‘Sec. 1. 36 MRSA §191, sub-§2, ¶¶EEE and FFF are enacted to read:
Sec. 2. 36 MRSA §5219-RR is enacted to read:
§ 5219-RR. Tax credit for Maine shipbuilding facility investment
(1) The applicant owns and operates or proposes to construct a Maine shipbuilding facility;
(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, working at a Maine shipbuilding facility owned and operated by that applicant;
(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 derived from employment with the Maine shipbuilding facility calculated on a calendar year basis is greater than the average annual per capita income in the State.
(1) The transferee of the Maine shipbuilding facility or of the certified applicant's stock is a member of the certified applicant's unitary affiliated group as defined in section 5102, subsection 1-B at the time of the transfer; or
(2) The transferee of the Maine shipbuilding facility or of the certified applicant's stock is not a member of the certified applicant's unitary 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 Maine shipbuilding facility in substantially the same manner as prior to the transfer and has the financial capability to do so.
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.
(1) The employment of the certified applicant for the report year, including specific information on:
(a) The number of qualified employees that are employed by the certified applicant at the end of the report year;
(b) The total number of qualified employees hired during the report year; and
(c) The number of qualified employees in positions that are covered by a collective bargaining agreement;
(2) The total dollar amount of payroll associated with employment in the report year, including specific information on:
(a) The average annual salary and wages for qualified employees; and
(b) The median annual salary and wages for qualified employees;
(3) The total dollar amount that was spent on goods and services obtained from businesses with an office in the State from which business operations in the State are managed; and
(4) The incremental level of qualified investments made during the report year, including specific information on:
(a) The amount of qualified investment in facility, production equipment and employee training and development, reported as an aggregate sum;
(b) The portion of the qualified investment reported under subparagraph (a) that was spent on goods and services from businesses with an office in the State from which business operations in the State are managed; and
(c) Whether the certified applicant has qualified for the additional credit under subsection 3, paragraph B.
The commissioner may prescribe forms for the annual reports required under this paragraph. The commissioner shall provide copies of the report to the State Tax Assessor and to the joint standing committee of the Legislature having jurisdiction over taxation matters at the time the report is received.
(1) Employment during the period being reviewed and how employment during that period compares to the minimum employment requirements set forth in subsection 4, paragraph B;
(2) The amount of qualified investment during the period being reviewed, and how expenditures compare to the minimum level of expenditure set forth in subsection 1, paragraph I;
(3) Measures of industry competitiveness;
(4) Measures of fiscal impact and overall economic impact to the State; and
(5) Information regarding the procedures for ensuring compliance with the preference requirements under subsection 8.
The Office of Program Evaluation and Government Accountability shall provide a report of its evaluation under this subsection to the joint standing committee of the Legislature having jurisdiction over taxation matters by August 15, 2024. Following receipt of the report, the joint standing committee shall determine whether the credit provided under this section is meeting its public policy objectives and whether it should be continued. The joint standing committee may submit a bill to the First Regular Session of the 132nd Legislature to accomplish its recommendations.’