Tax Incentive Evaluation Law: Maine

Fact Sheet August 11, 2015 Read time:

Projects: Economic Development

This page is no longer being updated. As of June 15, 2017, newer tax incentive evaluation fact sheets are available here.

To ensure that economic development tax incentives are achieving their goals effectively, many states have approved laws requiring regular, rigorous, independent evaluations of these programs. For a list of states that have passed evaluation laws since the start of 2012, click here.

Maine

L.D. 941, enacted July 12, 2015

What it does

Requires evaluation of all major tax incentives
The Legislature's nonpartisan office of Program Evaluation and Government Accountability (OPEGA) will conduct evaluations of tax credits, exemptions, and deductions on a recurring basis. The evaluations will analyze whether tax incentives are achieving their goals cost-effectively and how they can be improved.
Connects reviews to policymaking
Lawmakers on the Government Oversight Committee will determine the review schedule and vote on whether to endorse OPEGA's evaluations. The Taxation Committee will provide recommendations to the full Legislature on whether each program should be continued, modified, or repealed.

Requires evaluation of all major tax incentives

The Legislature's nonpartisan office of Program Evaluation and Government Accountability (OPEGA) will conduct evaluations of tax credits, exemptions, and deductions on a recurring basis.

The evaluations will analyze whether tax incentives are achieving their goals cost-effectively and how they can be improved.

Connects reviews to policymaking

Lawmakers on the Government Oversight Committee will determine the review schedule and vote on whether to endorse OPEGA's evaluations.

The Taxation Committee will provide recommendations to the full Legislature on whether each program should be continued, modified, or repealed.

Excerpt from Maine’s law: Agencies share data while protecting confidential information

A. The [Office of Program Evaluation and Government Accountability] may request confidential information from the Department of Administrative and Financial Services, Maine Revenue Services or other state agencies as necessary to address the evaluation objectives and performance measures approved under section 999, subsection 1. The office shall request any confidential information in accordance with section 997, subsection 4. The office shall request that confidential tax information, other than beneficiary contact information, be made accessible to the office as de-identified tax data. If Maine Revenue Services is unable to provide such data, the office and representatives of Maine Revenue Services shall determine appropriate methods for the office to access the requested information.

B. Upon request of the office and in accordance with section 997, subsection 4, the Department of Administrative and Financial Services, Maine Revenue Services or other state agencies shall provide confidential information to the office. The office shall maintain the confidentiality of the information provided, in accordance with section 997, subsections 3 and 4. This paragraph does not apply to federal tax information that is confidential under Title 36, section 191, subsection 3.

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E. The office may report confidential information obtained under this section to Legislators, legislative committees, state agencies and the public only in the form of statistics classified so as to prevent the identification of specific taxpayers or the reports, returns or items of specific taxpayers.