An Act To Encourage New Major Investments in Shipbuilding Facilities and the Preservation of Jobs
Sec. 1. 36 MRSA §5219-RR is enacted to read:
§ 5219-RR. Tax credit for major shipbuilding facility investment
(1) The applicant owns or operates or proposes to construct a shipbuilding facility within the State;
(2) The applicant proposes to make a qualified investment; and
(3) The applicant employs at least 5,000 qualified employees at the time the application is filed.
(1) Who is a full-time employee of the certified or qualified applicant, as the case may be;
(2) Whose income from that employment is taxable under chapter 803;
(3) For whom a retirement program is provided subject to the federal Employee Retirement Income Security Act of 1974, 29 United States Code, Sections 1001 to 1461, as amended;
(4) For whom group health insurance is provided; and
(5) Whose income calculated on a calendar year basis is greater than the average annual per capita income in the State.
(1) The State shall allow the credit provided for in this section as it is in effect on the date the certificate of approval is issued for as long as the qualified applicant qualifies for the credit provided for in this section on the date the certificate is issued;
(2) The qualified applicant, when awarding contracts, purchasing supplies or subcontracting work related to a qualified investment, shall give preference, to the greatest extent possible, to Maine workers, companies and bidders as long as the supplies, products and bids meet the standards required by the qualified applicant for best value, including, without limitation, quality and delivery, and are competitively priced; and
(3) The qualified applicant, in conjunction with the Department of Economic and Community Development, shall sponsor regional seminars for Maine businesses on how to do business with the qualified applicant.
(1) The transferee of the shipbuilding facility or of the certified applicant's stock is a member of the certified applicant's affiliated group as defined in section 5102, subsection 1-B at the time of the transfer; or
(2) The transferee of the shipbuilding facility or of the certified applicant's stock is not a member of the certified applicant's affiliated group as defined in section 5102, subsection 1-B at the time of the transfer and the commissioner finds that the transferee intends to continue the operations of the shipbuilding facility in substantially the same manner as prior to the transfer and has the financial capability to do so. In addition, prior to approval of any transfer, the commissioner may request and be provided with the report and audit of the transferor pursuant to section 6854. The commissioner may condition the approval of the transfer based upon the findings of the report and audit.
If the commissioner grants a transfer of the certificate of approval, the transferee must be treated as the certified applicant for all purposes of this section. For purposes of calculation of employment and qualified investments of the certified applicant, the qualified employees and the qualified investments of the transferor prior to transfer must be considered the qualified employees and qualified investments of the transferee.
The State Tax Assessor may prescribe forms for the annual reports described in this subsection. The report required by this subsection is not subject to the confidentiality provisions of section 191 and may be made available to the public upon request.
For tax years beginning on or after January 1, 2020 and continuing for the next 19 years, this bill provides a tax incentive for major investments in a shipbuilding facility and the preservation of jobs at that shipbuilding facility by allowing the shipbuilding facility an annual income tax credit equal to 3% of the shipbuilding facility's total qualified investment, as long as certain employment levels are maintained. In order to qualify for the credit, the shipbuilding facility must make expenditures after January 1, 2018 of at least $100,000,000 that are related to the construction, improvement, modernization or expansion of the shipbuilding facility and maintain at least 5,000 employees. If the shipbuilding facility employs at least 5,250 employees, the facility is entitled to an amount equal to 110% of the credit. The facility may employ fewer than 5,000 employees in 2 separate years within the 20-year period and still qualify for the credit, but at a prorated reduction.
The purpose of this bill is to encourage major investments in shipbuilding facilities in this State, to ensure the long-term survival of the shipbuilding industry, to preserve numerous opportunities for jobs for the people of this State and to make the State more competitive in the shipbuilding industry and thus ensure the preservation and betterment of the economy of the State for the benefit of its people.