An Act to Allow for
Maine Legislature, Session 132, LD 2044
Committee Amendment CA_A_S639 (Senate)
Amends: 36 MRSA §5219-X

COMMITTEE AMENDMENT " f\ " to S.P. 837, L.D. 2044, "An Act to Allow for
the Transferability of the Biofael Production and Renewable Chemicals Tax Credits"
Amend the bill by striking out the title and substihiting the following:
'An Act to Make the Biofuel Commercial Production and Commercial Use Tax Credit
and the Renewable Chemicals Tax Credit Refundable'
Amend the bill by striking out everything after the enacting clause and inserting the
following;
'See. 1. 36 MRSA §S219-X, sub-§3, as amended by PL 2007,c.426,§ 1, is further
amended to read:
3. Limitations. A person entitled to a credit under this section for any taxable year
may carry over and apply the portion of any unused credits to the tax liability on income
derived from the production of biofuel for any one or more of the next succeeding 10
taxable years. The credit allowed, including canyovers, may not reduce the tax otherwise
due under this Part to less than zero. A person may be allowed a credit under subsection 2
for a period not to exceed 10 consecutive taxable years as of the first tax year beeinnine on
or after January 1. 2021 for which the credit is allowed,
See. 2. 36 MRSA §5219-X, sub-§3-A is enacted to read:
3-A. Refundable credit. Notwithstandine subsection 3. for tax years beainnine on or
after January I. 2027. a credit allowed under subsection 2 is refundable up to the amount
of the credit eenerated durina the taxable year plus any unused carrv-over credit amounts
generated and claimed on a timely filed Maine income tax return for tax years 2021.2022,
2023.2024.2025 and 2026.
Sec. 3. 36 MRSA §5219-X, sub-§6, as enacted by PL 2021,c. 181, Pt. A,§12, is
amended to read:
6. Reporting. A taxpayer allowed a credit under subsection 2 shall report to the
Department of Economic and Community Development, for each tax credit awarded, the
COMMITTEE AMENDMENT
.^ ^ ^ COMMITTEE AMENDMENT " f\ " to S.P. 837, L.D. 2044 f S <
I dollar amount of the tax credit, the number of full-time and part-time direct manufacturing
jobs created and the dollar amount of capital investment in manufacturing.
See. 4. 36 MRSA §5219-XX, sub-§3, as amended by PL 2021,c. 181,Pt. A, §13,
is further amended to read:
3. Reporting. A taxpayer allowed a credit under subsection 2 shall report to the
Department of Economic and Community Development, for each tax credit awarded, the
dollar amount of the tax credit, the number of full-time and part-time direct manufacturing
jobs created and the dollar amount of capital investment in manufacturing.
See. 5. 36 MRSA §5219-XX, sub-§4, as enacted by PL 2019, c. 628, §3, is
amended to read:
4. Limitation. A person entitled to a tax credit under this section for any taxable year
may carry over and apply the portion of any unused credits to the tax liability on income
derived from the production of renewable chemicals for any one or more of the next
succeeding 10 taxable years. The credit allowed, including carry overs, may not reduce the
tax otherwise due under this Part to less than zero. A person may be allowed a credit under
subsection 2for a period not to exceed 10 consecutive taxable years as of the first tax year
beeinnine on or after January 1.202 1 for which the credit is allowed.
Sec. 6. 36 MRSA §5219-XX, sub-§4-A is enacted to read:
4-A. Refundable credit. Notwithstanding subsection 4. for tax years beeinnine on or
after January 1.2027. a credit allowed under subsection 2 is refundable no to the amount
of the credit eenerated durinp the taxable year plus any unused carry-over credit amounts
eenerated and claimed on a timely filed Maine income tax return for tax years 2021.2022.
2023.2024.2025 and 2026.
Sec. 7. Appropriations and allocations. The following appropriations and
allocations are made.
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
Revenue Services, Bureau of 0002
Initiative: Provides one-time funding for administrative expenses to update systems,
perform testing and implement processing changes to change the credit from nonrefundable
to refundable for the individual, composite, fiduciary and corporate income tax types.
GENERAL FUND 2025-26 2026-27
AllOther $0 $117,370
GENERAL FUND TOTAL $0 $117,370
Sec. 8. Report. On or before December 31,2031, the Depaitment of Economic and
Community Development shall submit a report to the joint standing committee of the
Legislature having jurisdiction over taxation matters on the information provided by
taxpayers pursuant to the Maine Revised Statutes, Title 36, section 5219-X, subsection 6
and Title 36, section 5219-XX, subsection 3 for tax years 2027,2028,2029 and 2030. The
joint standing committee may report out legislation based on the report.'
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively.
Page2-132LR2729(02)
COMMITTEE AMENDMENT
-^ 0^ p COMMIITBE AMENDMENT " ^ " lo S.P. 837, L.D, 2044 f ^
SUMMARY
This amendment replaces the bill, changes the title and amends the tax laws by making
the biofael commercial production and commercial use tax credit and the renewable
chemicals tax credit refundable for tax years beginning on or after January 1, 2027. The
amendment limits a person's eligibility to generate a credit under the Maine Revised
Statutes, Title 36, sections 5219-X and 5219-XX to a period not to exceed 10 consecutive
taxable years as of the first tax year beginning on or after January 1, 2021 for which the
credit is allowed. The amendment requires the Department of Economic and Community
Development to report to the joint standing committee of the Legislature having
jurisdiction over taxation matters 5 years after the credits become refundable and authorizes
the committee to report out legislation related to the credits allowed under Title 36, sections
5219-X and 5219-XX after receiving the report,
FISCAL NOTE REQUIRED
(See attached)
COMMITTEE AMENDMENT
Approved: 04/02/26 t-Ki-
LD 2044 LR 2729(02)
An Act to Allow for the Transferability of the Biofuel Production and Renewable Chemicals Tax
Credits
Fiscal Note for Bill as Amended by Committee Amendment '3.'/'«
Committee: Taxation
Fiscal Note Required: Yes
Fiscal Note
Projections Projections
PY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
Net Cost (Savings)
General Fund
Appropriations/AUoc&fions
General Fund
$0
$0
$117,370
$117,370
$95,000
$0
$950,000
>pU
Revenue
General Fund
Other Special Revenue Funds
$0
$0
$0
$0
($95,000)
($5,000)
($950,000)
($50,000)
Fiscal Detail and Notes
This bill would result in a revenue decrease to the General Fund of $95,000 in fiscal year 2027-28 and $950,000 in
fiscal year 2028-29 by making the biofuel commercial production and commercial use tax credit and the renewable
chemicals tax credit refundable, The bill would also result in a revenue decrease to the Local Government Fund of
$5,000 in fiscal year 2027-28 and $50,000 in fiscal year 2028-29, The bill includes a one-time General Fund
appropriation to the Department of Administrative and Financial Services, Bureau of Revenue Services of $117,370 in
fiscal year 2026-27 for administrative costs.
Any additional costs to the Department ofBconomic and Community Development are assumed to be minor and can
be absorbed withing existing budgeted resources.
LR2729(02) - Fiscal Note - Page 1 of 1