124th MAINE LEGISLATURE
		LD 589		LR 395(02)
	An Act To Encourage the Production of Liquid Biofuels
	Fiscal Note for Bill as Amended by Committee Amendment "   "
	Committee: Taxation
	Fiscal Note Required: Yes
Fiscal Note
			2009-10	2010-11	Projections 2011-12	Projections 2012-13
Net Cost (Savings)
	General Fund		$240,880	$264,968	$291,465	$320,611
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 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 $14,534 in FY 2010-11. Additional costs to Maine Revenue Services associated with the tax changes can be absorbed within existing budgeted resources.