An Act To Create Jobs and Slow Climate Change by Promoting the Production of Natural Resources Bioproducts
Sec. 1. 36 MRSA §5219-X, sub-§5, as amended by PL 2015, c. 267, Pt. DD, §32, is further amended to read:
Sec. 2. 36 MRSA §5219-VV is enacted to read:
§ 5219-VV. Renewable chemicals tax credit
(1) Is the product of, or reliant upon, biological conversion, thermal conversion or a combination of biological and thermal conversion of renewable biomass;
(2) Is sold or used:
(a) For the production of chemical products, polymers, plastics or formulated products; or
(b) As a chemical, polymer, plastic or formulated product;
(3) Is not less than 95% biobased content; and
(4) Is not sold or used for production of any food, feed or fuel, except that "renewable chemical" may include:
(a) Cellulosic sugars used to produce aquaculture feed;
(b) A food additive, supplement, vitamin, nutraceutical or pharmaceutical that does not provide caloric value and is not considered food or feed; and
(c) Cellulosic ethanol, levulinic acid or similar chemicals when sold for use or for production of fuel additives in blends with gasoline or residential heating oil.
If the taxpayer does not contract directly with those hired or retained to harvest the renewable biomass, the taxpayer may obtain the necessary documentation under this subsection from the landowner or other entity that contracts directly.
This section applies to tax years beginning on or after January 1, 2020.
Sec. 3. Report. By February 1, 2024, the Department of Economic and Community Development shall submit a report relating to the usage of the renewable chemicals tax credit under the Maine Revised Statutes, Title 36, section 5219-VV to the joint standing committees of the Legislature having jurisdiction over taxation and innovation, development, economic advancement and business matters. The report must include:
1. For each tax credit awarded:
2. The amount in pounds of renewable chemical produced for which the credit was claimed.
This bill provides a tax credit for the production of renewable chemicals by the conversion of renewable biomass from the forest, farms, the sea or solid waste. The credit is equal to 7¢ per pound of renewable chemical produced in the State, 9¢ per pound of renewable chemical produced in the State if the taxpayer demonstrates to the satisfaction of the Department of Economic and Community Development that the contractors hired or retained by a landowner to harvest renewable biomass used in production of the renewable chemicals are 3rd-party certified by the Northeast Master Logger program or successor program and at least 50% of the contractors' employees are residents of the United States or 12¢ per pound of renewable chemical produced in the State if the taxpayer demonstrates to the satisfaction of the Department of Economic and Community Development that the contractors hired or retained by a landowner to harvest renewable biomass used in such production are 3rd-party certified by the Northeast Master Logger program and at least 75% of the contractors' employees are residents of the United States. Renewable chemicals are defined to include chemicals, polymers, plastics and formulated products, and to exclude substances used for food, feed or fuel, with limited exceptions. The bill also reinstates the tax credit for commercial production and use of biofuels.