Amend the bill in Part D in section 6 in §185-A in subsection 1 in the 5th and 6th lines (page 5, lines 34 and 35 in L.D.) by striking out the following: " any refund to which the person is entitled under this Title" and inserting the following: ' any amount due to the person under this Title, except for amounts due to that person under Part 2 of this Title'
Amend the bill in Part D in section 6 in §185-A in subsection 5 in the first 2 lines (page 6, lines 19 and 20 in L.D.) by striking out the following: " pursuant to this section as to the existence of a liquidated debt" and inserting the following: ' in a hearing pursuant to subsection 2'
Amend the bill in Part G in section 1 in the last line (page 11, line 35 in L.D.) by striking out the following: " granted the taxpayer"
Amend the bill in Part G by striking out all of section 2 and inserting the following:
Amend the bill by striking out all of Part H.
PART I
‘
Sec. I-1. 36 MRSA §5219-VV, sub-§1, ¶F, as enacted by PL 2019, c. 386, §2, is amended to read:
F. "Facility" means a food processing and manufacturing facility, plant or mill, including one or more structures and including the equipment, machinery, fixtures and personal property located in, on, over, under and adjacent to those structures, by which the applicant, as determined by the commissioner at the time of application, processes, produces and manufactures food from agricultural products primarily grown and harvested in the State.
Sec. I-2. 36 MRSA §5219-VV, sub-§1, ¶K, as enacted by PL 2019, c. 386, §2, is amended to read:
K. "Qualified investment" means an investment expenditure of at least $35,000,000 to design, permit, construct, modify, equip or expand the applicant's facility in the State. The investments and activities expenditures of a qualified applicant and other entities that are members of the qualified applicant's unitary business may , 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 investment expenditure made prior to April 1, 2019 or after December 31, 2024.
Sec. I-3. 36 MRSA §5219-VV, sub-§2, ¶D, as enacted by PL 2019, c. 386, §2, is amended to read:
D. The commissioner shall revoke a certificate of approval if the certified applicant or a person to whom a certificate of approval has been transferred pursuant to paragraph C fails to make a qualified investment within 5 years of the date of the certificate of approval. The commissioner shall revoke a certificate of approval or a certificate of completion under paragraph E if the applicant or transferee ceases operations of the facility in the State or the certificate of approval or certificate of completion is transferred to another person without approval from the commissioner pursuant to paragraph C. A certified applicant whose certificate of completion is revoked within 5 years after the date issued shall return within 60 days following revocation of the certificate to the State an amount equal to the total credits claimed for all tax years under this section. A certified applicant whose certificate of completion is revoked during the period from 6 years after through 10 years after the date the certificate was issued shall return within 60 days following revocation of the certificate to the State an amount equal to the total credits claimed under this section for the period from 6 years after through 10 years after the date the certificate was issued. The amount to be returned to the State under this paragraph is, for purposes of this Title, a tax subject to the collection and enforcement provisions contained in Part 1, including the application of applicable interest and penalties. The amount to be returned to the State must be added to the tax imposed on the taxpayer under this Part for the taxable year during which the certificate is revoked. An applicant whose certificate of approval or certificate of completion has been revoked pursuant to this paragraph is not eligible for the tax credit under this section for the tax year in which the certificate is revoked and any year after that.
Sec. I-4. 36 MRSA §5219-VV, sub-§2, ¶E, as enacted by PL 2019, c. 386, §2, is 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 satisfied the facility and employment 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. I-5. 36 MRSA §5219-VV, sub-§3, ¶B, as enacted by PL 2019, c. 386, §2, is amended to read:
B.
The credit under this subsection is limited as follows.
(1) A credit is not allowed for any tax year during which the taxpayer does not meet or exceed the following employment targets as measured on the last day of the tax year.
(a) For each of the first 3 tax years for which the credit is claimed, there must be a total of at least 40 full-time employees based in the State above the certified applicant's base level of employment whose jobs were added since the first day of the first tax year for in which the credit was claimed certificate of approval was issued.
