An Act to Expand the Use of Tax Increment Financing District Revenue by Adding Public Safety as an Authorized Project Cost

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132nd MAINE LEGISLATURE
FIRST REGULAR SESSION-2025
Legislative Document No. 1045
H.P. 674 House of Representatives, March 14, 2025
An Act to Expand the Use of Tax Increment Financing District
Revenue by Adding Public Safety as an Authorized Project Cost
Received by the Clerk of the House on March 12, 2025. Referred to the Committee on
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative KUHN of Falmouth.
Cosponsored by Senator PIERCE of Cumberland and
Representatives: BRIDGEO of Augusta, DHALAC of South Portland, LEE of Auburn,
MOONEN of Portland.

Page 1 - 132LR1142(01)
1Be it enacted by the People of the State of Maine as follows:
2Sec. 1. 30-A MRSA §5225, sub-§1, ¶B, as amended by PL 2021, c. 261, §5, is
3 further amended by amending subparagraph (1) to read:
4 (1) Costs related to the construction, alteration or expansion of any facilities not
5 located within the district that are required due to improvements or activities within
6 the district, including, but not limited to, sewage treatment plants, water treatment
7 plants or other environmental protection devices; storm or sanitary sewer lines;
8 water lines; electrical lines; improvements to public safety facilities; and amenities
9 on streets;
10Sec. 2. 30-A MRSA §5225, sub-§1, ¶B, as amended by PL 2021, c. 261, §5, is
11 further amended by enacting a new subparagraph (1-A) to read:
12 (1-A) Costs related to the construction, expansion, alteration or operation of and
13 improvements to public safety facilities not located within the district that are
14 required due to improvements or activities within the district;
15Sec. 3. 30-A MRSA §5225, sub-§1, ¶B, as amended by PL 2021, c. 261, §5, is
16 further amended by amending subparagraph (2) to read:
17 (2) Costs of public safety improvements related to the establishment and operation
18 of the district or commercial activities in the district. These costs include costs
19 related to public safety personnel and costs related to the construction, expansion
20 or operation of and improvements to public safety facilities and public safety
21 equipment;
22Sec. 4. 30-A MRSA §5225, sub-§1, ¶C, as amended by PL 2023, c. 142, §§1 to
23 3, is further amended by amending subparagraph (9) to read:
24 (9) Costs related to the construction, expansion, renovation or operation of
25 municipal or plantation public safety facilities, the need for which is related to
26 general economic development within the municipality or plantation, not to exceed
27 15% 50% of the captured assessed value of the development district;
28SUMMARY
29 This bill amends the law governing the use of tax increment financing district revenue
30 for public safety. It expands the list of project costs for public safety improvements that
31 are made outside the tax increment financing district that are authorized project costs. It
32 also adds costs related to the expansion and renovation of municipal or plantation public
33 safety facilities to the list of authorized project costs and increases, from 15% to 50%, the
34 percentage of tax increment financing district revenue permitted to be used by
35 municipalities and plantations for public safety costs related to economic development
36 activities.
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