Lawmakers scrutinize business tax breaks
Lawmakers are examining whether tax incentives to manufacturing and shipbuilding businesses in the state could be used to balance the budget, an idea that has sparked the concern of industry representatives.
The Taxation Committee yesterday met to discuss whether any business tax exemptions could be used to address the state's anticipated $400 million two-year budget shortfall, scrutinizing the 95% sales tax exemption on fuel and electricity for manufacturing companies and a $3 million shipbuilding tax credit that goes to Bath Iron Works, according to the Kennebec Journal. Members of the committee conceded that scrapping those tax breaks would be controversial to legislators and the business community, but said the state's budget situation warrants the scrutiny. The committee plans to explore whether those tax incentives do enough to attract business and save or create jobs, and offer recommendations to budget writers, according to the paper.
BIW spokesman Jim DeMartini said the discussion "raises some concern on our part," and that the credit helps the shipyard employ as many people as it can. Bill Cohen, spokesman for Verso Paper, which operates mills in Jay and Bucksport, said losing the sales tax exemptions could prevent the company from filling job openings.
Go to the article from the Kennebec Journal >>
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