An Act To Provide An Income Tax Deduction For Certain Contributions To A Qualified Achieving A Better Life Experience Program Account

Maine's LD 1735 creates a state income tax deduction for contributions to qualified ABLE (Achieving a Better Life Experience) accounts, directly benefiting Maine residents who use these accounts. The bill allows up to $1,000 in annual contributions to be deducted from state income tax, with the deduction phased out for single filers earning over $100,000 or joint filers over $200,000. It aligns Maine's treatment of ABLE contributions with existing state tax rules for 529 college savings plans. The deduction applies only to contributions made to accounts meeting federal ABLE program requirements under the 2014 federal law. This change takes effect for tax years beginning January 1, 2025.