SUMMARY

This bill provides tax incentives to malt liquor brewers to encourage them to increase their employment in Maine and the amount of malt liquor produced in Maine and exported for sale outside of Maine. Specifically, this bill:

1. Provides a tax credit against the excise taxes imposed on alcohol manufactured and sold in Maine by a brewer equal to 17.5¢ per gallon of malt liquor manufactured and exported by that brewer. The percentage of malt liquor that is eligible for the credit is 90% of the amount produced and exported and is reduced by 10% each year. If a brewer increases its production and export of malt liquor by 10% in a year, an additional credit is allowed for the excess; and

2. Provides a credit against the income taxes paid by a brewer equal to 50% of the payroll taxes withheld by that brewer for each employee employed in the State above the number of employees employed by the brewer in the State in 2005, or the first year of business of the brewer, whichever is later.

Both the excise tax credit and the income tax credit expire on December 31, 2016.

This bill also creates a new license for a person who contracts with a brewery or small brewery to manufacture that person's malt liquor.