An Act To Strengthen Maine's Craft Brewers
Sec. 1. 28-A MRSA §1653 is enacted to read:
§ 1653. Export tax credit
A brewer is eligible for a credit against the excise tax imposed pursuant to this chapter as provided in this section.
A. Is licensed to and in fact does manufacture malt liquor in this State;
B. Exports malt liquor for sale outside this State; and
C. Pays excise taxes imposed pursuant to section 1652.
A. For the first year, on 90% of the total amount manufactured and exported in that year;
B. For the 2nd year, on 80% of the total amount manufactured and exported in that year, plus an additional credit of 17.5¢ per gallon on the amount in excess of 110% of the amount manufactured and exported in the first year of participation;
C. For the 3rd year, on 70% of the total amount manufactured and exported in that year, plus an additional credit of 17.5¢ per gallon on the amount in excess of 110% of the amount manufactured and exported in the 2nd year of participation;
D. For the 4th year, on 60% of the total amount manufactured and exported in that year, plus an additional credit of 17.5¢ per gallon on the amount in excess of 110% of the amount manufactured and exported in the 3rd year of participation;
E. For the 5th year, on 50% of the total amount manufactured and exported in that year, plus an additional credit of 17.5¢ per gallon on the amount in excess of 110% of the amount manufactured and exported in the 4th year of participation;
F. For the 6th year, on 40% of the total amount manufactured and exported in that year, plus an additional credit of 17.5¢ per gallon on the amount in excess of 110% of the amount manufactured and exported in the 5th year of participation;
G. For the 7th year, on 30% of the total amount manufactured and exported in that year, plus an additional credit of 17.5¢ per gallon on the amount in excess of 110% of the amount manufactured and exported in the 6th year of participation;
H. For the 8th year, on 20% of the total amount manufactured and exported in that year, plus an additional credit of 17.5¢ per gallon on the amount in excess of 110% of the amount manufactured and exported in the 7th year of participation;
I. For the 9th year, on 10% of the total amount manufactured and exported in that year, plus an additional credit of 17.5¢ per gallon on the amount in excess of 110% of the amount manufactured and exported in the 8th year of participation; and
J. For the 10th year, on the amount in excess of 110% of the amount manufactured and exported in the 9th year of participation.
A brewer may not claim a credit available pursuant to this subsection that exceeds 50% of the amount of excise taxes due from that brewer pursuant to section 1652.
Sec. 2. 36 MRSA §5219-Y is enacted to read:
§ 5219-Y. Brewery employment tax credit
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.
summary
This bill provides tax incentives to malt liquor brewers to encourage them to increase their employment in Maine and the amount of malt liquor produced in Maine and exported for sale outside of Maine. Specifically, this bill:
1. Provides a tax credit against the excise taxes imposed on alcohol manufactured and sold in Maine by a brewer equal to 17.5¢ per gallon of malt liquor manufactured and exported by that brewer. This tax credit is limited to 50% of the amount of excise taxes due from a brewer. The percentage of malt liquor that is eligible for the credit is 90% of the amount produced and exported and is reduced by 10% each year. If a brewer increases its production and export of malt liquor by 10% in a year, an additional credit is allowed for the excess; and
2. Provides a credit against the income taxes paid by a brewer equal to 50% of the payroll taxes withheld by that brewer for each employee employed in the State for the manufacture of malt liquor above the number of employees employed by the brewer in the State for the manufacture of malt liquor in 2005, or the first year of business of the brewer, whichever is later.
Both the excise tax credit and the income tax credit expire on December 31, 2016.