An Act to Exclude Data Centers from the Business Equipment Tax Exemption and the Dirigo Business Incentives Program and to Require the Department of Economic and Community Development to Study Financial Incentives for Data Centers

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STATE OF MAINE
_____
IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-SIX
_____
H.P. 452 - L.D. 713
An Act to Exclude Data Centers from the Business Equipment Tax
Exemption and the Dirigo Business Incentives Program and to Require the
Department of Economic and Community Development to Study Financial
Incentives for Data Centers
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §691, sub-§1, ¶A, as amended by PL 2023, c. 588, §§3 to 5 and
affected by §7, is further amended by amending subparagraph (8) to read:
(8) Personal property that would otherwise be entitled to exemption under this
subchapter used primarily to support a telecommunications antenna used by a
telecommunications business subject to the tax imposed by section 457; or
Sec. 2. 36 MRSA §691, sub-§1, ¶A, as amended by PL 2023, c. 588, §§3 to 5 and
affected by §7, is further amended by amending subparagraph (9) to read:
(9) A facility that stores spent nuclear fuel, as defined in Title 22, section 673,
subsection 18, or radioactive waste classified by the United States Nuclear
Regulatory Commission as greater‑than‑Class C waste.; or
Sec. 3. 36 MRSA §691, sub-§1, ¶A, as amended by PL 2023, c. 588, §§3 to 5 and
affected by §7, is further amended by enacting a new subparagraph (10) to read:
(10) Any property located in a data center or in the portion of a facility that
constitutes a data center that begins operations on or after August 1, 2026,
including any property located in a data center or in the portion of a facility that
constitutes a data center that is part of an expansion or project after August 1, 2026.
For the purposes of this subparagraph, "begins operations" means that the data
center has installed operational computer and networking equipment and is
performing data processing, data storage, cloud computing or similar computing
infrastructure services. "Begins operations" does not include construction, site
preparation or equipment installation.
Sec. 4. 36 MRSA §691, sub-§1, ¶A-1 is enacted to read:
APPROVED
APRIL 23, 2026
BY GOVERNOR
CHAPTER
768
PUBLIC LAW
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A-1. "Data center" means any facility in the State, which may be a freestanding
structure or a facility within a larger structure, that primarily contains electronic
equipment used for data processing, data storage, cloud computing or similar
computing infrastructure services that uses environmental control equipment to
maintain the proper conditions for the operation of electronic equipment. "Data center"
does not include a facility or portion of a facility containing electronic equipment that
is incidental to and used in support of a business whose primary business activity is not
the performance of data processing, data storage, cloud computing or similar
computing infrastructure services.
Sec. 5. 36 MRSA §5219-AAA, sub-§1, ¶C-1 is enacted to read:
C-1. "Data center" means any facility in the State, which may be a freestanding
structure or a facility within a larger structure, that primarily contains electronic
equipment used for data processing, data storage, cloud computing or similar
computing infrastructure services that uses environmental control equipment to
maintain the proper conditions for the operation of electronic equipment. "Data center"
does not include a facility or portion of a facility containing electronic equipment that
is incidental to and used in support of a business whose primary business activity is not
the performance of data processing, data storage, cloud computing or similar
computing infrastructure services.
Sec. 6. 36 MRSA §5219-AAA, sub-§1, ¶G, as enacted by PL 2023, c. 412, Pt. J,
§13, is amended by amending subparagraph (4) to read:
(4) Software publishing, data processing and computer design services, excluding
services performed at a data center; or
Sec. 7. 36 MRSA §5219-AAA, sub-§3, ¶D, as enacted by PL 2023, c. 412, Pt. J,
§13, is amended to read:
D. A business with a certificate of approval for one of the tax credits allowed under
section 5219‑RR or 5219‑YY; or
Sec. 8. 36 MRSA §5219-AAA, sub-§3, ¶E, as enacted by PL 2023, c. 412, Pt. J,
§13, is amended to read:
E. A business that has undergone a layoff within the past 2 tax years.; or
Sec. 9. 36 MRSA §5219-AAA, sub-§3, ¶F is enacted to read:
F. A business that is a data center that begins operations on or after August 1, 2026.
For the purposes of this paragraph, "begins operations" means that the data center has
installed operational computer and networking equipment and is performing data
processing, data storage, cloud computing or similar computing infrastructure services.
"Begins operations" does not include construction, site preparation or equipment
installation.
Sec. 10. Department of Economic and Community Development to study
financial incentives that data centers may benefit from. The Department of
Economic and Community Development shall study potential financial incentives that data
centers may benefit from based on current state laws. The department shall submit a report
based on the study, including suggested legislation, no later than November 4, 2026 to the
joint standing committee of the Legislature having jurisdiction over taxation matters. The
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committee may report out legislation related to the report to the 133rd Legislature in 2027.
For the purposes of this section, "data center" has the same meaning as in the Maine
Revised Statutes, Title 36, section 691, subsection 1, paragraph A-1.