Budget & Taxes

LD 1899 creates a new deduction for Maine state income tax on medical and dental expenses paid by taxpayers or their spouses/dependents. It allows a deduction for expenses that qualify under federal tax law (Internal Revenue Code), even if they don't meet the federal threshold or weren't claimed on federal returns. The deduction applies to expenses not covered by insurance and is effective for tax years beginning January 1, 2026. This directly affects individual Maine taxpayers who pay for healthcare costs, expanding their state tax relief beyond federal requirements.

LD 1549 proposes a constitutional amendment requiring that, starting July 1, 2027, at least 60% of sales and use tax revenue from motor vehicle dealers and the Bureau of Motor Vehicles must be dedicated to transportation infrastructure. This revenue must be spent solely on costs related to all transportation modes - including highways, bridges, transit, rail, ferries, ports, trails, pedestrian paths, and bicycle facilities - without diversion to other purposes. The amendment also designates the Legislature's transportation committee as the sole body overseeing the Highway Fund's finances. If approved by voters in a November 2025 referendum, it would become part of Maine's Constitution.

This bill imposes an impact fee on megayachts - privately owned pleasure vessels 150 feet or longer (excluding commercial, military, or academic vessels) - in Maine municipalities that charge slip fees for docking. The fee is $10 per foot over 150 feet per day, up to 30 consecutive days, with municipalities keeping 10% and sending the rest to the Megayacht Fund. The fund must distribute 50% of its revenue to municipalities for harbor and sea level rise mitigation infrastructure, and 50% to public transit infrastructure like ferries and land-based transit. The policy directly affects megayacht owners in participating municipalities and aims to fund infrastructure improvements.

LD 792 allocates $300,000 from the General Fund for a one-time research project. The bill funds the Christine B. Foundation to study how access to medically tailored groceries and dietitian counseling impacts cancer patients and their families. This research will evaluate whether these specific support services improve health outcomes for those affected by cancer. The funding is limited to the 2025-26 fiscal year with no subsequent allocations.