A $45 million tax break for Bath Iron works is one step closer to becoming law. The tax break would be stretched over the next 15 years.
The Senate voted 25-9 to approve an amended version of a bill that provides a tax break to the shipbuilder in return for at least $200 million spent on construction, improvement, modernization or expansion. The company will also have to maintain at least 5,500 workers.
The original bill would have provided a $60 million tax break and without the minimum investment and workforce requirements currently in the amended version.
Saco Democrat Justin Chenette opposed the bill, arguing that BIW's parent company, General Dynamics, is doing just fine.
"Their parent company, Mr. President, made $3 billion in profits just last year alone,” Chenette says. “For me, if you're making $3 billion in profits, you're not the one who needs a break."
Those in favor of the bill say the tax break isn't corporate welfare, as opponents have asserted.
"This is simply allowing BIW to keep more of what the company earns so they can re-invest it in our economy," says Republican Sen. Eric Brakey, of Auburn.
So far opponents don't have the votes to defeat the bill, which easily cleared the House on Tuesday.
Additional votes will be taken before it goes to Gov. Paul LePage for approval.
The Bath shipyard’s current tax break is worth $60 million and is due to expire next year, nearly 20 years after it was first approved.
