LD297 - Sham Transactions

(2015)

An Act To Increase Allowed Investments under the Maine New Markets Capital Investment Program

Sponsored by Sponsored by Senator Nate Libby (D-Androscoggin)

What is the bill?

The New Markets tax credit program is one of the worst examples of corporate fraud and abuse in Maine history. Originally designed to encourage new investments in economically struggling parts of Maine, corporations and out of state financiers abused the program through the use of phony one day loans and complex financial maneuvers. Despite not making any real investments in Maine, they stand to receive more than $35 million in taxpayer dollars. The amended bill would have banned the use of financial gimmicks like one day loans, recouped taxpayer dollars for any “sham transactions” that occurred and launched a much needed investigation. The bill passed overwhelmingly in the House yet failed along party lines in the Senate.

What happened?

Defeated

Votes