(b) For each tax year after the 3rd tax year for which the credit is claimed, the taxpayer must employ a total of at least 60 full-time employees based in the State above the certified applicant's base level of employment whose jobs were added since the first day of the first tax year for in which the credit was claimed certificate of approval was issued.
Jobs for additional full-time employees that are counted for determining eligibility for the credit under one certificate of completion under subsection 2, paragraph E may not be counted for determining eligibility for the credit under a separate certificate of completion. For purposes of this subparagraph, "additional full-time employees" does not include employees who are shifted to a certified applicant's facility in the State from an affiliated business in the State. The commissioner shall determine whether a shifting of employees has occurred. For purposes of this subparagraph, "affiliated business" has the same meaning as in section 6753, subsection 1-A.
(2) A credit is not allowed for any tax year following 2 consecutive tax years during which the certified applicant did not have between $5,500,000 and $12,000,000 in ordinary business income.
(3) Cumulative credits under this subsection may not exceed $34,000,000 $30,600,000 under any one certificate.
(4) A credit is not allowed for any tax year during which the certified applicant does not satisfy all of the following criteria:
(a) The certified applicant's headquarters are located in the State;
(b) The certified applicant has a facility in the State; and
(c) The annual income derived from employment with the certified applicant of at least 75% of the certified applicant's employees exceeds the most recent annual per capita personal income in the county in which the facility is located.
For purposes of this subparagraph, "certified applicant" includes the parent or subsidiary of the certified applicant.
Sec. I-6. 36 MRSA §5219-VV, sub-§5, ¶A, as enacted by PL 2019, c. 386, §2, is amended by amending subparagraph (1) to read:
A.
On or before March 1st of each year, a certified applicant shall file a report with the commissioner for the tax year ending during the immediately preceding calendar year, referred to in this paragraph as "the report year," containing the following information:
(1) The number of full-time employees based in the State of the certified applicant on the last day of the tax year ending during the calendar year immediately preceding the report year; and
(2) The incremental amount of qualified investment made in the report year.
The commissioner may prescribe forms for the annual report described in this paragraph. The commissioner shall provide copies of the report to the assessor, to the Office of Program Evaluation and Government Accountability and to the joint standing committee of the Legislature having jurisdiction over taxation matters at the time the report is received.
PART J
Sec. J-1. 36 MRSA §5122, sub-§2, ¶OO, as amended by PL 2019, c. 527, Pt. A, §1, is further amended to read:
OO.
For taxable years beginning on or after January 1, 2016 and before January 1, 2020, an amount equal to the net increase in the depreciation deduction allowable under the Code, Sections 167 and 168 that would have been applicable to that property had the depreciation deduction under the Code, Section 168(k) not been claimed with respect to such property placed in service during the any taxable year beginning on or after January 1, 2015 but before January 1, 2020 for which an addition was required under subsection 1, paragraph KK, subparagraph (2) for the taxable year.Upon the taxable disposition of property to which this paragraph applies, the amount of any gain or loss includable in federal adjusted gross income must be adjusted for Maine income tax purposes by an amount equal to the difference between the addition modification for such property under subsection 1, paragraph KK, subparagraph (2) and the subtraction modifications allowed pursuant to this paragraph.
The total amount of subtraction claimed under this paragraph for all tax years may not exceed the addition modification under subsection 1, paragraph KK, subparagraph (2) for the same property.
Sec. J-2. 36 MRSA §5200-A, sub-§2, ¶AA, as amended by PL 2019, c. 527, Pt. A, §3, is further amended to read:
AA.
For taxable years beginning on or after January 1, 2016 and before January 1, 2020, an amount equal to the net increase in the depreciation deduction allowable under the Code, Sections 167 and 168 that would have been applicable to that property had the depreciation deduction under the Code, Section 168(k) not been claimed with respect to such property placed in service during the any taxable year beginning on or after January 1, 2015 but before January 1, 2020 for which an addition was required under subsection 1, paragraph CC, subparagraph (2) for the taxable year.Upon the taxable disposition of property to which this paragraph applies, the amount of any gain or loss includable in federal taxable income must be adjusted for Maine income tax purposes by an amount equal to the difference between the addition modification for such property under subsection 1, paragraph CC, subparagraph (2) and the subtraction modifications allowed pursuant to this paragraph.
