The city of Augusta has approved a tax break for Kennebec Valley Gas Co.’s proposed natural gas pipeline through central Maine, making it the first of 12 communities along the line’s route to agree to a tax deal.
The Augusta City Council last week unanimously voted to support a tax agreement with the Portland-based company should the project be built, according to the Kennebec Journal. The tax increment financing district would return 80% of the pipeline’s property taxes to Kennebec Valley Gas for the first 10 years, then 60% for another five years. Kennebec Valley Gas won initial Public Utilities Commission approval in August.
Augusta’s agreement doesn’t impact a competing proposal by the town of Madison, which is also seeking to build a pipeline from Richmond to Madison. Should the Madison project be built instead of Kennebec Valley Gas’ project, the TIF would be moot, City Manager Bill Bridgeo told the paper.