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LD 1355

Resolve, To Require The Office Of Tax Policy To Study Taxation Of Renewable Energy Infrastructure

132nd Legislature (2025-2026) Introduced by Tavis Hasenfus

The bill directs the Governor’s Energy Office to study current taxes on renewable energy infrastructure and evaluate a uniform capacity tax, with findings due Nov 6, 2026.

Signed by Governor
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Bill Summary · LD 1355

Summary — LD 1355 (2025)

Resolve, To Require The Office Of Tax Policy to Study Taxation of Renewable Energy Infrastructure
Status: Signed by Governor (July 1, 2025)
Introduced: March 28, 2025

Purpose

LD 1355 directs a state office to study how renewable energy infrastructure is taxed and to evaluate whether Maine should adopt a uniform capacity tax for such infrastructure. The study is intended to inform possible statutory or administrative changes to the taxation framework for renewable generation projects.

Lead agency and scope

  • Although the bill title references the Office of Tax Policy, the enacted language (as amended) assigns the work to the Governor’s Energy Office (GEO). The GEO is authorized to accept public and private funding to complete the report.
  • The study must: examine and evaluate the current taxation system for renewable energy infrastructure, assess the potential adoption of a uniform capacity tax, and report findings to the Legislature by the required deadline (see Timeline).

Key provisions / requirements

  • Conduct a comprehensive review of existing tax treatment of renewable energy infrastructure (e.g., generation capacity, property taxes or other relevant levies).
  • Specifically assess the feasibility, design, and likely impacts of adopting a uniform capacity tax for renewable energy infrastructure.
  • Produce and deliver a written report of findings and recommendations to the Legislature by the report due date.

Fiscal impact

  • Early committee version: one-time General Fund appropriation of $75,000 (FY 2025-26) to GEO for contracted consultant costs to complete the study.
  • Subsequent amendments removed the $75,000 General Fund appropriation and instead authorized GEO to accept public and private funds to cover costs, making the net General Fund impact $0 in the final adopted version. Final fiscal notes indicate the study is subject to available funding and may affect other special revenue funds if such funds are accepted.

Timeline and legislative actions

  • Introduced: 2025-03-28; reported out by Taxation Committee (OTP-AM).
  • Amended (Committee Amendment H‑624 and Senate Amendment S‑473), passed both chambers (final legislative passage June 25, 2025).
  • Signed by the Governor: July 1, 2025.
  • Final report due (as adopted): November 6, 2026.

Who is affected / potential consequences

  • State agencies: GEO (lead), Office of Tax Policy and Revenue Services likely to be engaged.
  • Local governments, renewable project developers, utilities, property taxpayers, and assessors: potential future changes to tax liabilities, revenue distribution, and assessment methods if policy changes follow the study.
  • The study itself will inform legislators about trade-offs (revenue, fairness, project economics) of a uniform capacity tax versus current tax structures.

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

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