The total amount of subtraction claimed under this paragraph for all tax years may not exceed the addition modification under subsection 1, paragraph CC, subparagraph (2) for the same property.
PART K
Sec. K-1. 30-A MRSA §4722, sub-§1, ¶DD, as corrected by RR 2017, c. 1, §24, is amended by amending subparagraph (4) to read:
DD.
Certify affordable housing projects for the purpose of the income tax credit increase under Title 36, section 5219-BB, subsection 3; administer and enforce the affordability requirements set forth in this paragraph; and perform other functions described in this paragraph and necessary to the powers and duties described in this paragraph.
(1) For purposes of this paragraph, unless the context otherwise indicates, the following terms have the following meanings.
(a) "Affordable housing" means a decent, safe and sanitary dwelling, apartment or other living accommodation for a household whose income does not exceed 60% of the median income for the area as defined by the United States Department of Housing and Urban Development under the United States Housing Act of 1937, Public Law 75-412, 50 Stat. 888, Section 8, as amended.
(b) "Affordable housing project" means a project in which:
(i) At least 50% of the aggregate square feet of the completed project is housing of which at least 50% of the aggregate square feet of the completed housing creates new affordable housing; or
(ii) At least 33% of the aggregate square feet of the completed project creates new affordable housing.
(2) An affordable housing project for which the owner of the property received the income tax credit increase under Title 36, section 5219-BB, subsection 3 must remain an affordable housing project for 30 years from the date the affordable housing project is placed in service. If the property does not remain an affordable housing project for 30 years from the date the affordable housing project is placed in service, the owner of the property shall pay to the Maine State Housing Authority for application to the Housing Opportunities for Maine Fund established under section 4853 an amount equal to the income tax credit increase allowed under Title 36, section 5219-BB, subsection 3, plus interest on that amount at the rate of 7% per annum from the date the property is placed in service until the date of payment of all amounts due. The affordability requirements and the repayment obligation in this subparagraph must be set forth in a restrictive covenant executed by the owner of the property and the affordable housing project for the benefit of and enforceable by the Maine State Housing Authority and recorded in the appropriate registry of deeds before the owner of the property claims the income tax credit increase under Title 36, section 5219-BB, subsection 3.
(3) If the repayment obligation in subparagraph (2) is not fully satisfied after written notice is sent by certified mail or registered mail to the owner of the property at the owner's last known address, the Maine State Housing Authority may file a notice of lien in the registry of deeds of the county in which the real property subject to the lien is located. The notice of lien must specify the amount and interest due, the name and last known address of the owner, a description of the property subject to the lien and the Maine State Housing Authority's address and the name and address of its attorney, if any. The Maine State Housing Authority shall send a copy of the notice of lien filed in the registry by certified mail or registered mail to the owner of the property at the owner's last known address and to any person who has a security interest, mortgage, lien, encumbrance or other interest in the property that is properly recorded in the registry of deeds in which the property is located. The lien arises and becomes perfected at the time the notice is filed in the appropriate registry of deeds in accordance with this subparagraph. The lien constitutes a lien on all property with respect to which the owner receives the income tax credit increase under Title 36, section 5219-BB, subsection 3 and the proceeds of any disposition of the property that occurs after notice to the owner of the repayment obligation. The lien is prior to any mortgage and security interest, lien, restrictive covenant or other encumbrance recorded, filed or otherwise perfected after the notice of lien is filed in the appropriate registry of deeds. The lien may be enforced by a turnover or sale order in accordance with Title 14, section 3131 or any other manner in which a judgment lien may be enforced under the law. The lien must be in the amount of the income tax credit increase allowed under Title 36, section 5219-BB, subsection 3, plus interest on that amount at the rate of 7% per annum from the date the property is placed in service until the date of payment of all amounts due. Upon receipt of payment of all amounts due under the lien, the Maine State Housing Authority shall execute a discharge lien for filing in the registry or offices in which the notice of lien was filed.
