Maine Senate Gives Final Approval to Tax Conformity Bill

AUGUSTA – The Maine Senate tonight gave final approval to a bill that will align Maine’s tax code to that of the federal government’s. The legislation was introduced earlier this year following a series of federal tax cuts.

The bill (LD 1655), “An Act to Update References to the United States Internal Revenue Code of 1986 Contained in the Maine Revised Statutes” passed unanimously in the Senate.

The tax conformity bill will make it easier for Maine families and businesses to file their taxes. Had the Legislature not acted on tax conformity, all Maine taxpayers would have likely been required to file amended 2017 returns and businesses would have had to keep two sets of books, one for federal taxes and another for state taxes.

Senate President Michael Thibodeau (R-Waldo) said, “I am very pleased that we were able to get this done for the people of Maine and for the state’s small businesses. I would like to thank Senator Dana Dow for his hard work as chair of the Taxation Committee. He waded through very complex tax policy issues and was able to bring all sides together to put forth a bill that will benefit all Mainers.”

Senator Dana Dow (R-Lincoln) said, “This was by far our most important vote this year. I am proud that we were able to get all sides to the table, ultimately passing this tax-neutral legislation with unanimous votes in both chambers. All Maine taxpayers will benefit from tax conformity.”

LD 1655 will now go to the governor for consideration.

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