Sec. 3. 36 MRSA §5219-Y is enacted to read:

§5219-Y.__Brewery employment tax credit

1.__Definitions.__ As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

A.__"Base year" means calendar year 2005 or the first year a brewer is in business, whichever is later.

B.__"Brewer" means a person who produces malt liquor.

C.__"Malt liquor" means liquor produced by the fermentation of malt, wholly or partially, or from any malt substitute, that contains 1/2 of 1% of alcohol or more by volume. "Malt liquor" includes, but is not limited to, ale, beer, porter and stout. "Malt liquor" includes beverages made with malt liquor, but to which no spirits are added.

2.__Credit allowed.__A brewer that employs persons in this State for the manufacture of malt liquor in this State is allowed a credit against the tax otherwise due under this Part in the amount of 50% of the taxes withheld pursuant to section 5250 for each employee employed in this State above the number of employees employed in this State by the brewer in the base year.

3. Limitation. The credit allowed by this section may not be used to reduce a brewer's tax liability under this Part to less than zero.

4. Corporations filing combined return. In the case of corporations filing a combined return, a credit generated by an individual member corporation under the provisions of this section must first be applied against the tax liability attributable to that individual member corporation under this Part. A member corporation with an excess brewer employment tax credit may apply its excess credit against the tax liability of other group members to the extent that the other member corporations may use additional credits under the limitations of subsection 3.

5. Expiration of credit. The credit provided by this section may not be claimed for tax years beginning on or after January 1, 2017.