Rolled-back BIW tax credit wins initial votes
Courtesy / Bath Iron Works
An aerial view of BIW shows the Land Level Transfer Facility (foreground) the Outfitting Hall (left) and drydock (left foreground), elements of the roughly $500 million in facility investments made in the shipyard during the current tax incentive program that expires at the end of this year. A bill that would extend $60 million in additional tax credits over the next 20 years, so long as the shipyard met employment and investment targets, passed a key hurdle Tuesday with the Taxation Committee voting 8-2 to recommend passage of the bill by the full Legislature.
A bill that would extend a $45 million tax break to Bath Iron Works over 15 years received a strong endorsements in both chambers of the Maine Legislature this week.
The Bangor Daily News reported that the House voted 117-31 Tuesday in support of extending tax credits to the Bath shipyard when the current credits expire later this year, while the Senate voted 25-9 on Wednesday in support of the bill.
LD 1781, An Act To Encourage New Major Investments in Shipbuilding Facilities and the Preservation of Jobs, has been scaled back from the original proposal, which would have provided $60 million in credits in two 10-year increments. BDN reported that the bill was scaled back by the Taxation Committee to $45 million over 15 years.
The revised bill, which is sponsored by Rep. Jennifer DeChant, D-Bath, requires BIW to maintain certain employment levels and make at least $200 million in infrastructure investments in order to receive the full tax benefits.
BDN reported that faces a number of additional votes in both chambers before being sent to Gov. Paul LePage.
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