Bill > LD1355

This bill requires the Governor's Energy Office to conduct a comprehensive study on the taxation of renewable energy infrastructure in the state, with the goal of evaluating the current tax system and exploring potential improvements. The study will examine several key aspects, including the existing statutory framework for personal and real property taxes on renewable energy projects like solar photovoltaic systems, wind energy developments, and battery storage systems, as well as the historical approach to taxing such infrastructure in Maine and other states. The office will investigate how new renewable energy projects might impact state-municipal revenue-sharing formulas, assess the challenges of determining the fair value of such infrastructure, and explore what tax rate per megawatt of electric generation capacity would fairly compensate municipalities without deterring project development. The study will also evaluate existing financial tools like tax increment financing and consider whether a uniform taxation approach could encourage renewable energy development and support the state's clean energy goals. The Governor's Energy Office is required to consult with tax policy experts, renewable energy industry representatives, and municipal officials, and will solicit public input. By November 4, 2026, the office must submit a detailed report with findings and recommendations to the legislative committee responsible for taxation matters, which may then propose related legislation in 2027. The office may receive funding from public or private sources to support this study and must disclose its funding sources in the final report.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1355&snum=132