In these frightening and stressful times, we’re glad to be able to share a bit of good news with you.
On Wednesday, March 18, Governor Janet Mills signed LD 1698: An Act to Create Jobs and Slow Climate Change by Promoting the Production of Natural Resources Bioproducts into law. This legislation, which offers an 8 cents per pound tax credit for the production of renewable chemicals and reinstates a latent biofuels tax credit at 5 cents per gallon, will help Maine compete for a market share in the growing global bioeconomy.
Jamie Chittum, Board President at Biobased Maine and Director of Business Development at Quick Plug North America commented,
“We’re excited to see Maine’s Governor sign LD 1698, a competitive tax credit for renewable chemicals and products, into law. This legislation will accelerate the growth of Maine’s emerging biobased industry, which manufactures climate-friendly products from sustainably sourced Maine biomass, and will bring jobs and economic prosperity back to Maine’s rural communities.”
With the signing of LD 1698, Maine became the third state in the country to enact a production tax credit for renewable chemicals, after Iowa and Minnesota, both of which promote corn to replace oil and gas.
And this legislation is directly in line with the 10-year Strategic Economic Development Plan released by the state, which outlines biobased products as a key opportunity to create jobs, increase investment, and lower the state’s carbon emissions.
Biofine Developments Northeast Chief Development Officer, Mike Cassata, responded to the new law, “This tax credit will allow Biofine to scale up our technology to bring our renewable, wood-based home heating oil to market, creating good jobs for Maine citizens and helping to reduce the carbon footprint of Maine’s economy.”
“An incentive like this will help towns like East Millinocket attract new investment” said Peggy Daigle, former town Manager. “This new biobased industry can create high-paying manufacturing jobs in our rural communities.”
Biobased Maine would like to thank Governor Mills and other Maine lawmakers’ leadership in passing this important legislation amid the state’s critical response to the COVID-19 pandemic.