MaineMaine law excludes some data centers from tax benefits
Maine law excludes some data center property and services from specified tax benefits and requires a state department to study other possible incentives.
What it does
Maine law excludes property in certain data centers from the business equipment tax exemption when the center begins operating on or after August 1, 2026, including property in later expansions or projects.
Maine law excludes services performed at data centers from specified business incentive rules and excludes data center businesses that begin operating on or after August 1, 2026.
The Department of Economic and Community Development must study state incentives that data centers may benefit from and send the tax committee a report with suggested legislation.
Argument forExcluding qualifying data centers from these tax benefits could leave more support available for other businesses that meet the programs’ rules.
Argument againstData center owners may have fewer ways to reduce their tax costs when new centers begin operating on or after August 1, 2026.
More detail
Maine law excludes certain data center property from the business equipment tax exemption. The rule covers property in a data center or in the part of a larger facility that qualifies as a data center. A data center is a facility primarily containing computing equipment and environmental controls. Equipment incidental to a business whose main activity is something else is excluded from this definition. The rule applies to centers that begin operations on or after August 1, 2026. Operations begin when working computer and networking equipment is providing computing services; construction, site preparation, and equipment installation alone do not count.
Maine law excludes data centers from specified business incentive rules. The exclusions concern services performed at a data center and businesses that are data centers. The definition excludes computing equipment incidental to a business whose main activity is something else. The exclusion applies when a data center begins operations with working computer and networking equipment providing computing services; construction, site preparation, and equipment installation alone do not count. The start date applies to data center businesses that begin operations on or after August 1, 2026. The text gives no separate start date for the exclusion of services performed at a data center.
The Department of Economic and Community Development must study possible financial incentives for data centers and report to the Legislature's tax committee. The study covers incentives data centers may benefit from under current state laws. The report must include suggested legislation. The committee may report related legislation to the 133rd Legislature. The department must submit its report by November 4, 2026. The committee may report related legislation to the 133rd Legislature in 2027.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 23Signed by Governor Janet MillsLatest
- Apr 14Subsequently, PASSED TO BE ENACTED in concurrence.Passed 2nd Chamber
- Apr 14On motion by Senator ROTUNDO of Androscoggin taken from the Special Appropriations Table
- Apr 13On motion by Senator ROTUNDO of Androscoggin PLACED ON THE SPECIAL APPROPRIATIONS TABLE pending PASSAGE TO BE ENACTED, in concurrence.
- Vote recorded INDEFINITELY POSTPONE. Result: fail.Upper
- Apr 13Sent for concurrence. ORDERED SENT FORTHWITH.
- Apr 13PASSED TO BE ENACTED.Passed 1st Chamber
- Apr 13Ordered sent down forthwith.
- Apr 13Subsequently, the Senate RECEDED AND CONCURRED to PASSAGE TO BE ENGROSSED AS AMENDED BY Committee Amendment "A" (H-975) as Amended by House Amendment "A" (H-1040) thereto.Minor
- Apr 13Motion by Senator STEWART of Aroostook to INDEFINITELY POSTPONED Bill and accompanying papers FAILED
- Apr 13Senator PIERCE of Cumberland moved the Senate RECEDE and CONCUR to PASSAGE TO BE ENGROSSED AS AMENDED BY Committee Amendment "A" (H-975) as Amended by House Amendment "A" (H-1040) thereto.Minor
- Apr 9ORDERED SENT FORTHWITH.
- Apr 9In NON-CONCURRENCE and sent for concurrence.
- Apr 9Subsequently, the Bill was PASSED TO BE ENGROSSED as Amended by Committee Amendment "A" (H-975) as Amended by House Amendment "A" (H-1040) thereto.Minor
- Apr 9Committee Amendment "A" (H-975) as Amended by House Amendment "A" (H-1040) thereto was ADOPTED.Minor
- Apr 9On further motion of same Representative House Amendment "A" (H-1040) to Committee Amendment "A" (H-975) was READ and ADOPTED.
- Apr 9On further motion of the same Representative, under further SUSPENSION of the rules, the House RECONSIDERED ADOPTION of Committee Amendment "A" (H-975).
- Apr 9Subsequently, on motion of Representative SAYRE of Kennebunk, under SUSPENSION of the rules, the House RECONSIDERED its action whereby the Bill was PASSED TO BE ENGROSSED as Amended by Committee Amendment "A" (H-975).Minor
- Apr 9Speaker laid before the House
- Apr 8Later today assigned.
- Apr 8On motion of Representative MOONEN of Portland, TABLED pending PASSAGE TO BE ENACTED.Became Law
- Apr 6Reported Out - OTP-AM/ONTP
- Vote recorded ACCEPT MAJORITY OUGHT TO PASS AS AMENDED REPORT. Result: pass.Upper
- Vote recorded ACC MAJ OTP AS AMENDED REP. Result: pass.Lower
- Apr 6Under suspension of the Rules, READ A SECOND TIME and PASSED TO BE ENGROSSED AS AMENDED by Committee Amendment "A" (H-975) in concurrence.Minor
- Apr 6Committee Amendment "A" (H-975) READ and ADOPTED.Minor
- Apr 6READ ONCE.Minor
- Apr 6Roll Call Ordered Roll Call Number 894 Yeas 19 - Nays 13 - Excused 3 - Absent 0
- Apr 6On motion by Senator GROHOSKI of Hancock The Majority Ought to Pass As Amended Report ACCEPTED.
- Apr 6Reports READ.
- Apr 6Sent for concurrence. ORDERED SENT FORTHWITH.
- Apr 6The Bill was PASSED TO BE ENGROSSED as Amended by Committee Amendment "A" (H-975).Minor
- Apr 6Under suspension of the rules, the Bill was given its SECOND READING without REFERENCE to the Committee on Bills in the Second Reading.
- Apr 6Committee Amendment "A" (H-975) was READ and ADOPTED.Minor
- Apr 6The Bill was READ ONCE.Minor
- Apr 6(Yeas 75 - Nays 61 - Absent 14 - Excused 0 - Vacant 1)
- Apr 6ROLL CALL NO. 734
- Apr 6On motion of Representative SAYRE of Kennebunk, the Majority Ought to Pass as Amended Report was ACCEPTED.
- Apr 6Reports READ.
- Mar 19Voted - Divided Report
- Mar 19Work Session Held
- 2025
- Jun 25Carry Over Approved
- Jun 25Carried over, in the same posture, to any special or regular session of the 132nd Legislature, pursuant to Joint Order SP 800.
- May 23Carry Over Requested
- Mar 21Carried over, in the same posture, to the next special or regular session of the 132nd Legislature, pursuant to Joint Order SP 519.
- Feb 20The Bill was REFERRED to the Committee on TAXATION pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.Minor
- Feb 20Received by the Clerk of the House on February 20, 2025.Introduced
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