerk of the House on March 12, 2025.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative KUHN of Falmouth.
Cosponsored by Senator PIERCE of Cumberland and
Representatives: BRIDGEO of Augusta, DHALAC of South Portland, LEE of Auburn, 
MOONEN of Portland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  30-A MRSA §5225, sub-§1, ¶B, as amended by PL 2021, c. 261, §5, is 
further amended by amending subparagraph (1) to read:
(1)  Costs related to the construction, alteration or expansion of any facilities not 
located within the district that are required due to improvements or activities within 
the district, including, but not limited to, sewage treatment plants, water treatment 
plants or other environmental protection devices; storm or sanitary sewer lines; 
water lines; electrical lines; improvements to public safety facilities; and amenities 
on streets;
Sec. 2.  30-A MRSA §5225, sub-§1, ¶B, as amended by PL 2021, c. 261, §5, is 
further amended by enacting a new subparagraph (1-A) to read:
(1-A)  Costs related to the construction, expansion, alteration or operation of and 
improvements to public safety facilities not located within the district that are 
required due to improvements or activities within the district;
Sec. 3.  30-A MRSA §5225, sub-§1, ¶B, as amended by PL 2021, c. 261, §5, is 
further amended by amending subparagraph (2) to read:
(2)  Costs of public safety improvements related to the establishment and operation 
of the district or commercial activities in the district.  These costs include costs 
related to public safety personnel and costs related to the construction, expansion 
or operation of and improvements to public safety facilities and public safety 
equipment;
Sec. 4.  30-A MRSA §5225, sub-§1, ¶C, as amended by PL 2023, c. 142, §§1 to 
3, is further amended by amending subparagraph (9) to read:
(9)  Costs related to the construction, expansion, renovation or operation of 
municipal or plantation public safety facilities, the need for which is related to 
general economic development within the municipality or plantation, not to exceed 
15% 50% of the captured assessed value of the development district;
SUMMARY
This bill amends the law governing the use of tax increment financing district revenue 
for public safety.  It expands the list of project costs for public safety improvements that 
are made outside the tax increment financing district that are authorized project costs.  It 
also adds costs related to the expansion and renovation of municipal or plantation public 
safety facilities to the list of authorized project costs and increases, from 15% to 50%, the 
percentage of tax increment financing district revenue permitted to be used by 
municipalities and plantations for public safety costs related to economic development 
activities.