(4) Annually by every August 1st until and including August 1, 2023 2025, the Maine State Housing Authority shall review the report issued pursuant to Title 27, section 511, subsection 5, paragraph A to determine the percentage of the total aggregate square feet of completed projects that constitutes new affordable housing, rehabilitated and developed using:
(a) Either of the income tax credits under Title 36, section 5219-BB, subsection 2; and
(b) The income tax credit increase under Title 36, section 5219-BB, subsection 3.
If the total aggregate square feet of new affordable housing does not equal or exceed 30% of the total aggregate square feet of rehabilitated and developed completed projects eligible for a credit under Title 36, section 5219-BB, the Maine State Housing Authority and Maine Historic Preservation Commission shall notify the State Tax Assessor of this fact;
Sec. K-2. 36 MRSA §5219-BB, sub-§1, ¶C, as amended by PL 2011, c. 453, §7, is further amended to read:
C.
"Certified qualified rehabilitation expenditure" means a qualified rehabilitation expenditure, as defined by the Code, Section 47(c)(2), made between on or after January 1, 2008 and December 31, 2023. For purposes of subsection 2, paragraph B, qualified rehabilitation expenditures incurred in the certified rehabilitation of a certified historic structure located in the State do not include a requirement that the certified historic structure be substantially rehabilitated. with respect to a certified historic structure, if:
(1) For credits claimed under subsection 2, paragraph A, the United States Department of the Interior, National Park Service issues a determination on or before December 31, 2025 that the proposed rehabilitation of that structure meets the Secretary of the Interior's standards for rehabilitation, with or without conditions; or
(2) For credits claimed under subsection 2, paragraph B, the Maine Historic Preservation Commission issues a determination on or before December 31, 2025 that the proposed rehabilitation of that structure meets the Secretary of the Interior's standards for rehabilitation, with or without conditions.
For purposes of subsection 2, paragraph B, qualified rehabilitation expenditures incurred in the certified rehabilitation of a certified historic structure located in the State do not include a requirement that the certified historic structure be substantially rehabilitated.
Sec. K-3. 36 MRSA §5219-BB, sub-§2, as amended by PL 2011, c. 240, §38 and c. 453, §8, is further amended to read:
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section number to read consecutively.
This amendment does the following.
1. It excludes amounts due pursuant to the Maine Revised Statutes, Title 36, Part 2 from the refund offset expansion in the bill and clarifies a taxpayer's appeal rights during the process.
2. It clarifies the effect of a federal income tax extension on the state income tax filing dates.
3. It strikes Part H of the bill, which makes changes to the real estate transfer tax.
4. It makes the following changes to the credit for major food processing and manufacturing facility expansion.
A. It clarifies that the requirement for a facility to process, produce and manufacture food from agricultural products primarily grown and harvested in the State is an ongoing requirement.
B. It clarifies that 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.
C. It clarifies that jobs that must be added in order to qualify for the credit must be added after the first day of the year in which the certificate of approval was issued.
D. It clarifies that the headquarters and facility of a certified applicant or of a parent or subsidiary of the certified applicant, must be located in the State and that the annual income of at least 75% of the certified applicant's employees must exceed the most recent annual per capita personal income in the county in which the facility is located in order for the applicant to qualify for a certificate of completion or the credit.
5. It clarifies that property placed in service during tax years beginning on or after January 1, 2015 but before January 1, 2020 for which a bonus depreciation addition modification was required and for which the Maine capital investment credit was not claimed is eligible for a depreciation subtraction modification in tax years beginning after 2019 to allow the taxpayer to fully claim depreciation on that property over the class life of the property for Maine income tax purposes.
6. It extends the credit for rehabilitation of historic properties from allowing a credit for qualified rehabilitation expenditures made prior to December 31, 2023 to allowing a credit for qualified rehabilitation expenditures made by certified project if the Maine Historic Preservation Commission or the United States Department of the Interior, National Park Service, as required, issues a determination on or before December 31, 2025 that the proposed rehabilitation of that structure meets the Secretary of the Interior's standards for rehabilitation.