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MaineLD 713132nd Maine Legislature (2025-2026)HouseWALLET

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

Sponsored By: Kristen Cloutier (Democratic)

Became Law

REVENUE SERVICES BUREAUREVENUE SERVICES BUREAU - PROCEDURES

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 2 costs, 1 mixed.

Dirigo covers certificates and recent layoffs

The law says a business with an approval certificate under sections 5219‑RR or 5219‑YY is included in the list used for Dirigo rules. It also includes a business that had a layoff within the past two tax years in that list. These clarifications can affect whether Dirigo incentives apply to those businesses.

Dirigo incentives tighten for data centers

Dirigo Business Incentives no longer cover software publishing, data processing, or computer design when those services are done at a data center. Starting August 1, 2026, data centers that begin operations on or after that date are handled under new rules that use the same "begins operations" test. The law sets one definition of "data center" for Dirigo: its main job is computing services with environmental controls; equipment that is only incidental to another business does not qualify.

New data centers lose property tax break

Beginning August 1, 2026, property in any data center that begins operations on or after that date is not exempt from the Business Equipment Tax Exemption. This includes a data center that is only part of a larger building. "Begins operations" means installed, working computer and networking gear and active data processing, storage, or cloud services; construction or installation alone does not count. The law also defines a data center for tax rules: its main job is computing services with environmental controls; gear that is only incidental to another business does not qualify.

New property tax breaks for antennas, waste

Personal property used mainly to support a telecommunications antenna owned or used by a telecom business taxed under section 457 is exempt from local property tax under the business equipment tax exemption. The law also identifies facilities that store spent nuclear fuel or greater‑than‑Class C radioactive waste in the exemption rules, which changes how the exemption applies to them. These adjustments affect which business equipment is removed from local taxable property rolls.

Sponsors & Cosponsors

Sponsor

  • Kristen Cloutier

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 108 • No: 94

Senate vote • 4/13/2026

INDEFINITELY POSTPONE

Yes: 14 • No: 20

Senate vote • 4/6/2026

ACCEPT MAJORITY OUGHT TO PASS AS AMENDED REPORT

Yes: 19 • No: 13

House vote • 4/6/2026

ACC MAJ OTP AS AMENDED REP

Yes: 75 • No: 61

Actions Timeline

  1. ACTPUB Chapter 768

    5/1/2026

  2. On motion by Senator ROTUNDO of Androscoggin taken from the Special Appropriations Table Subsequently, PASSED TO BE ENACTED in concurrence.

    4/14/2026Senate

  3. On motion by Senator ROTUNDO of Androscoggin PLACED ON THE SPECIAL APPROPRIATIONS TABLE pending PASSAGE TO BE ENACTED, in concurrence.

    4/13/2026Senate

  4. PASSED TO BE ENACTED. Sent for concurrence. ORDERED SENT FORTHWITH.

    4/13/2026House

  5. Senator 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. Motion by Senator STEWART of Aroostook to INDEFINITELY POSTPONED Bill and accompanying papers FAILED Subsequently, 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. Ordered sent down forthwith.

    4/13/2026Senate

  6. Speaker laid before the HouseSubsequently, 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).On further motion of the same Representative, under further SUSPENSION of the rules, the House RECONSIDERED ADOPTION of Committee Amendment "A" (H-975).On further motion of same Representative House Amendment "A" (H-1040) to Committee Amendment "A" (H-975) was READ and ADOPTED.Committee Amendment "A" (H-975) as Amended by House Amendment "A" (H-1040) thereto was ADOPTED. Subsequently, the Bill was PASSED TO BE ENGROSSED as Amended by Committee Amendment "A" (H-975) as Amended by House Amendment "A" (H-1040) thereto.In NON-CONCURRENCE and sent for concurrence.ORDERED SENT FORTHWITH.

    4/9/2026House

  7. Unfinished Business

    4/9/2026House

  8. On motion of Representative MOONEN of Portland, TABLED pending PASSAGE TO BE ENACTED.Later today assigned.

    4/8/2026House

  9. Reports READ. On motion by Senator GROHOSKI of Hancock The Majority Ought to Pass As Amended Report ACCEPTED. Roll Call Ordered Roll Call Number 894 Yeas 19 - Nays 13 - Excused 3 - Absent 0 READ ONCE. Committee Amendment "A" (H-975) READ and ADOPTED. Under suspension of the Rules, READ A SECOND TIME and PASSED TO BE ENGROSSED AS AMENDED by Committee Amendment "A" (H-975) in concurrence.

    4/6/2026Senate

  10. Reports READ.On motion of Representative SAYRE of Kennebunk, the Majority Ought to Pass as Amended Report was ACCEPTED.ROLL CALL NO. 734(Yeas 75 - Nays 61 - Absent 14 - Excused 0 - Vacant 1)The Bill was READ ONCE.Committee Amendment "A" (H-975) was READ and ADOPTED.Under suspension of the rules, the Bill was given its SECOND READING without REFERENCE to the Committee on Bills in the Second Reading.The Bill was PASSED TO BE ENGROSSED as Amended by Committee Amendment "A" (H-975). Sent for concurrence. ORDERED SENT FORTHWITH.

    4/6/2026House

  11. Carried over, in the same posture, to any special or regular session of the 132nd Legislature, pursuant to Joint Order SP 800.

    6/25/2025House

  12. Carried over, in the same posture, to the next special or regular session of the 132nd Legislature, pursuant to Joint Order SP 519.

    3/21/2025House

  13. Received by the Clerk of the House on February 20, 2025.The Bill was REFERRED to the Committee on TAXATION pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.

    2/20/2025House

Bill Text

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