Maine – Off-Peak Residential Electricity Exemption

SALT Report 1536 – Effective May 21, 2012 Maine will provide a sales and use tax exemption for residential electricity used for space heating or water heating through an electric thermal storage unit. Current law exempts the sale of certain energy sources used for residential heating but taxes electricity used to charge electric thermal storage space and water heaters. The bill, SP 554, provides a sales tax exemption for off-peak residential electricity similar to the exemptions provided for other forms of energy.

The exemption applies to the sale and delivery of residential electricity as follows:
  • The first 750 kilowatt hours of residential electricity per month; and
  • Off-peak residential electricity used for space heating or water heating by means of an electric thermal storage device

Off-peak residential electricity is defined as the off-peak delivery of residential electricity pursuant to tariffs on file with the Public Utilities Commission and the electricity supplied.

Residential electricity is defined as electricity provided to buildings used for residential purposes, with the exception of hotels.

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