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Tax panel advances bill to allow transferability, refundability for biofuel tax credits after amendments
Summary
The Joint Standing Committee on Taxation advanced LD 20 44 as amended, including sponsor-proposed refundable-credit parameters and added reporting language; the motion passed with a majority and a minority report from Representative White.
The Joint Standing Committee on Taxation on Wednesday advanced LD 20 44, a bill that would allow transferability of biofuel production and renewable‑chemical tax credits and, in the sponsor’s amendment, make the credits refundable under specified parameters.
Senator Theresa Pierce, sponsor of the bill, told lawmakers she worked with committee analysts to draft an amendment that would convert the existing nonrefundable framework into a refundable credit with limits and reporting requirements. "We took what you said to me, which was to make this a refundable tax credit and then also put a parameter around it," Pierce said, presenting the amendment and citing interest from producers in Millinocket and Lincoln‑area facilities.
Analysts and committee members probed the practical effects of refundability and how oversight would operate. Staff noted existing law allows tax credits to be generated across multiple taxable years and that program reviews by OPEGA and reporting by DECD and Maine Revenue Services could be used to assess program performance. "We already have statutes in place that allow OPEGA to review programs," Senator Bruce Bickford said during the discussion.
After debate, Senator Bickford moved that the committee report LD 20 44 "ought to pass as amended" with a fiscal note; Representative Freeman seconded. The motion carried by hand/voice vote with the majority supporting the amended report and Representative White offering the minority "ought not to pass" report.
The committee asked staff to refine statutory language during language review to clarify refundability mechanics and reporting triggers. The chair closed the LD 20 44 work session; language review and a fiscal note will follow before the measure proceeds further.
What’s next: Committee staff will draft final language reflecting the refundability parameters and any reporting requirements agreed to by members; a fiscal note and language review were requested before the bill advances toward the Legislature’s next steps.
