This bill replaces Maine's old "WE CARE" program with the new "Make Change for Wildlife" program. It allows businesses to collect voluntary customer contributions at checkout (up to $10,000 annually per business) and deduct those amounts from their corporate income tax for tax years starting January 1, 2026. All funds collected through this program must be deposited into the Maine Endangered and Nongame Wildlife Fund. The program directly affects businesses that participate in collecting contributions and the wildlife fund, which supports conservation efforts for non-game and endangered species in Maine.
LD 1939 requires large corporations operating in Maine to report their global income through a "combined return" system, closing a loophole that allowed companies to shift profits offshore to avoid Maine taxes. It applies to businesses meeting specific thresholds: those reporting over $1 billion in consolidated gross revenues, subject to federal corporate alternative minimum tax, or covered by OECD's Pillar Two global tax rules. The law mandates that these companies file unified tax returns including worldwide income and apportionment factors, rather than just domestic earnings. This directly affects major out-of-state corporations with significant Maine operations that previously minimized their Maine tax liability through offshore profit shifting. The bill creates a new reporting requirement under Maine law to align with international tax standards and ensure fairer tax contributions from large multinationals.
This bill creates a refundable tax credit for Maine small businesses with annual gross sales under $2.4 million that accept credit or debit cards. The credit offsets fees these businesses pay to card issuers for processing transactions, calculated as the lesser of the actual fees paid or 2.5% of the business's sales tax remitted to the state. Businesses must maintain records of their transaction fees and annual sales to claim the credit. The credit is refundable, meaning businesses can receive a cash refund if the credit exceeds their tax liability.
LD 671 would eliminate Maine's state income tax for tax years beginning January 1, 2026, removing this tax from residents and businesses. It requires the state to review and update laws referencing income tax and establish a new budgeting system for state agencies. Under this system, agencies must justify their entire budget from scratch every eight years (zero-based budgeting) and during other years, submit proposals for 5% and 10% funding reductions. The Department of Administrative and Financial Services must report on necessary legal changes by the 2026 legislative session to implement these provisions.
This bill increases the percentage of property tax revenue Maine municipalities can recover from the state when businesses receive equipment tax exemptions. Currently, municipalities recover 50% of lost revenue for tax years before 2026; the bill gradually raises this to 60% for 2026, then 70% for 2027, 75% for 2028-2029, and 80% starting in 2030. It directly affects municipalities that grant business equipment tax exemptions under current law. The change modifies the recovery rate schedule in Section 694 of Maine’s tax code without altering the exemption itself.
LD 856 would eliminate Maine's individual and corporate income tax through a phased reduction schedule. Starting in 2026, the tax owed would be reduced by 20% each year (80% in 2026, 60% in 2027, 40% in 2028, 20% in 2029), with no income tax imposed beginning January 1, 2030. This applies to all Maine residents and businesses paying income tax under current law. The bill modifies tax brackets and rates for 2017-2029 before fully eliminating the tax.
LD 1879 imposes a 1.07% tax on corporate income exceeding $3.5 million starting in 2026, targeting large businesses to generate revenue for Maine's agricultural sector. The funds will directly support agricultural programs, including $5 million for business incentives, $1 million for property tax exemptions on qualifying agricultural buildings, and $5 million for an agriculture investment fund. It creates a 10-year property tax exemption (2026-2036) for agricultural buildings constructed or renovated after January 2026, with municipalities reimbursed 100% by the state for lost revenue. The bill allocates specific annual funding amounts to existing agricultural programs without creating new initiatives.
LD 1857 expands property tax relief for Maine veterans and their survivors by increasing exemption amounts and creating new eligibility categories. It raises the standard exemption for veterans aged 62 or older or receiving pension from $5,000 to $6,000, establishes a $7,000 exemption for veterans of World War I and earlier, and introduces tiered exemptions up to $50,000 for veterans with service-connected disability ratings of 60% or higher (e.g., $10,000 for 60%, $50,000 for 100%). The bill also maintains a $50,000 exemption for specially adapted housing units used by qualifying veterans. These changes apply to veterans meeting specific service criteria who own property in Maine.
