LD 203 creates a new refundable Maine income tax credit for employers who provide child care services for their employees' children. Starting in 2026, employers can claim a credit equal to 50% of their child care costs or $3,000 per child, whichever is lower, to reduce their tax bill. Unused credit amounts can be carried forward for up to 15 years. The credit replaces an expired law and will be reviewed by the legislature starting in 2030 to assess its policy impact and revenue effects.
LD 1363 exempts income earned by Maine residents under 18 years old from state income tax, applying to both the minor's own earnings and income earned by a dependent minor claimed by another taxpayer. The bill amends Maine tax code to remove such income from taxable calculations, effective for tax years beginning January 1, 2026. This directly affects minors and their families by eliminating tax liability on minor-earned income, such as wages or allowances. The exemption applies regardless of whether the minor is claimed as a dependent.
This bill creates a new property tax on second homes in Maine to generate revenue for specific public programs. The tax revenue will directly fund three established accounts: the Land for Maine's Future Trust Fund (for land conservation), early childhood education programs, and a new "Fund for Essential Programs and Services" (referenced in Section 41). The tax applies to real property classified as second homes under existing law, with all funds directed to these designated purposes without expiration. The bill specifies that unspent funds in these accounts must carry forward annually, and requires annual reports on fund usage to legislative committees.
LD 1641 would allow Maine municipalities to impose a local sales tax of up to 0.5% on goods and services already subject to state sales tax. To adopt the tax, a municipality must hold a voter referendum on the first Tuesday in November, with the ballot requiring a description of how the tax revenue will be used. The tax would apply year-round, not seasonally, and would be in addition to existing state sales tax rates. This bill provides communities with a new tool to generate local revenue for specific projects, without changing the statewide tax structure.
This bill exempts business equipment valued at $50,000 or less from Maine's property tax, directly affecting small and medium-sized businesses that own such equipment. It prohibits municipalities from imposing any local tax on this equipment, covering items like office furniture, repair parts, and business machinery. The exemption applies to property tax years beginning April 1, 2026, and requires the state tax bureau to provide guidance to municipalities and businesses on implementation. The bill does not affect equipment over $50,000 or other existing property tax exemptions.
This bill modifies how Maine municipalities calculate their annual property tax levy limits. It requires the State Treasurer to post annual revenue forecasts by April 15th to help towns plan budgets, and establishes a new formula using "average personal income growth" and a "property growth factor" to set the tax limit. The tax limit for a municipality is now based on the previous year's levy multiplied by one plus this growth factor, directly affecting all Maine towns and cities that set property taxes. The changes aim to provide clearer, data-driven guidance for municipal budgeting.
This bill proposes a constitutional amendment to cap annual property tax increases at 2% for Maine residents aged 65 or older who own and occupy their primary residence for at least 12 months. It would require the state to reimburse municipalities for revenue lost due to this cap using 90% of revenue from a 2% tax on lottery tickets and sports betting. The amendment would apply only to primary residences owned by seniors and would end the tax cap if the property is sold to someone outside the owner's immediate family. The proposal must be approved by voters in a statewide referendum before becoming part of Maine's Constitution.
This bill establishes a 13-member commission to study how Maine’s state-municipal revenue sharing programs could be revised to lower property taxes for municipalities. The commission will analyze existing programs like Revenue Sharing I and II, focusing on equitable distribution and addressing disproportionate tax burdens across municipalities of different sizes. It must submit findings and recommendations - including potential legislation - to the Taxation Committee by December 3, 2025. The study directly affects all Maine municipalities by examining how state funding impacts their property tax rates.
This bill creates a property tax stabilization program for Maine seniors aged 65 or older who own their home (homestead) and have lived in the state for at least 10 consecutive years. Eligible residents can apply annually by December 1st to lock in their current property tax rate, preventing future increases for as long as they meet the criteria. The state reimburses towns for lost tax revenue, and the exemption ends if the senior moves, sells the home, or no longer qualifies. The program will be reviewed in 2030 to assess its cost, impact on seniors, and fiscal sustainability.
This bill creates the Educational Opportunity Grant Program to provide additional state funding to school districts in communities where the average personal income is below the state average. The funds must be used exclusively for school programs aimed at improving educational standards for all students in those districts. Unspent funds at year-end will automatically carry over to the next fiscal year, ensuring continuous support. The program targets underserved school districts to address educational attainment gaps.
