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LD 1951

An Act To Promote Food Processing And Manufacturing Facility Expansion And Create Jobs

132nd Legislature (2025-2026) Introduced by Roger Albert and 8 co-sponsors

Expands eligibility and boosts the Maine income tax credit for major food processing facility expansions to spark investment and create jobs, starting in 2027.

Signed by Governor
#credits #incometax #productionfacilities
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Bill Summary · LD 1951

Summary — LD 1951: An Act To Promote Food Processing And Manufacturing Facility Expansion And Create Jobs

Status: Signed by Governor (07/01/2025)
Introduced: 05/07/2025
Committee: Taxation
Subject: income tax credits for production/food processing facilities

Purpose

LD 1951 expands and clarifies the state income tax credit available for major food processing and manufacturing facility expansions. The stated intent is to encourage capital investment and job creation in Maine’s food processing and manufacturing sector by making more projects eligible and increasing available credit limits.

Key provisions

  • Expands eligibility and adjusts credit limitations for the existing income tax credit for major food processing and manufacturing facility expansion.
  • Applies to tax years beginning on or after January 1, 2027 (the bill was amended during legislative action to move the effective tax year to 2027).
  • No new dedicated administrative appropriation: the Department of Economic and Community Development (DECD) can implement the bill within current budgeted resources.

(Exact statutory amendments to eligibility criteria, credit calculation or cap amounts are in the engrossed bill language; this summary reflects the fiscal and procedural information available.)

Fiscal impact (per final fiscal note, LR1100(06))

  • General Fund revenue decrease:
    • FY 2025‑26: $0
    • FY 2026‑27: $256,500
    • FY 2027‑28 and FY 2028‑29 (projections): $1,681,500 each year
  • Local Government Fund (reported as other special revenue) revenue decrease:
    • FY 2025‑26: $0
    • FY 2026‑27: $13,500
    • FY 2027‑28 and FY 2028‑29 (projections): $88,500 each year
  • DECD implementation costs: absorbable within existing budgets.

(Note: earlier amendment drafts shifted the effective tax year and altered FY impacts; the numbers above reflect the bill as engrossed and enacted.)

Who is affected

  • Businesses undertaking major food processing or manufacturing facility expansions that meet the expanded eligibility rules — these taxpayers may qualify for larger or newly available tax credits.
  • State finances: reduced General Fund and Local Government Fund revenues as shown above.
  • State economic development efforts: intended to spur private investment and job growth in the targeted sector.

Legislative actions / timeline highlights

  • Referred to Taxation Committee (05/07/2025); work session and OTP‑AM report (05/22 & 06/13).
  • Committee Amendment "A" (S‑400) adopted; Senate Amendment "A" (S‑488) to that amendment adopted (06/13–06/25).
  • Passed both chambers (House receded and concurred; final roll call 96–43 on 06/25/2025).
  • Signed into law by the Governor on 07/01/2025.
  • Effective for tax years beginning on or after January 1, 2027.

If you want, I can extract and summarize the exact statutory text changes (eligibility criteria, credit calculation, caps, application/recapture rules) from the engrossed bill.

Compiled from official sources — confirm details with the bill’s official record.

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