LD 229 adjusts Maine's individual income tax brackets and rates for tax years beginning in 2026, replacing the existing 2017-2025 brackets. It affects three filing statuses: single individuals (and married filing separately), heads of households, and married couples filing jointly. For 2026, the bill increases income thresholds for each tax bracket (e.g., the lowest bracket for single filers rises from under $21,050 to under $41,600) and modifies rates, including raising the top rate to 8.2% for incomes over $500,000 for single filers. The changes apply to all Maine taxpayers in these filing categories starting January 1, 2026.
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.
This bill requires the Maine Legislature to annually increase state funding for the Maine Maritime Academy by 5% until its state appropriation covers at least the same percentage of operating costs as either the University of Maine System or Maine Community College System. It establishes a 15-member commission to review all state higher education funding policies, analyze current and past funding methods, and recommend changes by December 2025. The commission includes legislators, education experts, union representatives, student members, and system leaders, with instructions to consider expanding access to affordable higher education. The bill directly affects all three public higher education systems in Maine and mandates annual reports on operating costs from each system starting in 2025.
This bill creates Maine's Small Business Capital Savings Account Program, allowing eligible small businesses in farming, fishing, or forestry to earn tax deductions for contributions to special savings accounts. To qualify, businesses must be headquartered in Maine, have 99 or fewer employees, operate in one of the three specified industries, and meet federal tax classification rules. The program sets strict account rules: balances cannot exceed $250,000, funds can only cover business equipment or property purchases (capital expenditures), and all money must be withdrawn within a year if the business closes. Businesses must report withdrawals to the state for tax deduction verification, with the program capped at certifying up to 30 total businesses across the three industry categories.
LD 1957 creates a certification system for film productions filming in Maine, allowing qualifying companies to access tax credits and reimbursements. It directly affects film production companies that meet specific criteria, such as demonstrating job creation for Mainers and spending at least $75,000 per individual on wages or services within the state. To qualify, companies must provide proof of employment benefits, confirm no state loan defaults, submit a production schedule, and agree to withhold taxes on payments to "loan-out companies" (entities used by actors/artists). The bill enables certified productions to claim tax credits for eligible expenses like crew wages, equipment rentals, and local services, aiming to boost Maine's film industry and local hiring.
LD 1865 establishes a Maine state pilot project to incentivize businesses with at least 15 employees to adopt a 4-day workweek. The program, administered by the Department of Labor, offers a tax credit to qualifying employers who maintain employee pay, benefits, and employment status while reducing weekly work hours. Participating businesses must submit detailed transition plans, and the pilot will run for 2-4 years starting January 2027. The Department will select diverse participants (including minority- and women-owned businesses) and study the impacts on both workers and employers through data collection and surveys. Public sector employers may join the pilot but are ineligible for the tax credit.
This bill (LD 1988) provides emergency funding to cover costs for Maine state employees who may face layoffs due to unexpected federal funding cuts. It authorizes the State Controller to transfer up to $2.5 million from the General Fund Reserve to cover required 10-day layoff notices and shortfalls in unemployment benefits for affected employees. The bill also allows transferring Personal Services funds from federal accounts to the General Fund to address these costs. Unspent funds must be returned to the General Fund Reserve by June 30, 2026. It directly affects state agencies and employees whose jobs rely on federal funding.
LD 1498 limits how Maine municipalities can charge impact fees for housing development projects. The bill requires towns to create a public policy document explaining how they determine when infrastructure improvements are needed and how developers' fees are calculated. It restricts fees to infrastructure directly adjacent to the development and mandates that fees be proportionate to the project's use of that infrastructure. Additionally, municipalities must spend collected fees within 180 days of receipt.
LD 125 increases the annual limit for Maine Seed Capital Tax Credit Program tax credits from $5 million to $10 million for investments made in calendar years beginning with 2027. This bill directly affects investors who qualify under the program by allowing the Finance Authority of Maine to issue up to $10 million in tax credits annually for qualifying early-stage business investments. The key change is doubling the maximum annual credit amount available for investments after 2026. This adjustment aims to support continued investment in Maine's startup and early-stage business ecosystem. The program helps investors offset taxes by funding qualifying businesses, with the new limit applying to all subsequent years.
LD 746 allows Maine municipalities to impose a 2% local sales tax on short-term lodging (like hotels and vacation rentals) if approved by voters through a referendum. The tax must be applied only to lodging already subject to state sales tax, and requires voter approval with a majority vote and at least 20% turnout from the previous gubernatorial election. Ten percent of the revenue collected must fund Maine's affordable housing programs through the State Housing Authority, while the remaining 90% goes directly to the municipality that enacted the tax. The tax cannot be applied in unorganized territory and cannot take effect before January 1, 2026.
