Senator seeks to replace energy tax credits with point-of-sale rebates and asks taxation committee to re-refer bill

Senator Tepler asked the Joint Standing Committee on Taxation to re-refer LD2140 to the Energy, Utilities and Technology Committee after concluding that tax credits are less effective at boosting affordability for households.

"Increasing affordability is not so much sitting with tax credits, because people have to afford to pay for things upfront and they don't get the credit until they pay their tax bill or get their refund some months later," Tepler said, explaining she is pursuing a strike-and-replace approach that would provide point-of-sale or instant rebates instead.

Tepler said she is working with Michael Stoddard of Efficiency Maine to identify which items would most effectively lower energy bills and suggested the program would likely focus on insulation rather than doors or windows, which she said "help far less with energy efficiency than insulation." Committee members agreed instant rebates generally see higher uptake than tax credits.

Members raised implementation questions about eligibility and whether work must be performed by certified installers. Tepler and staff said those details remain to be drafted; the committee noted analysts from OPLA and the receiving committee would need to craft statutory language consistent with Title 35‑A and current Efficiency Maine authorities.

Representative Rudnicki objected to sending the bill to another committee in a short session without language in hand, calling the move "forum shopping." Other members, including Senator Bickford, said removing the proposal from Title 36 tax provisions made referral to the energy committee appropriate because it would place the program within agencies that already administer energy assistance and efficiency programs.

The committee voted by voice and raised hands to re-refer LD2140 to the Energy, Utilities and Technology Committee; members recorded in favor included Representative Swallow, Representative Quinn, Representative Matlak, Representative Sayre, Senator Grohowski, Senator Bickford, Representative Levine, Representative Friedman, Representative White and Representative Crockett. Representative Rudnicki signaled opposition before the chair closed the work session.

The chair said re-referral will allow the energy committee's analyst to help draft the replacement language and that the bill will be placed on that committee's calendar once prepared.

The taxation committee closed its work session on LD2140 and moved to the afternoon's next item.