Bill > LD652

This bill amends Maine state law to allow municipalities and plantations with established downtown tax increment financing (TIF) districts to use a portion of their TIF funds to help businesses and developments pay for flood insurance. Specifically, the bill permits municipalities to allocate up to 25% of their annual tax increment to create a flood assistance program that provides financial support for flood insurance costs. To be eligible for this assistance, businesses or developments must meet specific criteria, such as being located in a federally designated floodplain (as mapped by FEMA) and demonstrating financial need. The bill also makes some minor technical changes to existing language about how TIF funds can be used, including clarifying provisions about housing programs and capital costs for administrative offices. By enabling this new use of TIF funds, the bill aims to help downtown businesses in flood-prone areas manage the financial burden of required flood insurance, which can be expensive and challenging for small businesses to afford.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=652&snum=132