An Act to Promote Food Processing and Manufacturing Facility
Maine Legislature, Session 132, LD 1951
Committee: Taxation
Sponsors: STEWART, UNDERWOOD
Amends: 36 MRSA §5219-V

Legislative Document
No. 1951
S.P. 758
In Senate, May 7, 2025
An Act to Promote Food Processing and Manufacturing Facility 
Expansion and Create Jobs
Reference to the Committee on Taxation suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator STEWART of Aroostook.
Cosponsored by Representative UNDERWOOD of Presque Isle and
Senator: BERNARD of Aroostook, Representatives: ALBERT of Madawaska, ARDELL of 
Monticello, BABIN of Fort Fairfield, DAIGLE of Fort Kent, GUERRETTE of Caribou, 
SWALLOW of Houlton.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §5219-VV, sub-§1, ¶H, as enacted by PL 2019, c. 386, §2, is 
repealed.
Sec. 2.  36 MRSA §5219-VV, sub-§1, ¶J, as enacted by PL 2019, c. 386, §2, is 
amended by repealing subparagraph (1).
Sec. 3.  36 MRSA §5219-VV, sub-§1, ¶J, as enacted by PL 2019, c. 386, §2, is 
amended by amending subparagraph (4) to read:
(4)  The applicant employs or will employ upon within 12 months of the start-up 
of the facility at least 40 full-time employees based in the State; and
Sec. 4.  36 MRSA §5219-VV, sub-§1, ¶J, as enacted by PL 2019, c. 386, §2, is 
amended by amending subparagraph (5) to read:
(5)  The annual income derived from employment with the applicant of at least 
75% of the applicant's employees who have been employed by the applicant for at 
least 12 months exceeds the most recent annual per capita personal income in the 
county in which the facility is located.
Sec. 5.  36 MRSA §5219-VV, sub-§1, ¶K, as amended by PL 2019, c. 659, Pt. H, 
§2, is further amended to read:
K.  "Qualified investment" means an expenditure of at least $35,000,000 to design, 
permit, construct, modify, equip or expand the applicant's facility in the State.  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.  A qualified investment does not include an 
expenditure made prior to April 1, 2019 or after December 31, 2024 2027.
Sec. 6.  36 MRSA §5219-VV, sub-§2, ¶E, as amended by PL 2019, c. 659, Pt. H, 
§4, is further amended to read:
E.  A certified applicant shall submit an application to the commissioner for a certificate 
of completion.  If the commissioner determines that the certified applicant has made a 
qualified investment and determines that, at the time the application for a certificate of 
completion is submitted, the certified applicant is itself, or is the parent or subsidiary 
of, an entity that satisfies all of the criteria in subsection 1, paragraph J, subparagraphs 
(1) and (5), the commissioner shall issue a certificate of completion to the certified 
applicant as soon as is practical.  The certificate of completion must state the amount 
of qualified investment made by the certified applicant.
Sec. 7.  36 MRSA §5219-VV, sub-§2, as amended by PL 2019, c. 659, Pt. H, §§3 
and 4, is further amended by amending the first blocked paragraph to read:
The commissioner may not issue certificates of approval under this subsection that total, in 
the aggregate, more than $100,000,000 $200,000,000 of qualified investment or any 
individual certificate of approval for more than $85,000,000 $100,000,000 of qualified 
investment.
Sec. 8.  36 MRSA §5219-VV, sub-§3, ¶A, as enacted by PL 2019, c. 386, §2, is 
amended to read:
A.  Subject to the limitations under paragraph B, beginning with the first full tax year 
after the certified applicant has been issued a certificate of completion under subsection 
2, paragraph E or the tax year beginning on January 1, 2022, whichever is later, and 
for each of the following 19 tax years, a certified applicant is allowed a credit against 
the tax due under this Part for the taxable year in an amount equal to 1.8% of the 
certified applicant's qualified investment, except that, for a tax year beginning on or 
after January 1, 2027, a certified applicant is allowed a credit against the tax due under 
this Part for the taxable year in an amount equal to 2% of the certified applicant's 
qualified investment.  A certified applicant may not claim a credit under this subsection 
for more than 20 years.  If the certified applicant is a pass-through entity, the owner or 
owners of the certified applicant are allowed the credit.  The credit allowed under this 
paragraph is refundable.
Sec. 9.  36 MRSA §5219-VV, sub-§3, ¶B, as amended by PL 2019, c. 659, Pt. H, 
§5, is further amended by repealing subparagraph (2).
Sec. 10.  36 MRSA §5219-VV, sub-§3, ¶B, as amended by PL 2019, c. 659, Pt. 
H, §5, is further amended by repealing subparagraph (4), division (a).
Sec. 11.  36 MRSA §5219-VV, sub-§3, ¶B, as amended by PL 2019, c. 659, Pt. 
H, §5, is further amended by amending subparagraph (4), division (c) to read:
(c)  The annual income derived from employment with the certified applicant 
of at least 75% of the certified applicant's employees who have been employed 
by the certified applicant for at least 12 months exceeds the most recent annual 
per capita personal income in the county in which the facility is located.
SUMMARY
This bill amends the laws governing the income tax credit for major food processing 
and manufacturing facility expansion in the following ways.
1.  It removes the requirement that an applicant's headquarters are, and have been for 
each of the last 5 years prior to application for a certificate of approval, located in the State.
2.  It requires that an applicant employ or will employ within 12 months of the start-up 
of the facility at least 40 full-time employees based in the State. Current law requires that 
an applicant employ or will employ upon start-up of the facility at least 40 full-time 
employees based in the State.
3.  It changes the criteria to be considered a qualified and certified applicant.
4.  It increases the total value of certificates of approval that the Commissioner of 
Economic and Community Development may issue from $100,000,000 to $200,000,000.  
It also increases the cap on an individual certificate of approval from $85,000,000 to 
$100,000,000.
5.  For a tax year beginning on or after January 1, 2027, it increases the amount of the 
credit a certified applicant is allowed from an amount equal to 1.8% of the certified 
applicant's qualified investment to an amount equal to 2% of the certified applicant's 
qualified investment.
6.  It removes the provision that provides that a credit is not allowed for any tax year 
following 2 consecutive tax years during which a certified applicant did not have between 
$5,500,000 and $12,000,000 in ordinary business income.