MaineLD 713132nd Maine Legislature (2025-2026)House

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)

Signed by Governor

REVENUE SERVICES BUREAUREVENUE SERVICES BUREAU - PROCEDURES

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 2 costs, 1 mixed.

Data centers lose equipment tax break

Beginning August 1, 2026, property in a new data center is taxable and no longer covered by Maine’s business equipment tax exemption. A data center “begins operations” only when it has working computer and network equipment and is providing data processing, storage, cloud, or similar services. Construction, site prep, and installing equipment do not count. Data centers that began operations before that date are not affected by this exclusion.

Dirigo credits limited for data centers

Services performed at a data center are not eligible for Dirigo Business Incentives. Examples include software, data processing, and computer design work done at the site. A business that is a data center that begins operations on or after August 1, 2026 is also subject to these limits. This reduces potential credit money for affected businesses.

Clear definition of data centers

The law sets a single meaning for “data center.” It is a site that mainly houses computer gear for data processing, storage, cloud, or similar services and uses environmental controls. A space where such gear is only incidental to another main business is not a data center. This definition applies to the equipment tax exemption and the Dirigo incentives.

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

Signed by Governor, ACTPUB Chapter 768
4/23/2026
On motion by Senator ROTUNDO of Androscoggin taken from the Special Appropriations Table Subsequently, PASSED TO BE ENACTED in concurrence.
4/14/2026Senate
On motion by Senator ROTUNDO of Androscoggin PLACED ON THE SPECIAL APPROPRIATIONS TABLE pending PASSAGE TO BE ENACTED, in concurrence.
4/13/2026Senate
PASSED TO BE ENACTED. Sent for concurrence. ORDERED SENT FORTHWITH.
4/13/2026House
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
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
Unfinished Business
4/9/2026House
On motion of Representative MOONEN of Portland, TABLED pending PASSAGE TO BE ENACTED.Later today assigned.
4/8/2026House
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
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
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
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
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

Amendment C-A (H-975), adopted by House & Senate
PDF
Amendment H-A to C-A (H-1040), adopted by House & Senate
PDF
Enacted
PDF
Introduced
PDF

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