124th MAINE LEGISLATURE
		LD 589		LR 395(01)
	An Act To Encourage the Production of Liquid Biofuels
	Preliminary Fiscal Impact Statement for Original Bill
	Sponsor: Rep. Butterfield, II of Bangor
	Committee: Taxation
	Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
			2009-10	2010-11	Projections 2011-12	Projections 2012-13
Net Cost (Savings)
	General Fund		$740,880	$264,968	$291,465	$320,611
Appropriations/Allocations
	General Fund		$500,000	$0	$0	$0
Revenue
	General Fund		($240,880)	($264,968)	($291,465)	($320,611)
	Other Special Revenue Funds		($13,213)	($14,534)	($15,987)	($17,586)
Fiscal Detail and Notes
	This bill includes a one-time General Fund appropriation of $500,000 in fiscal year 2009-10 to the Office of Innovation within the Department of Economic and Community Development for the Maine Technology Institute to fund research in cost-effective technology to convert forest resources to biofuels. The bill also increases the income tax credit from $.05 per gallon to $0.15 per gallon for the production of biofuels and enacts an income tax credit equal to 25% of the capital costs of converting an existing wood mass production facility to a facility for the production of wood mass-derived biofuel. The tax changes will decrease General Fund revenue by $240,880 in FY 2009-10 and $264,968 in FY 2010-11. The Local Government Fund will decrease by $13,213 in FY 2009-10 and by $14,534 in FY 2010-11.