When enacted into law in 1997, the original 20-year, $60-million tax deal from the state of Maine to General Dynamics subsidiary Bath Iron Works was intended to subsidize the cost of a shipyard “modernization” the company said would position it to be a viable and competitive business for decades.
It required the company invest at least $200-million in its facility and allowed for a $3-million annual tax credit to defray the costs incurred from planning, design, engineering, construction, demolition, remodeling, repair, and other expenditures related to the infrastructure project.
But newly proposed legislation to extend the credit, made available online for the first time this week, requires the company to invest only half the amount mandated in the original act and expands the definition of a “qualified investment,” potentially allowing the company to claim reimbursement on employee training. Continue reading Bill to Extend Bath Iron Works Tax Deal Cuts Minimum Investment Requirement and Expands Definition of Qualified Expenses