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OPEGA outlines parameters for three tax‑expenditure reviews, asks taxation committee for input
Summary
OPEGA presented proposed evaluation parameters for deductions on interest/dividends of state and local securities, the Maine EITC, and the affordable‑housing credit, and asked the committee to review and transmit comments to the Government Oversight Committee before its upcoming vote.
OPEGA analysts told the Joint Standing Committee on Taxation that they had drafted parameters to guide three upcoming tax‑expenditure reviews and were seeking the committee’s input before the Government Oversight Committee voted later this week.
"Before OPEGA can review any tax expenditures, the GOC with input from the public and in consultation with this committee sets the parameters for the evaluation," analyst Carrie Hojara said, describing the documents the committee received.
The three proposed reviews are: 1) deductions for interest and dividends on Maine state and local securities — OPEGA recommended a narrow, descriptive first step to identify which bonds are affected, how they are used and who buys them; 2) the Maine Earned Income Tax Credit (EITC) — OPEGA proposed goals focused on reducing poverty and encouraging workforce participation and suggested performance metrics based on federal EITC research; and 3) the credit for affordable housing — for which OPEGA said statutory purposes and metrics already exist and were reflected in the draft parameters.
Committee members asked whether a 30‑day review window could produce useful findings. OPEGA said a 30‑day effort is feasible for descriptive and literature‑review tasks (for example, compiling other states’ program structures or existing evaluations), but deeper evaluative work will likely require agency data and more time.
OPEGA also told the committee it had issued a November report on the major business headquarters expansion credit, had received public comment and was working with GOC on draft bill language intended to increase transparency around multiple incentives. The draft language was described as an initial starting place that the GOC could report out to a policy committee for further work.
The committee agreed to review the parameter documents, consider what would be most helpful for legislators, and transmit comments to OPEGA for the GOC’s Friday meeting. OPEGA said it would provide additional written material, including summaries of public comments, and remain available for briefings.
